Further to previous announcements of the Renters Reform Bill and as you may know, at the final hurdle when the Government changed that bill was dropped. However as expected the new Government have resurrected the Bill with a slightly different name. As such I wanted to update you on the new Renters’ Rights Bill which has just been introduced into the House of Commons.
Whilst you may be forgiven for thinking this is the Bill, which is often talked about but never comes, we do think this is highly likely to go through the whole process quite swiftly and will become law in 2025.
The good news is that the majority of the elements of the bill are broadly similar to those we shared with you in the Renters Reform Bill.
I thought it may be helpful to focus on the main areas of change and those that are hitting the inflammatory headlines and give the reality behind the noise, our view and how we will deliver for our valued clients.
- Section 21 ‘no fault’ evictions will be abolished on a date to be determined; this will be for existing tenancies as well as new tenancies.
What does this mean for you
Honestly not a huge amount! There are new grounds which allow you to serve notice to sell your property or move back in and lots of other grounds covered under the other section 8 notices we can serve. The percentage of notices that we served in a network of hundreds of agents with tens of thousands of properties is extremely small. The number of s 21 notices served that could have been replaced by the new section 8 grounds will be pretty much all of those! Remember, very careful referencing processes to ensure you get the right Tenants in the property for you.
- Might the courts get clogged up if the new style notices take longer to carry out an eviction?
What does this mean for you
The Bill believes that the clear grounds and the evidence being clearly laid out, alongside the Ombudsman plans to deal with disputes and looking at increasing digital pathways will help this but lets say they are wrong.
- The plan to move to purely periodic tenancies
What does this mean for you
Yes, a tenant can choose to move out of the property giving 2 months’ notice at any time after the tenancy starts. This has been the case in Scotland for years and the length of time people stay in a property has not moved a huge amount. That is because moving house is a real pain and people generally do not move without a strong reason to do so. If a tenant isn’t happy, we wouldn’t want them to stay as it becomes problematic for our landlords, if their situation changes and they have more children or move jobs or cannot afford the rent, given a change of circumstance it is always better for them to move on. Yes, there may be an odd tenant who comes and goes but this will not be the norm and is probably happening now, we just tend to agree to a surrender.
- Rent increases to be done once per annum and can be done to market rent and the tenants can apply to a tribunal if they think the rent is too high
What does this mean for you
You can still put the rent up annually. We would suggest not to try to put rents up higher than market rent, in any event, clearly a tenant may disagree and can apply, and you will abide by the decision, but if you have good comparable evidence to show what the rent is in the market you should not have an issue.
- Introduce a new Private Rented Sector Ombudsman for landlords
What does this mean for you
If you rent out a property privately without an agent you will need to become a member. As agents we are part of the agents Ombudsman now and it is a really useful mechanism for avoiding legal disputes which cost both parties money, we will help facilitate your registration and will help you if any complaints do arise.
- Create a Privately Rented Property Portal to help landlords understand their legal obligations and demonstrate compliance.
What does this mean for you
If you are compliant and aware of your obligations as a landlord you should not find this onerous. This is a real worry for Landlords who are breaking the rules and putting others in a bad light. As agents we welcome this step as it will help improve standards in the rental sector.
What this means for you
If your property would be deemed reasonably suitable for a type of pet you will need to allow it, however we can make sure an appropriate insurance policy is in place to cover any possible extra damage. People with pets also tend to stay longer!
- It will be unlawful to discriminate against children and benefit tenants
What this means for you
You can still require referencing to be passed and choose the tenants you wish to accept; you obviously must not discriminate against certain categories of people including these.
- There will be a decent homes standard brought in and Awaabs law which gives specific timelines Landlords must adhere to regards to damp issues.
What this means for you
We already have a similar measure to this with the current Housing Health and Safety Rating System, so not something to worry about unduly there may a few extra parts to it, we have yet to see the detail.
- You cannot encourage Tenant bidding wars or accept a rent over the asking price
What this means for you
You will need to make sure the rent is priced correctly at the outset so you will need to research the market rent in the area.
There are a few more elements but these are the key areas, and we don’t want to flood you with the detail, especially as there may be changes yet.
Our View:
Whilst change is always a concern, As agents we have had time to prepare for this and as you can see from the answers to these elements, the majority of the changes are processes and documents which as an agent we have got it covered.
Dramatic as some of the headlines are, the reality is simply not that frightening unless perhaps you were trying to do this on your own!
We have much more detail around the plans, and we are comfortable with them. If you manage your own property but would like to have the security of an agent that can support you through this next phase in the rental market and take the stress out of it, then get in touch. We have a great team behind us who will have everything ready, giving you the best possible position when the changes roll in.
We look forward to speaking with you soon.
