Renters Rights Bill – food for thought for Landlords
You may be aware of the Government’s plans to introduce a reform to residential lettings which is currently being discussed as the ‘Renters Rights Bill’. Whether you are a landlord or a tenant, this is going to affect you when it comes into force whether you have an existing tenancy or are entering into a new tenancy in future. Whilst there are many elements of the proposed reform being discussed, in this article we focus on the impact for a landlord who either currently has, or is currently thinking about setting up, a tenancy of their property.
Currently any new Assured Shorthold Tenancy agreements must have a minimum 6 month initial fixed term. Under the new proposals, Assured Shorthold Tenancies will be reclassified as ‘periodic assured tenancies’ and will no longer be required to be subject to a fixed minimum term. A tenant could therefore enter into a new tenancy and then serve notice to terminate if they want to, leaving the landlord with no guarantee of any lengthy period of occupation.
The flip side to this is that the proposed changes which will see an end to the no fault eviction currently used by a landlord serving a Section 21 notice and giving a tenant 2 months to vacate. Under the proposed Act, this will no longer apply and a tenancy will only be able to be terminated on one of the existing (and proposed new) grounds of the Housing Act. Put simply, a landlord would no longer be able to simply terminate a tenancy without a reason and must therefore rely on either a breach by the tenant or with one of the grounds being applicable. This could create long term occupation if a tenant doesn’t want to move, hasn’t breached their agreement and none of the grounds apply to the landlord.
There has been talk of the Bill receiving Royal Assent before Summer and then being implemented within a few months of that but at the moment nothing has been agreed and there isn’t any clear indication on when this might all be implemented. At this stage, it is intended to apply and effect all tenancies (including new tenancies and those pre-dating the new Act regardless of whether they are still within their fixed terms or not).
If you require advice on how the proposals may affect an existing tenancy you have or your plans on renting for the future, please do contact either Amanda Nudds (01328 852804) or Shaun Taylor (01328 621120) to discuss your personal circumstances further.
