Renters’ Rights Bill
As expected, the new Government have published the newRenters’ Rights Bill that was initially begun by the Conservative party a fewyears ago.
The Bill is far more aggressive in both severity and scopewith large amendments to The Housing Act 1988, and as such how Landlords canconduct the beginning of new tenancies, as well as actions that can be takenmid-tenancy.
The Bill could be introduced and in power as soon as summer2025, depending on how the various readings of the Bill work their way throughboth the House of Commons and the House of Lords.
Though it is unlikely to get through both with noamendments, the sheer scale of the proposals will mean that even when alteredthis Bill will be a substantial change to the rental market.
Periodic Tenancies
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 noticeperiod in the agreement.
Rent periods will no longer exceed one month.
A ban on advance rent payments.
All new tenancies are to automatically become periodicallyassured tenancies at the commencement of the law.
Any wording in agreements that attempt to get around thiswill be null and void.
Possession Proceedings
Abolition of Section 21 evictions.
Updated grounds for possession of Section 8 Evictions.
Proof of deposit protection will now be mandatory for asection 8 eviction.
First-Tier Tribunals can now impose a rent repayment orderof 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 cangive 4 months’ notice in order to sell the property, at the end of the noticethere is a 12 month restricted period where the property may not be re-let andmust be sold.
3 months of arrears required for an eviction relying on rentarrears.
An updated set of definitions for anti-social behaviour of atenant in the eyes of the court.
12 month protected period at the beginning of the tenancywhere no notice, with the exception of rent arrears, can be served.
Specific ground 4A for student accommodation to beintroduced (also included with some types of temporary or supported housingsuch as those in the stepping stone schemes)
Rent increases
Rent increases will be formally standardise rent increases,by way of Section 13 Notice, which will now need to provide 2 months’ notice tothe tenant.
The Landlord will only be able to do this in order toincrease it to standard market rent.
Any clauses or agreements to rent increases will not bevalid.
Landlords and Tenants can agree to decrease the rent at anypoint during the tenancy.
Tenants will be able to challenge rent that is above marketrate 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 2months 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 (Section42 of the Social Housing (Regulation) Act 2023).
Ombudsmen Membership for Landlords
Landlord joining a new private rental sector Ombudsman,regardless of whether they use property agents or not, will be a legalobligation.
The Ombudsmen will also function as a Landords RedressScheme, designed to force landlords to be accountable for any errors orbreaches in legislation.
There will be a £7,000.00 fine if the local authority findsa landlord has not joined the scheme, this can increase to up to £40,000.00.
New Ombudsman to provide complaint resolution services forprospective, current and previous tenants.
New Ombudsmen to have powers to order landlords to:
- Issue apologies
- Provide further information to tenants
- Carry out remedial action
- Pay compensation to tenants
Bidding Wars for Properties
When a property is listed for rent, the proposed rent mustbe specified in writing.
Landlords and Agents will be banned from encouraging applicantsto offer higher rent.
Landlords and Agents will be unable to accept any renthigher than the listed rent.
Breaches of this ban could result in fines of up to£7,000.00.
Right to Request Consent for a Pet
Tenants will have the right to request consent from thelandlord, which can only be denied for specific reasons (such as prohibition ofa 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 stillbe advertised with the prohibition of pets.
The Tenant will have the right to appeal to the newOmbudsmen, or by going to court.
Pet insurance will be implied within tenancy agreements,with the tenant liable, or liable to reimburse the paying landlord.
Private Rental Sector Database
Landlords legally obligated to register themselves asindividuals, as well as their properties with a new ‘Rented Property Portal’.
Landlords may face penalties if marketing a property thathas not been registered with the required information.
There will be a fee for joining this database, thegovernment has stated that they are working to ensure the fee is proportionateand good value.
If landlords do not join, they will not be able to gain anorder for possession, and may be fined by local authorities of up to £7,000.00which can increase to £40,000.00 and result in criminal prosecution.
Though the portal is not yet ready, the government haspromised that it will be a landlord’s main resource when checking on theirinformation and ensuring they are fulfilling their responsibilities.
Stopping the AST Trap for Long leases with Large Ground Rents.
Currently, where ground rent exceeds £250 (or £1000 withinLondon) and where the property is the leaseholder’s principal dwelling thelease 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, withsimpler grounds for eviction.
The proposed Bill will state that tenancies more than 7years cannot be Assured Tenancies and will bring an end to section 8 use on longleases.
Ban on Discrimination
Blanket ban on any landlords not willing to rent to peoplewho have children or receive housing benefits.
This also extend to lease agreements, mortgages andinsurance contracts, any wording suggesting this does not apply will be nulland void.
Affordability will still be a ground for landlords to denyapplicant tenants.
For further information regarding any aspect of landlord andtenant 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).
