The revised Renters’ Rights Bill proposes the most significant change for landlords in years. The original proposal by the Conservative Government aimed to improve housing standards and implement reforms in the private sector was mentioned in this year’s King’s Speech.
The bill has had its first reading in the House of Commons and is set to become law next year. Many landlords are interested in learning more about it, as it means more regulations to understand. This is by far the most significant change for landlords in years.
Key provisions
At this stage, we want to bring to your attention the main changes:
- A ban on no-fault evictions, abolishing Section 21
- Ending the practice of rental bidding wars and in-tenancy increases
- Tenants will have a right to home a pet
- Abolishing blanket bans on tenants with children or those receiving benefits.
- Application of Awaabs Law to the private rented sector
- Creating a digital private rented sector database
Abolishing No-fault (section 21) Evictions
The ban on “no-fault” evictions, which would eliminate Section 21 evictions, changes the balance of power between landlords and tenants.
While this change aims to provide more security for tenants, it may unintentionally increase disputes. There are already concerns about how the courts will cope.
The End of Rent Review Clauses & Bidding Wars
The Renters Reform Bill includes a significant proposal to remove rent review clauses from tenancy agreements.
These clauses have traditionally allowed you as landlords to increase rent during the tenancy periodically. However, rent increases will no longer be subject to these clauses under the new bill. Instead, rent increases will be closely regulated, with landlords permitted to raise rent only once per year.
This change is intended to enhance renters’ security and predictability. It will eliminate unexpected rent hikes multiple times within a year, providing tenants a more stable renting experience.
A right to have a pet
The number of people who own pets has increased significantly since the pandemic. Landlords will no longer be able to reject potential tenants just because they have pets. So when you advertise, just be mindful, you can’t ask for those who don’t have pets.
Accept Tenants With Children or Those On Benefits
The legal requirement to accept tenants with children or those on benefits also signifies a substantial change in landlords’ rights to select their tenants.
This measure is designed to guarantee fair access to housing.
We understand that you may have concerns about your risk management as a landlord. We’ll need to wait and see how the law provides clear guidelines to prevent discrimination and safeguard you from possible undue financial risk.
“Awaabs” Law
Awaab’s Law is named after a three-year-old boy who tragically passed away in 2020 due to prolonged mould exposure. The law’s introduction means strict timelines to resolve any issues and carry out the necessary repairs.
Those landlords who fail to address serious hazards such as dampness or mould face significant penalties, including fines of up to £7,000 and possible prosecution.
No doubt, the law will likely prompt landlords to be more proactive in property maintenance. However, it may also lead to disputes over the interpretation of what constitutes a “serious hazard”.
Have a look at how to be a good landlord. Providing good quality accommodation is a win-win situation for all.
Private Rented Sector Database
This database aims to keep a register of landlords. This will give tenants transparency and the information necessary before deciding whether to rent a property. However, with the shortages of suitable accommodation in the private rental market, we wonder if it will really work.
For the local councils, it will make it easier for them to identify bad landlords.
It is hoped that it will provide landlords with a ” one-stop shop,” allowing them to keep themselves up to date with changes in legislation and understand their liabilities. This will also mean extra time and fees, adding to your existing burden.
If you fail to register, there will be penalties.
What’s next
Many experts anticipate that some changes in the details will occur before the second reading. This marks the most significant change for landlords in years, so it’s not surprising. The second reading is scheduled for October 9th. Please follow us on Facebook or LinkedIn, as we will post updates there.
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