The Renters’ Rights Bill
This Bill received Royal Ascent on 27th October.
The implications are substantial for both landlords and tenants alike.
The bill has made its way through the Commons and has been subject to some political ping pong between the Lords and the Commons with various amendments being suggested by the Lords. Despite this, large parts of the original plans have been carried through to the final draft.
Key Provision of The Renters’ Rights Bill
This will see the abolition of Section 21 evictions with an aim of providing more stability for tenants. Landlords will still be able to secure possession of the property but will need to prove a ground on which possession is sought rather than rely on a “no fault” Section 21 notice. There have been concerns from the landlord sector that the eviction of a tenant on reasonable grounds will now also take much longer and be more costly. It has also been noted that this has led some private landlords to consider exiting the sector, which in turn may create a market for tenants where demand outstrips supply, thereby pushing up rental prices.
Owning a Pet and Renting a Property
A much discussed component is the enhanced right of tenants to keep a pet at a rented property. Here the emphasis will switch from a tenant having to seek their landlord’s consent to a situation where landlords cannot unreasonably refuse to allow a tenant to keep a pet. The landlord – not the tenant – will be required to arrange suitable pet damage insurance, if the landlord wants to obtain cover for the risk of a pet causing damage to their property.
Discrimination against Tenant Types
Another section will make it illegal to discriminate against tenants who are receiving benefits or have children. It will be interesting to see how this component will be enforced, although landlords will be required to publish an asking rent and will be prevented from accepting offers above the published rate, which might help clarify occasions where discrimination has taken place.
Landlord Registration and Disputes
This comprehensive Bill also includes provisions for a scheme that requires compulsory registration of landlords and the creation of a new ombudsman who will help resolve disputes.
This new set of proposals represents a major change in the legislation surrounding the rental sector. The landlord body, The NRLA, refers to it as the ‘biggest change to renting in over 30 years’.
If you would like to discuss issues surrounding rental property please contact one of our team of specialist solicitors whether this relates to property sale and purchase or tenancy related law.