The Renters’ Rights Bill – promising to transform the private rented sector – is a highly anticipated piece of government legislation. Whether you own a single buy-to-let or a big portfolio of rental properties, the changes could affect how you approach private rentals in the future.
The Bill is currently making its way through Parliament and is expected to become law in spring 2025. This is a relatively short timeframe, so it’s vital for UK landlords letting properties in England stay informed. That’s why our letting agents in Ilford have joined up with our Wanstead letting agents to create an essential guide to the changes ahead.
Find out what landlords need to know before the Renters’ Rights Bill makes its way onto the statute books.
An end to Section 21 evictions
Section 21 currently gives landlords the right to evict a law-abiding tenant without offering a reason. Rogue landlords have previously used the notice to remove tenants complaining about sub-standard accommodation or challenging unreasonable rent rises.
In future, landlords will use a strengthened version of Section 8 (previously used for tenants who are in breach of their rental agreements) for all instances where eviction is necessary. This enhanced notice will bolster landlords’ rights by providing clear, legal routes to eviction.
Additionally a new, free-to-use Ombudsman service will help with dispute resolution. The aim is to deal with the majority of landlord/tenant disputes, reducing the number of cases that go to court.
Expanded grounds for possession
Landlords will be entitled to take back property for all the usual reasons, such as persistent failure to pay rent, property damage or anti-social behaviour. However, Section 8 has also been expanded to encompass a raft of different grounds for eviction, including circumstances where landlords can remove a tenant who is not at fault.
Going forward, a notice to quit can be served if landlords want to sell the property, use it as their sole or principal residence, or allow a family member to make it their home. Section 8 can also be used if the landlord wants to redevelop a property but can’t do the work with the tenant in situ.
In the case of student lets, landlords will be able to remove tenants at the end of the academic year in order to re-let the property to a new intake of students.
No more fixed-term tenancies
Another much-publicised change to lettings law is the abolition of fixed term tenancies. Under the new rules, tenants can no longer be offered a fixed, 6 or 12 month agreement.
When the bill becomes law, all new tenancies will follow a rolling, ‘periodic’ model and existing agreements will switch to periodic tenancies with no defined end date. This means the tenant has the right to remain in their home until the landlord issues a Section 8 eviction notice, using the appropriate legal grounds for eviction.
A cap on rent rises
The Renters’ Rights Bill aims to establish fairer practices around rent pricing. Landlords will no longer be able to build rent increases into contracts. They will only be allowed to increase the rent annually, using a Section 13 notice and giving at least two months’ notice of the proposed rise.
The level of rent charged must reflect local market rates. If tenants decide to challenge the proposed increase, they will be able to refer it to a first-tier tribunal. The tribunal will then decide whether the requested amount is fair and reasonable.
Stamping out discrimination and unfair practices
Unfair ‘Bidding wars’ – where multiple applicants are encouraged to bid above the asking price – will no longer be permitted. Discrimination against tenants with children or those claiming benefits will also be outlawed.
In future, landlords should not ‘unreasonably refuse’ a tenant’s request to keep a pet, although they will be able to insist on appropriate pet insurance.
Better standards for rental properties
Two measures initially designed to tackle problems in social housing will now be applied to private rentals. The Decent Homes Standard will be used to eliminate poor quality housing, and Awaab’s Law will be enforced to control mould and damp in private rentals.
A database of landlords and their rental properties will be introduced, creating a hub for information and guidance. Local authorities will have access to the database to ensure that properties in their area are safe and legally compliant.
Preparing for the changes
Landlords with well-maintained properties who have carried out all the compliance checks legally required should have little to worry about next spring.
If, however, you need to catch up on repairs or you’ve yet to arrange that essential annual gas safety check, now is the time to get everything done. If you need help managing a rental property or would like some advice to help you navigate the changes ahead, don’t hesitate to call us via phone 020 3972 7341 or email info@oaklandestates.co.uk.
Meanwhile, if you’d like to find your dream home or properties to rent in Ilford, wanstead, Newbury Park, Barkingside and surrounding areas, check the below links
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