As previously reported, the Bill does contain many of the clauses that were included in the Conservative Government Renters (Reform) Bill, which fell due to the election being called. The Bill does however now contain nearly double the amount of the original clauses.
The key takeaways for John Germans landlords are:
1.
Ending fixed term tenancies – this was introduced under the previous Bill and will mean that all tenancies will be moved onto periodic tenancies. When speaking to tenants we have found that security of tenancy is one which they also prefer.
2.
Tenants will have to provide 2 months’ notice to vacate a property, but with fixed term tenancies being removed, this could be served any point from move in, but end date must fall in line with the end of the rent period. Pre qualification of viewers will ensure that those viewing the property are matched with the landlords requirements to the best of our ability.
3.
Landlords will have to evidence a valid ground for possession, which will include a ground to allow them to sell or move in. A landlord would have to give 4 months’ notice to a tenant for selling or moving in, but the tenant would have a 12 month protected period at the beginning of the tenancy.
4.
After Royal Assent, a single date will be given for the abolition of the section 21. This will apply to all new and existing tenancies. The previous Government had originally put this on hold until courts were reformed to be able to cope with the additional workload, however under this Bill, the abolition is not dependant on court reform happening first. As landlords, understandably this will be unsettling, however be assured that consultation will be taking place and the government will be urged to set out a clear roadmap for changes to the current court system. We are also waiting for greater clarity on timescales for removal of the section 21 after Royal Assent.
5.
Landlords will only be allowed to increase rents once a year and in line with market rents. This will not affect our landlords as this is already in place. However, notice to increase rents will increase from 1 month to 2 months’ notice and must always be done under a section 13 notice of rent increase.
6.
Creation of a Private Rent Sector Database to allow tenants to make an informed decision about renting a property, and to help Landlords stay compliant. They will also introduce a new Property Ombudsman.
7.
Applying the Decent Homes Standard to the private rental sector with fines up to £7,000 if a landlord fails to address defined hazards.
8.
Introducing Awaabs Law to the private rental sector requiring landlords to adhere to strict timescales with regard to hazards such as damp and mould.
9.
Landlords will not be able to unreasonably withhold consent for a tenant to have a pet, and tenants will be able to challenge unfair decisions. To offer protection to the landlords, the Bill will allow Landlords to require insurance to be taken out by tenants. Please be aware though that our normal vetting process will be adhered to and we will guide you through this piece of legislation
10.
Rental discrimination will be prohibited and therefore landlords will not be able to refuse to rent to someone because they are in receipt of benefits or have children. Properties unsuitable for children will have a legitimate excuse. Any discriminatory conditions in mortgages will have no effect, and insurances that are taken out/renewed after the legislation comes into effect will also not be able to have such clauses. As our landlords you will always have final say on who to take as tenants, however we have always done this on a nondiscrimination basis and it based on affordability and suitability to the property.
Given that much of the Bill has previously been found in the proceeding Renters (Reform) Bill, we know a lot of the content will be accepted. With Labour having the majority in the House of Commons it is possible that this will go through the process much quicker and we could see this becoming legislation by next Spring with implementation by late summer 2025. As the Bill passes through its stages, we will keep you up to date.
If you would like to read the Bill, please use this link: Renters’ Rights Bill – Parliamentary Bills – UK Parliament
For guidance notes published: Guide to the Renters’ Rights Bill – GOV.UK (www.gov.uk)
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