The Renters’ Rights Bill

Key provisions of the Bill include:

• Abolition of Section 21 ‘no-fault’ evictions: Landlords will no longer be able to evict tenants without providing a valid reason, thereby offering tenants greater security. ​
• Introduction of periodic tenancies: Fixed-term assured tenancies and assured shorthold tenancies will be replaced with periodic tenancies, allowing tenants to end their tenancy with two months’ notice. ​
• Implementation of the Decent Homes Standard: This standard, previously applicable to social housing, will extend to the private rented sector, requiring landlords to maintain properties that meet specific quality criteria. ​
• Prohibition of rental bidding wars: Landlords will be banned from accepting rent offers higher than the advertised amount, preventing prospective tenants from bidding against each other.
• Ban on in-tenancy rent increases: Rent increases during a tenancy will be prohibited, ensuring tenants have predictable housing costs. ​

For landlords, these changes will necessitate adjustments in property management practices:​

• Revised eviction procedures: With the removal of Section 21 of the Housing Act 1988, landlords must rely on specified grounds for possession, such as tenant rent arrears or property damage. ​ This will make it more difficult and costly for landlords to obtain possession, particularly during the transition period when the new legislation will undoubtedly be tested in the courts. For example, one ground for possession will be that the landlord is selling the property, but commentators have already questioned how this will be proved and whether simply listing the property on the market suffices.
• Property maintenance obligations: Compliance with the Decent Homes Standard will require landlords to ensure their properties meet defined quality benchmarks. It is likely that landlords will have to ensure that the property has an EPC rating of at least C (for most cases).   This is inevitably going to increase costs for landlords and it is not certain as to whether if remedial works are necessary, where the tenants can go if the property is not fit for occupation in the meantime.
• Rent capping practices: The prohibition of rental bidding wars and in-tenancy rent increases will require landlords to set and maintain rents transparently and consistently. There will be limits on rent increases generally and for the tribunals to be the forum for rent determinations.  It is not known as to how the government will deal with the large increases in workloads for the tribunals.

Staying informed about the Bill’s progress and understanding its implications is crucial for landlords to navigate these upcoming changes effectively. The above is not an exhaustive list as there are many changes afoot.   The landlord and tenant landscape as we know it since 1988 is due to change dramatically.

Here at Greenwoods Legal LLP, we can help guide you through these changes. Get in touch with Chi and Harry to get the advice you need.