As the Renters’ Rights Bill makes its way through Parliament, it’s crucial for landlords to understand how this landmark legislation may impact the private rental sector. Here’s what you need to know to adapt and thrive in this evolving regulatory landscape.
Key Updates on the Renters’ Rights Bill
Restructuring of Assured Shorthold Tenancies
The bill will move to a similar tenancy structure where all assured tenancies are periodic removing fixed term tenancies.
Impact: Tenants will be required to provide two months’ notice to end the tenancy allowing both parties to respond to changing circumstances.
Abolishment of Section 21 Evictions
The proposed legislation seeks to abolish so-called “no-fault” evictions under Section 21 of the Housing Act.
What’s Changing: Landlords will no longer be able to terminate tenancies without providing a valid legal reason.
Impact: A greater reliance on Section 8 eviction grounds, such as tenant rent arrears, antisocial behaviour, or the need to sell or occupy the property yourself.
Tip: Review your current tenancy agreements and familiarise yourself with revised Section 8 grounds to ensure compliance.
Strengthening Section 8 Evictions
Enhancements: Streamlined processes for landlords to regain possession under certain conditions, including:
- Wanting to sell the property.
- Moving back in for personal use.
- Dealing with significant rent arrears (thresholds and processes are being clarified).
Impact: Documentation and evidence will become even more critical in eviction proceedings.
Introduction of a Property Portal
Purpose: A centralised database to register rental properties and ensure compliance with safety and legal standards.
For Landlords: Mandatory registration of properties, with penalties for non-compliance.
Tip: Start organising your property documentation now to avoid last-minute scrambles.
Enhancing Tenant Rights
Ban on Discrimination: Landlords will no longer be able to refuse tenants based on characteristics such as receiving housing benefits (“No DSS”) or having children.
Practical Implications for Landlords
Increased Tenancy Security for Tenants: While this reduces turnover, it also requires landlords to have a robust strategy for managing longer-term relationships with tenants.
Higher Compliance Standards: From safety regulations to mandatory registration, the onus is on landlords to stay compliant and avoid penalties.
Potential for Increased Costs: Additional administrative work, potential property upgrades, and compliance fees may increase overhead.
What’s Next and How Can Oakwood Help?
The bill was introduced in the House of Commons on 11 September 2024. The bill’s second reading went ahead on 9 October 2024 with debates and amendments ongoing in the report stage.
Implementation is expected to roll out in stages starting summer 2025 although there is no prescribed timeframe.
Here at Oakwood, we are uniquely positioned to help landlords navigate these changes effectively, ensuring compliance while minimising disruption.
Our property management team is ready to guide you through the Renters’ Rights Bill changes. Get in touch with us today.
Lydia Sirovica BA (Hons) PgD
