The Renters’ Rights Bill currently going through Parliament will bring significant changes for residential landlords of rented property in England and landlords will need to understand the changing landscape.
This note provides a broad overview of the proposed amendments to residential rented tenancies. The Bill, once it becomes law, is intended to provide more security and protection for residential tenants.
Changes from Fixed Term to Periodic Tenancies – Fixed term tenancies will become periodic until formally determined on the more restricted grounds that will become available in the future. The tenant will be able to remain in the property until they decide to terminate providing two months’ notice, unless there are grounds under Section 8 for a landlord to terminate the tenancy.
Abolishing Section 21 Evictions – The Section 21 evictions known as the “No Fault Evictions” will be abolished. Section 8 Notices will serve as the form of termination for landlords with the revised grounds. For example, a new ground for possession, will include when a landlord intends to sell the property, along with the already established Section 8 grounds, such as rent arrears. The rent arrears notice period is intended to increase from the current two months’ notice to a three months’ notice period.
The Right to Request Consent for a Pet – Tenants will be able to submit requests to the landlord for the right to have a pet at the property, and such a request cannot unreasonably be refused. A landlord will be entitled to require a tenant to have pet insurance to cover any damage that may occur to their property.
Private Rented Sector Database – This will be created to assist landlords in understanding their legal obligations and to show their compliance. In addition, this will allow tenants to have access to the database providing more information to them when they consider renting from a particular landlord. The landlord will be required to register on the database if they wish to use certain grounds for possession.
Private Rented Sector Landlord Ombudsman – The Ombudsman is intended to deal with complaints in a quick, impartial and binding resolution for tenants facing issues with their landlord.
Decent Homes Standard – This is intended to provide tenants a safer and better quality home.
Application of Awaab’s Law to the Private Rented Sector – This will be applied to the private rented residential sector extending it from the social housing sector to ensure homes are safe and free from serious hazards.
Preventing Discrimination against Prospective Tenants in receipt of Benefits or with Children – The new Act will make it illegal for landlords or agents to discriminate against those tenants who are in receipt of benefits or have children to ensure that prospective tenants are treated equally and fairly.
Tackling the Rental Bidding – The aim is that the Act will end the rental bidding that can occur in respect of new tenancies by preventing landlords and agents from asking for or accepting offers for rent above the advertised rent. This will require landlords and agents to publish an asking rent for the property and it would be illegal for them to accept offers above the rate stated.
Local Authority Enforcement Strengthened – It is intended to expand the civil penalties available for enforcement of breaches in relation to the landlord’s rented property.
Rent Repayment Orders – These are already in place, but the new Act will extend their reach to superior landlords and increase the maximum penalty.
It is understood that in order to end the Section 21 evictions once the Act is passed, the new tenancy system will apply to all private rented tenancy, which will mean that existing assured shorthold tenancies will be converted to the new periodic tenancies and will be governed by the new rules.
As the Bill is still going through Parliament, there may be some changes to the proposed amendments. These changes are significant for landlords and we await to see the final Act in 2025.
If you require advice in relation to residential tenancies, please contact Nicola Stewart or Anthony Shalet.
