The long-awaited Renters Reform Bill is a significant piece of legislation set to reshape the private rented sector in England. As a landlord, it is crucial to understand how these changes may impact your property investments and tenancies. In this blog post, we will break down the key highlights of the bill and what they mean for you.
Take a read through this blog, and get in touch if there are any issues you’d feel best comfortable being talked through. We’re always on the end of the phone to chat.
Delays to abolishing Section 21 (the no fault eviction)
One of the most notable aspects of the Renters Reform Bill is the proposed abolishment of Section 21, which allows landlords to evict tenants without providing a reason. It is important to note that this change has been delayed until such a time as the County Courts are able to rule on and enforce possession of properties in England. Landlords can still use Section 21 notices for the time being, but it is essential to stay informed about the timeline for its eventual removal.
Assured Shorthold Tenancies to become Assured Tenancies
Under the new legislation, Assured Shorthold Tenancies (ASTs) will be converted into Assured Tenancies meaning that fixed term tenancies will be abolished and as such all tenancies will become periodic by default. This change aims to provide tenants with greater security and stability in their rental homes and reduces the need for frequent contract renewals.
Ending the ‘AST’ Trap for leasehold properties
The bill also addresses the issue of leases with ground rent over £250 outside London and £1,000 in London. In these cases, the leases are currently considered AST’s if the property is the leaseholder’s only or principal dwelling. This means that landlords could serve a section 8 notice if the ground rent charge is more than 3 months in arrears. This change will ensure that tenants in such properties are not unfairly treated and have access to the same rights and protections as other renters.
New Section 8 Grounds for Possession
To balance the abolishment of Section 21, the bill introduces new grounds for possession under Section 8. These grounds will allow landlords to regain possession of their property in certain circumstances, such as when they wish to sell the property or move back in themselves. Further grounds are for occupation as supported accommodation, repeated rent arrears, anti-social behaviour, and repossession of student HMOs at the end of the academic year.
New process in respect of increasing rent
The Renters Reform Bill also includes new provisions related to rent. This includes completing a new revised section 13 form giving 2 months’ notice. If the rental increase is accepted by the tenant, the rent will change on the day after expiry of the notice. If the tenant does not agree then they can refer to the 1st tier tribunal before the new rent is due. Furthermore, the landlord can only increase the rent once per year.
Pets in rental properties
Under the new legislation, tenants will have the right to request consent for keeping a pet in the rental property. Landlords will need to consider these requests fairly and provide a valid reason if they choose to refuse. It is important to establish clear policies and guidelines regarding pets in your rental properties.
Introduction of a Private Rental Sector Ombudsman & creation of a PRS Database
The bill proposes the establishment of a new Private Rental Sector Ombudsman and make it compulsory for all private landlords in England to join a landlord redress scheme irrespective of whether they use an agent. This body will manage disputes between landlords and tenants, providing a more streamlined and efficient resolution process. It is also expected that a new private rented sector database will be created to improve transparency and accountability in the rental market. This database will likely include information about landlords, properties and any relevant enforcement actions.
The Decent Homes Standard for the Private Rental Sector
The Renters Reform Bill aims to extend the Decent Homes Standard to the private rental sector. This means that rental properties will need to meet certain minimum standards of safety, comfort and repair. Landlords should assess their properties and make any necessary improvements to comply with these standards.
Addressing Discriminatory Practices
The bill takes a strong stance against discriminatory practices in the rental market. Landlords will no longer be allowed to impose blanket bans on renting to families with children or individuals receiving benefits. It is crucial to ensure that your tenant selection processes are fair, non-discriminatory and are compliant with the new regulations.
Moving Forward
The bill is now in the House of Lords and as it progresses through both Houses it is expected that there will be more clarification and detail particularly in respect of the Property Ombudsman and PRS database.
However, the Renters Reform Bill will introduce significant changes to the private rental sector, and as a landlord, it is essential to stay informed and adapt to these new regulations. By understanding the key highlights of the bill and their potential impact on your tenancies, you can navigate the changing landscape with confidence.
Remember to seek professional advice from professionals such as Bricknells Rentals to ensure compliance and protect your investments. Stay proactive, communicate openly with your tenants, and embrace the opportunities that come with a fairer and more balanced rental market.
Contact Us
If you are a landlord looking to find out more about any of our services, please get in touch. You can call us to request a free landlord’s pack or to further discuss our property management services, investment opportunities and more. Email us on enquiries@bricknells-rentals.co.uk or call us on 01709 365584.