Significant changes are on the way for the rental market, following the introduction of the Renters’ Rights Bill by the Labour Government on 11th September 2024.
This public bill was officially presented to Parliament and underwent its First Reading in the House of Commons. Although this stage does not involve any debate, it signifies the start of a major transformation in the management of tenancies throughout the UK.
The Second Reading, where Members of Parliament will discuss the bill, is set for Wednesday 9th October 2024. After this, the bill will continue its progression through Parliament. The reforms proposed in this bill aim to provide enhanced protections for tenants while also bringing substantial changes for landlords. Here’s what you should know about the upcoming changes and how to prepare for them.
What Changes are on the Horizon?
Farewell to “No-Fault” Evictions.
One of the most significant changes is the abolition of Section 21, often referred to as “no-fault” evictions. This means landlords will no longer have the ability to evict tenants without a justified reason. Instead, a valid, legally defined reason for terminating a tenancy is required, such as rent arrears or the intention to sell the property.
Naturally, many landlords are apprehensive about how this will impact their ability to reclaim their properties. Ben Beadle, the head of the National Residential Landlords Association (NRLA), has emphasized that landlords will need time to adapt to this change. Conversely, tenant advocacy organizations, such as Generation Rent, view this as a long-overdue reform that enhances security for renters.
Rent Increases and Bidding Wars
Under the new regulations, landlords are limited to increasing rent only once a year, and it must be in line with current market rates. The goal is to offer tenants greater stability and prevent unjust rent hikes.
The legislation will also eliminate rental bidding wars. Moving forward, landlords and agents are required to publish an asking rent and cannot accept offers that exceed this amount. This change could be beneficial for tenants, particularly in high-demand areas where bidding wars have driven rents up.
Tenant Protections: Pets, Benefits, and Families
The Renters’ Rights Bill also seeks to create a fairer market by preventing landlords from discriminating against tenants with children or those receiving benefits.
Moreover, tenants will have the right to request permission to keep pets in their homes, and landlords must provide a valid reason if they refuse. While tenants may still be asked to obtain pet insurance to cover potential damages, blanket “no pets” policies will soon be a thing of the past.
Awaab’s Law and the Decent Homes Standard
In memory of a tragic case involving a toddler who lost his life due to mould exposure, Awaab’s Law will now be enforced in private rentals.
Landlords are required to address serious health hazards, such as dampness or mould, within a specified timeframe or face penalties. The Decent Homes Standard will also apply to private rentals, ensuring that properties are safe and liveable.
What Are Landlords Saying About the Renter’s Rights Bill?
Landlord reactions have been varied. Many express concerns about how these changes will impact their property management. The NRLA has noted that while the majority of landlords strive to provide safe and comfortable homes, they require adequate time to adjust their practices and comply with the new regulations. There are also concerns that without reforms to the court system, resolving disputes or evictions may become increasingly time-consuming.
In contrast, tenant groups are pleased to witness these reforms finally taking shape. They believe that these changes will enhance protections for renters and help eliminate the unfair practices that have long affected the market.
"Whilst it may seem like a daunting prospect, the implementation of Renters Rights Bill is even more reason to work with a reputable agent to help manage your investment properties."
Michaela Sanders
Preparing for the Changes
With the Renters’ Rights Bill anticipated to become law by the summer of 2025, there’s still time to prepare. Begin by reviewing your tenancy agreements, updating your policies regarding pets and rent increases, and ensuring your properties meet the Decent Homes Standard. It’s also wise to stay informed about the bill's progression, as MPs and peers may suggest additional changes before it becomes law.
Final Thoughts
Embracing change can be challenging, but with proper preparation, you can navigate these updates seamlessly. At Heart & Home we are here to support landlords through every step of the process, from ensuring compliance of their properties to providing guidance on managing tenancies under the new regulations.
If you have any questions or need assistance in preparing for these changes, please don’t hesitate to reach out to us.
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