What Landlords and Agents Need to Know About the Renters’ Rights Bill

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The Renters’ Rights Bill is the new Labour government’s version of the previous government’s Renters (Reform) Bill. The aim of the bill, according to the Housing Minister Matthew Pennycook, is to “decisively level the playing field between landlords and tenants” and improve the rights for renters.

The proposed changes however are of concern to many landlords that fear the proposed changes will unfairly impact their ability to effectively manage their properties and obtain possession from unruly tenants in a timely and cost-effective manner.

In this article, we provide an overview of the proposed changes, how it may affect landlords and agents, when the new rules may come into effect, what rights landlords will retain to evict tenants and what landlords and agents may need to do now to prepare for the new rules.

Need help with recovering vacant possession of a property or any other landlord-tenant matters? Please contact our Property Litigation team who will be happy to advise.

Key points for landlords and agents to know about the Renters’ Rights Bill

  • ‘No-fault’ evictions (section 21 notices) will be abolished
  • Assured shorthold tenancies will be abolished so that all tenancies (irrespective of when they were granted) will be periodic (i.e. rolling) with a rent period of no more than a month
  • Residential landlords could be fined up to £7,000 if their properties fail to meet a ‘decent homes standard’
  • Tenants will have the right to request to keep a pet at the property which landlords, subject to the Tenant meeting the cost of pet insurance, will not be allowed to ‘unreasonably refuse’ such consent
  • A new ombudsman scheme will be created to resolve tenancy disputes which all private landlords must join
  • It will be illegal to discriminate against people with children or those in receipt of benefits when deciding to grant a tenancy of a private residential property
  • Private landlords will have a duty to investigate and fix health hazards in a specified time frame
  • Tenants will have the right to challenge unreasonable rent increases

What does the Renters’ Rights Bill mean for landlords and agents?

If the terms of the Renters’ Right Bill are implemented, it will have huge consequences for landlords and agents. Landlords will have far less control over their properties, there is likely to be an increase in costs in both complying with new obligations and evicting unruly tenants.

As covered above, landlords will no longer be able to evict tenants at the end of a fixed term as of right and will only be able to regain possession of their properties under certain limited circumstances (covered in more detail below).

When will the Renters’ Rights Bill become law?

While the Renters’ Rights Bill has only recently been introduced into the House of Commons, the Housing Minister has confirmed to the BBC that: “We hope [the bill] will make very quick progress through the House of Commons and that we have that new tenancy system in place within the first half or around summer next year.”

Will landlords still be able to evict tenants?

Landlords will still be able to evict tenants by serving and pursuing possession proceedings in accordance with Section 8 of the Housing Act 1988 (as amended). This allows landlords to seek possession but in limited circumstances where there are rent arrears, breach of the tenancy agreement, damage to the property, anti-social behaviour and if the landlord (or family member) wish to occupy the property themselves.

To pursue a claim for possession, the landlord will need to clearly set out and provide sufficient evidence of the grounds upon which they wish to rely in the Section 8 notice and, if the tenant does not vacate upon expiry of the notice, the landlord must then satisfy the court at a hearing that an order for possession should be made.

There is also a proposed change in the notice periods for each ground for which agents and landlords should be aware.

It will be important for landlords and agents seeking possession to seek expert legal advice before initiating proceedings to increase the chances of a smooth process and minimise the risk of legal issues.

What do landlords and agents need to do now to prepare for the Renters’ Rights Bill?

Landlords and agents will need to carefully consider how the legislation may affect their property portfolio. If a tenant is in occupation of a property which is at the end of or following expiry of a fixed term, it is sensible to consider pursuing your options now before the changes come into effect.

How Longmores can help landlords and agents with rental property possession proceedings

At Longmores, our Property Litigation team offer market-leading expertise in all private rental property matters, including possession proceedings. We can assist with securing vacant possession of properties before the Renters’ Rights Bill becomes law and we will be ready and able to assist landlords with possession proceedings under the new rules as and when required.

To discuss how we can help with recovering vacant possession of a property or any other landlord-tenant matters, please contact our Property Litigation team who will be happy to advise.

Please note the contents of this article are given for information only and must not be relied upon. Legal advice should always be sought in relation to specific circumstances.