The Renters’ Rights Bill is one of the biggest challenges that landlords face this year, with its proposed changes the most significant in the sector for nearly 40 years. Understanding its impact on how you do business will be key.
Progress of the Renters’ Rights Bill
The Renters’ Rights Bill is Labour’s version of the previous government’s Rental (Reform) Bill and elements of it were a key part of Labour’s election manifesto. It had its first reading in the House of Commons in early September. Following amendments made at the committee stage in November it moved to the House of Lords and passed its second reading there on February 4. It is now due for the committee stage in the House of Lords, although a date has not yet been scheduled.
In its current form, the bill includes several changes for landlords:
The abolishment of fixed-term assured tenancies and assured shorthold tenancies
The bill seeks to move to a periodic assured tenancy model with assured shorthold tenancies abolished. The new tenancies will have a rent period not exceeding a month.
Changes to possession grounds
There will also be big changes to possession rights for landlords, giving tenants greater assurance that they can stay in their homes and landlords more defined possession grounds for when they want to reclaim their property. Since assured tenancies will no longer be in place Section 21 (orders for possession on expiry or termination of assured shorthold tenancies – so-called ‘no fault’ evictions)) will no longer apply. New ‘watertight’ possession grounds will be introduced.
New processes for rent increases and an end to rental bidding
In a bid to stamp out rental bidding from driving up prices, landlords will be required to state their set rent and be prohibited from requesting or accepting offers higher than that stated amount.
Landlord redress schemes and the Private Rented Sector Database
Landlord redress schemes will aim to improve the behaviour of rogue landlords, while the launch of a Private Rented Sector Database will require landlords to enter their details in the database and to keep their details up to date. Councils will also be given new investigatory powers to identify and fine unscrupulous landlords.
Right for tenants to request permission to keep a pet
Tenants will have the right to request permission to keep a pet, with landlords not to “unreasonably refuse” such requests. The tenant must submit their request in writing and describe their pet while, as their landlord, you must give or refuse consent in writing on or before the 28th day after the date that the tenant makes their request. You will be able to stipulate tenants take out pet insurance to protect your property.
An end to discrimination
The government also aims to stamp out discrimination with the new bill, whether that’s relating to tenants with children or those in receipt of benefits.
While the overall aim of the Renters’ Rights Bill is to improve standards in the sector and improve tenant security, the changes are significant. Keeping on top of the proposed changes, and any amendments made to the bill, will be vital.
At PH Estate Agents, we specialise in properties across Middlesbrough and North Yorkshire. We believe in traditional estate agency values, based on trust and exceptional customer service.