As many of you are aware, the Renters' Rights Bill has been making its way through Parliament and has already undergone significant scrutiny. Currently, the bill is in a state of "ping pong" between the House of Lords and the House of Commons, which is delaying its final passage into law. However, recent developments suggest that we can expect the Royal Assent to be granted by late October or early November, following a series of political developments and party conferences.
The Current State of Play
After the bill passed through the House of Commons earlier this year, it was sent to the House of Lords for further review and amendments. As is common in legislative processes, this has led to a back-and-forth exchange between the two Houses - hence the term “ping pong.”
In this case, the House of Lords has raised several concerns, particularly around clauses dealing with eviction processes, rent increases, and tenant security of tenure. While some amendments have been proposed to balance the interests of both landlords and tenants, these have yet to be fully agreed upon.
Given that Parliament will break for the main political party conferences starting today (16th September), there’s limited time left for further debate and amendments. As a result, we now expect Royal Assent to be granted toward the end of October or early November, slightly later than initially anticipated.
What Does This Mean for Landlords?
Once the Renters' Rights Bill becomes law, it will have significant implications for landlords, particularly in terms of eviction procedures and tenancy management. Here are some key provisions likely to affect landlords:
1. Abolition of Fixed-Term Assured Shorthold Tenancies (ASTs)
- Fixed-term ASTs will be abolished, and all tenancies will become periodic. This change will offer tenants greater flexibility, but landlords may need to adjust their approach to managing tenancies.
2. Limitations on Rent Increases
- With the shift to periodic tenancies, landlords will only be able to raise the rent through Section 13 notices, which can only be served once per year. This limits the frequency of rent hikes.
3. Abolition of Section 21 Evictions
- Landlords will no longer be able to serve “no-fault” eviction notices to regain possession of their properties. This will require landlords to use other legal grounds for eviction.
4. Expansion of Section 8 Possession Grounds
- The government is adding new mandatory and discretionary grounds for possession to compensate for the abolition of Section 21, including grounds related to rent arrears and anti-social behaviour.
5. Ban on Rental Bidding Wars
- Landlords and agents will not be able to accept offers above the advertised rent price, aiming to prevent rental inflation caused by bidding wars.
6. Introduction of a Landlord Ombudsman
- A new landlord ombudsman will be established to help resolve disputes between landlords and tenants impartially and efficiently.
7. Creation of a Private Rented Sector Database
- The government plans to create a database that compiles information about landlords and properties, providing greater visibility and improving compliance with rental regulations.
8. Decent Homes Standard
- All rental properties will need to meet a minimum quality standard, ensuring they are safe, well-maintained, and suitable for tenants to live in.
9. Prohibition of Discrimination
- Landlords will no longer be able to refuse tenants based on their receipt of benefits or having children, promoting equality in the rental market.
10. Allowing Renting with Pets
- Landlords will not be able to unreasonably refuse tenants with pets, encouraging more pet-friendly rental options in the market.
What’s Next for Landlords? Milburys Is Here to Help
As we await the final stages of the bill's passage into law, it’s important for landlords to stay informed and begin preparing for potential changes. While the full details will only be confirmed once Royal Assent is granted, now is the time to consider how your business model and property management approach may need to adapt.
The government’s drive to create a fairer rental market is set to bring significant changes—not just for tenants, but for landlords too. Your rights, responsibilities, and day-to-day operations could all be affected.
At Milburys, we're here to guide you through it. Our team is on hand to help you understand what’s coming, what it means for you, and how best to respond. We’ll continue to keep you updated as more information becomes available.
In the meantime, if you have any questions or concerns about how these changes could impact your properties or obligations, don’t hesitate to get in touch. We're here to support you every step of the way.
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