Landlords- are you ready?
As part of our series of updates surrounding the proposed changes to the rental market for residential landlords and tenants under the Renters Rights Bill, we look at what implications there are for landlords beyond the abolishment of the Section 21 procedure.
With the Renters Rights Bill reaching the committee stage in the House of Lords, the long awaited overhaul to the private rented sector in the England appears to be within grasp. Now is the time for landlords to be taking proactive steps to prepare themselves for the changes that they will face.
Whilst many landlords are aware of the changes being implemented to end “no-fault” evictions and fixed-term tenancies being replaced by a new periodic tenancy regime, there are additional important changes that landlords should prepare for and implement in readiness.
Part of the Bill’s aim is to have protection against unfair rent increases. All rent increases in the private rental sector will follow the same process. Landlords/agents will be limited to one rent increase per annum and may not always be able to rely on contractual provisions within a tenancy agreement. Therefore, the statutory procedure under Section 13 of the Housing Act 1988 will need to be followed more regularly. Doing so, will give rise to a right of challenge by the tenant of any proposed rent increase.
For the first time in the private rental sector, the Bill seeks to introduce a Decent Homes Standard. The purpose being to ensure that tenants benefit from homes that are safe and decent. The Government hopes that implementing such standard will help to “establish level playing field”. By introducing a legal duty on landlords to ensure the condition of their properties being let are to a decent standard, the Government hopes to incentivise landlords to improve and maintain tenant’s living conditions.
The Bill is “to make provision changing the law about rented homes, including provision abolishing fixed term assured tenancies and assured shorthold tenancies; imposing obligations on landlords and other in relation to rented homes and temporary and supported accommodation; and for connected purposes”. But have the proposed changes gone a step too far in seeking to balance the interests of both landlord and tenants by falling rather heavy in support of tenants? The team at Butcher Andrews are on hand to assist landlords and tenants in navigating their way through what is considered to be the most significant change to the private rented sector in England since the Housing Act 1988.
We continue to monitor the progress of the Bill on its journey to receiving royal assent and coming into force later this year. It’s always best for landlords to plan for the issues and challenges they may be faced with by reviewing existing agreements, policies and procedures at this stage before the Bill comes into force. Similarly, tenants may wish to understand what their position and rights will look like in the not too distant future.
If you require advice on how the Bill may affect an existing tenancy, or if you plan on renting in the future, please do not hesitate to contact our experts Amanda Nudds (01328 852804) or Shaun Taylor (01328 621120) to discuss.
