How the Renters Rights Bill affects you

The first reading of the Renters Rights Bill in the House of Commons has brought welcome clarity to the Government’s plans to reform our sector. Although we await further detail on all of these provisions, as the bill continues its parliamentary journey, our Lettings Specialists and expert teams are well prepared for these changes and are on hand to guide you through the detail.

Much of the bill remains the same as the previous proposed bill and we have summarised the key proposals for you:

• There is a commitment to ban Section 21 notices immediately the bill becomes statute. Landlords can gain possession under Section 8 grounds for certain specified reasons such as wishing to sell or move back in and can do so by giving 4 months’ notice after the first 12 months of the tenancy.
• Reassuringly, Matthew Pennycook has said that the Government will work alongside the courts to ensure they can cope with extra workload by the time the bill becomes law.
• The bill will see fixed term tenancies replaced by periodic or month to month tenancies with tenants able to give two months’ notice to end their tenancy from day 1. Landlords should be reassured that the average tenancy length on the UK is 20 months, and this is driven by tenant choice and requirement so we believe it is unlikely that we will see a significant number of shorter tenancies.
• Rent increases can still take place annually by giving 2 months’ notice and using the existing Section 13 notice to do so. Tenants will have the right to challenge the initial rent within 6 months of the tenancy starting or a proposed rent increase by taking it to a tribunal who will base their decision on what they believe the market rent to be.
• As before, landlords cannot unreasonably withhold consent to a tenant having a pet but a reasonable ground to refuse would be if doing so would breach the head lease of a leasehold building. There is also a provision for additional premiums to be taken to protect against pet damage.
• The requirement to belong to an Ombudsmen scheme also remains, with clarification that this membership must be in place in order for a property to be marketed for let.
• New provisions include a ban on bidding wars. Rents must be specified when advertised and accepting an offer over the specified amount will not be allowed.

We remain confident that once the full detail of the bill is known, that the market will adapt and continue to thrive as it has post previous changes in legislation. The next reading is on 9th October but if you have any queries or concerns in the meantime please don’t hesitate to contact us.