Renters Rights Bill
Renters Rights Bill, what does it mean for you?The government has recently released further details of the Renters rights bill, which delivers on Labour’s manifesto commitment to transform the experience of private renting.
The details are lengthy, and we have tried to summarise some of the important and relevant parts.
Government says that the bill “aims to improve the current system for both the 11 million private renters and 2.3 million landlords in England. The aim is to give renters much greater security and stability so they can stay in their homes for longer, build lives in their communities, and avoid the risk of homelessness.”
Some of the changes are: –
Abolishing section 21 evictions.
Creating a private rented sector database.
Strengthening tenants’ rights to request a pet in a property.
Applying decent Homes standard.
Changing the structure of rent increases.
Applying “Awaab’s Law”
Grounds for possession.
Making it illegal for Landlords and agents to discriminate against tenant with children or benefits.
Ending rental “bidding”
The new legislation is intended to implement a simpler tenancy structure where all assured tenancies are periodic, not fixed term and ensure possession grounds are fair to both parties, giving tenants more security and ensuring Landlords can recover their properties when reasonable.
Establish a private rented sector Landlord ombudsman, to provide a quick, fair, impartial and binding resolution for tenants’ complaints about their landlord.
Establish a Private rented sector database to help Landlords understand their legal obligations and demonstrate compliance.
Pets, the tenant will have strengthened rights to request in a property and the Landlord will be able to require insurance to cover any damage to the property.
End the practice of rental bidding by making it illegal for Landlords to accept an offer above the advertised rent.
Make it illegal for Landlords and agents to discriminate against tenants in receipt of benefits or with Children.
Fixed term to periodic tenancies.
The Renters Reform Bill will remove fixed term tenancies and replace with periodic tenancies. In short, this means that tenants are obliged to give two months’ notice to terminate a tenancy. Landlords however cannot serve notice within the first twelve months of a tenancy.
Grounds for possession.
The bill is intended to give responsible Landlords the ability to have robust grounds for possession. Landlords must, as in the current system, use the courts if a tenant fails to leave.
There are two types of grounds for possession, mandatory and discretionary.
There is a comprehensive list of Mandatory and Discretionary grounds that we can supply.
The court must award for possession if a mandatory ground is proven and for discretionary grounds, it can consider if possession is reasonable, even when the grounds are met.
Rent increases.
Part of the Bill intends on preventing unreasonable or above market rent increases.
In future, all rent increases will be made using the same process.
Landlords will be able to increase rents once per year to the market rate by serving a “section 13” notice setting out the new rent and giving the tenant at least two months’ notice of it taking effect.
If the Tenant believes the increase exceeds market rent, they can challenge this at an independent tribunal.
Implementation.
It is understood that the introduction of the new system will happen in one stage.
Upon implementation all existing tenancies will convert to the new system and any new tenancies will be governed by the new rules.
Any exiting fixed term tenancies will convert to periodic tenancies and Landlords will no longer be able to serve section 21 or section 8 notices.
Notice
If a landlord intends to sell a property, or move back into a property, they cannot serve notice during the initial 12 month “protected” period of the tenancy. This notice will be for a minimum of four months.
A tenant will be able to end a tenancy by giving two months’ notice, the end date of the tenancy will need to align with the end of a rent period.
Ombudsman
The government will introduce a new Private rented sector Landlord Ombudsman Service, which all landlords will be required to join.
Tenants will be able to use the Ombudsman to raise complaints about Landlords actions (or lack of) or behaviours. Local council will be able to take action against Landlords who fail to join the Ombudsman or comply with any ruling made by the Ombudsman.
Landlords will benefit from having tenant-initiated complaints resolved in a quick and cost-effective way.
Membership of the service will be paid for by the Landlord.
Private Rented Sector Database
The Bill will introduce a new private rented sector database to which all landlords must register. This is to ensure and monitor that properties are compliant with legislation, at the start and also whilst a tenancy continues.
The information held on the database has not yet been published.
Rental bidding
The Bill will prevent Landlords from accepting an offer higher than the advertised price.
Decent Homes Standard
The decent homes standard will aim to ensure that all Landlords provide decent housing and a good service for their tenants. This will be enforced by local councils who can impose fines if Landlords don’t comply with improvement notices.
Pets
The Bill will ensure that Landlords do not unreasonably withhold consent when a tenant requests to have a pet in their home, with the tenant able to challenge unfair decisions.
The Bill will allow Landlords to require insurance to cover pet damage.
It is understood that the tenants’ fees ban will be amended to make this work.
Awaab’s Law
Awaab’s Law which was introduced in 2023 for social housing will be extended to
privately rented homes.
The law is set up to ensure compliance for Landlords to deal with Hazards such
as but not limited to damp and mould.
Again, local authorities will be responsible for enforcement.
Above, is just a very brief snapshot of the Bill.
For more comprehensive information, call us on 020 84002726 or email info@glaproperty.com with any questions.
