The new Renters’ Rights Bill – what will it mean for Landlords and Tenants - As The Experts
September 2024
The New Renters’ Rights Bill : What will it mean for Landlords and Tenants - As The Experts
Many of the new rules will be introduced in 2025 for both new and existing tenancies here we highlight the main points.
- End Section 21, the so-called ‘no fault eviction’ and abolish fixed-term tenancies – with a set of ‘robust’ new possession grounds requiring four months’ notice from landlords.
- Limit in-tenancy rent rises to a single annual increase capped at market levels.
- Introduce a Decent Homes Standard to the private rented sector with fines of up to £7,000 for failing to meet standards.
- Extend Awaab’s Law to private renting – setting clear timeframes within which landlords must make homes safe where they contain serious hazards.
- Create a digital private rented sector database with information for landlords, tenants, and councils.
- Set up a new ombudsman service that will provide fair, impartial and binding resolution to both landlords and tenants, reducing the need to go to court.
- Strengthen tenants’ rights to request a pet
- Strengthen tenants right for those looking to rent whilist on benefits
- Tighter controls on bidding for rented properties.
• Changes will apply to both new and existing tenancies at the same time – expected by summer 2025.
• Tenants will be able to give notice from day one of the tenancy.
• Grounds such as the landlord needing to sell or move in will not be available in the first 12 months of the tenancy, and will require four months’ notice.
• The mandatory rent arrears ground will now require three months’ arrears and four weeks’ notice.
• Changes to the student possession ground, which will only apply to HMOs let entirely to students.
Information source - National Residential Landlord Association ( Reform Bill Rules for England Only)
As the Bill makes its way through the Commons and then the Lords, the private rented sector will have an opportunity to lobby MPs to get behind various amendments which will inevitably be proposed before the final draft is agreed.
Impact on the Rental Market
There are a number of concerns within the industry and there are warnings that further administrative requirements and fears over putting more pressure on an already limited supply of rental homes. Kerr and Co are here to support landlords and tenants during this very difficult transition and remain committed to fair approach that ensures the rights of both tenants and landlords are protected.
However there are a number of practical condiderations and challenges such as the gap between supply and demand which need addressing. There must be a balance so the rental market is sustainable and tenants and landlords fairly supported.
For more information on renting out your property or if you need help or advice please contact our Lettings team or Sales team on 0208 743 1166