The Renters Rights Bill – Landlords Take Note
The last Government looked set to reform the regulations around domestic rental properties and it seems like the new Government is set to go beyond what was previously proposed.
The new Bill had its first reading in the House earlier in September so is at its early stages however, given the hefty Government majority and the central location of the policy withing the Labour Manifesto, we can anticipate a relatively rapid process into law.
Key components of the Bill include the following provisions.
Rent arrears grounds will be amended so tenants must be in 3 months arrears (up from 2 months) before a Section 8 notice can be served on the mandatory rent arrears ground. Furthermore, the notice will give the tenant 4 weeks (up from 2 weeks) before the landlord can start court proceedings. This means that a tenant will need to be 4 months in arrears before court proceedings can begin.
A much discussed provision is that Landlords cannot unreasonably refuse a tenant’s request to have a pet in the property. It will also be unlawful for landlords to refuse tenants on benefits or who have children. As ever the detail here will be interesting to observe.
There is also an intention to end bidding wars in that it will be illegal for landlords or agents to ask for, or accept, offers from prospective tenants above the advertised rent.
It seems likely that a new private rented sector landlord ombudsman post will be created with the aim of settling disputes with landlords without going to court.
There will also be a Private Rented Sector database which all landlords will need to be registered on.
The Bill also seeks to end fixed term tenancies. Tenants will be able to stay in the property until they decide to leave (by giving two months’ notice) and will introduce a new decent homes standard and be required to investigate and fix any health hazards.
Collectively these provisions will lift the rights of the tenant. At a time when the rental stock is under heavy pressure it will be interesting to see how small landlords in particular respond to these changes.
The Policy Director of the National Residential Landlords Association, Chris Norris, said it is vital that whatever replaces Section 21 works for both landlords and tenants.
“With an average of 15 households chasing every available home to rent it is vital that rental reform does not make an already serious supply crisis in the private rented sector worse.”
If you have any concerns about the law relating to tenancies, contact David Trood at Bird & Lovibond.
T: 01895 256151