As expected, the new Government have published the new Renters’ Rights Bill that was initially begun by the Conservative party a few years ago.
The Bill is far more aggressive in both severity and scope with large amendments to The Housing Act 1988, and as such how Landlords can conduct the beginning of new tenancies, as well as actions that can be taken mid-tenancy.
The Bill could be introduced and in power as soon as summer 2025, depending on how the various readings of the Bill work their way through both the House of Commons and the House of Lords.
Though it is unlikely to get through both with no amendments, the sheer scale of the proposals will mean that even when altered this Bill will be a substantial change to the rental market.
Fixed term and assured shorthold tenancies to be abolished.
Allowing tenants to provide 2 months’ notice at any time inorder to end the tenancy. Though the landlord could agree to a shorter notice period in the agreement.
Rent periods will no longer exceed one month.
A ban on advance rent payments.
All new tenancies are to automatically become periodically assured tenancies at the commencement of the law.
Any wording in agreements that attempt to get around this will be null and void.
Abolition of Section 21 evictions.
Updated grounds for possession of Section 8 Evictions.
Proof of deposit protection will now be mandatory for a section 8 eviction.
First-Tier Tribunals can now impose a rent repayment order of up to 2 years’ rent for mis-using a possession ground.
Longer Notice Periods for all grounds for eviction.
The implementation of Ground 1A, in which a Landlord can give 4 months’ notice in order to sell the property, at the end of the notice there is a 12 month restricted period where the property may not be re-let and must be sold.
3 months of arrears required for an eviction relying on rent arrears.
An updated set of definitions for anti-social behaviour of a tenant in the eyes of the court.
12 month protected period at the beginning of the tenancy where no notice, with the exception of rent arrears, can be served.
Specific ground 4A for student accommodation to be introduced (also included with some types of temporary or supported housing such as those in the stepping stone schemes)
Rent increases will be formally standardise rent increases, by way of Section 13 Notice, which will now need to provide 2 months’ notice to the tenant.
The Landlord will only be able to do this in order to increase it to standard market rent.
Any clauses or agreements to rent increases will not be valid.
Landlords and Tenants can agree to decrease the rent at any point during the tenancy.
Tenants will be able to challenge rent that is above market rate The First-Tier Tribunal, free of charge.
The Tribunal will not be able to recommend a rent overmarket rate.
The Tribunal will gain new powers to defer increases for 2 months in the cases of tenant hardship.
Decent Homes Standard and Awaab's Law
Social sector standards now to apply to the private sector.
- The Decent Homes Standard;
- Property Managers must be qualified;
- Awaab’s law to be applied in the Private sector (Section 42 of the Social Housing (Regulation) Act 2023).
Landlord joining a new private rental sector Ombudsman, regardless of whether they use property agents or not, will be a legal obligation.
The Ombudsmen will also function as a Landords Redress Scheme, designed to force landlords to be accountable for any errors or breaches in legislation.
There will be a £7,000.00 fine if the local authority finds a landlord has not joined the scheme, this can increase to up to £40,000.00.
New Ombudsman to provide complaint resolution services for prospective, current and previous tenants.
New Ombudsmen to have powers to order landlords to:
When a property is listed for rent, the proposed rent must be specified in writing.
Landlords and Agents will be banned from encouraging applicants to offer higher rent.
Landlords and Agents will be unable to accept any rent higher than the listed rent.
Breaches of this ban could result in fines of up to £7,000.00.
Tenants will have the right to request consent from the landlord, which can only be denied for specific reasons (such as prohibition of a pet in a superior lease)
The Landlord will have 28 days to respond to a request.
As the right only applied to tenants, a property may still be advertised with the prohibition of pets.
The Tenant will have the right to appeal to the new Ombudsmen, or by going to court.
Pet insurance will be implied within tenancy agreements, with the tenant liable, or liable to reimburse the paying landlord.
Landlords legally obligated to register themselves as individuals, as well as their properties with a new ‘Rented Property Portal’.
Landlords may face penalties if marketing a property that has not been registered with the required information.
There will be a fee for joining this database, the government has stated that they are working to ensure the fee is proportionate and good value.
If landlords do not join, they will not be able to gain an order for possession, and may be fined by local authorities of up to £7,000.00 which can increase to £40,000.00 and result in criminal prosecution.
Though the portal is not yet ready, the government has promised that it will be a landlord’s main resource when checking on their information and ensuring they are fulfilling their responsibilities.
Currently, where ground rent exceeds £250 (or £1000 within London) and where the property is the leaseholder’s principal dwelling the lease is considered an Assured Shorthold Tenancy.
As such the Landlord can serve a section 8 notice for groundrent arrears, treating a long lease as though it is a short-term tenancy, with simpler grounds for eviction.
The proposed Bill will state that tenancies more than 7 years cannot be Assured Tenancies and will bring an end to section 8 use on long leases.
Blanket ban on any landlords not willing to rent to people who have children or receive housing benefits.
This also extend to lease agreements, mortgages and insurance contracts, any wording suggesting this does not apply will be null and void.
Affordability will still be a ground for landlords to deny applicant tenants.
For further information regarding any aspect of landlord and tenant law, please do not hesitate to contact Mr Bill Dhariwal (DDI: 01489 864 117 E: bill.dhariwal@lawcomm.co.uk) or Mr Sam Nolan (DDI: 01489 864 177 E: sam.nolan@lawcomm.co.uk).