Renters’ Rights Bill Update From Gallant Richardson Estate Agents & Letting Agents in Colchester
A major reform of the Private Rental Sector (PRS) has been discussed and debated by politicians for some years, both the Conservatives and more recently the Labour Party have promised reform for renters.
The Renters’ Rights Bill, introduced by Deputy PM and Housing Minister Angela Rayner, is the biggest overhaul of the PRS since the 1980s, its currently in the House of Commons having recently received its second reading.
Angela Rayner claims the Bill will give ‘greater security and protections for millions of renters’, and promises to ‘make the bill law as soon as possible’.
With its ban on Section 21 ‘no fault’ evictions, the bill picks up what the previous Conservative Government failed to do in its equivalent Renters (Reform) Bill, which was lost when the General Election was called in May.
The Bill’s Current Status
The Parliamentary Bill was debated at second reading on October 9, 2024 and has now been sent to a committee which will scrutinise the measure line by line.
No date has been set for this to start but a statement on the Parliament website suggests this will conclude, with the Bill returning to the Commons by Thursday, November 28.
Responsible Landlords
For responsible landlords with good quality properties, the Bill will have limited material impact, provided they are properly supported by a knowledgeable, experienced and capable agent with access to good quality tenants who pay their rent on time and treat the property they live in with respect.
Choosing the right agent to manage your property will be more important than ever before, but if done correctly, being a landlord will still offer a great return on investment and potential capital growth.
What The Renters’ Rights Bill Means For Landlords
The Bill will bring in a number of changes that both agents and landlords will need to be prepared for. The main ones are:
No More Fixed-Term Tenancies: Instead of running for a set period of time (e.g. 12, 18 or 24 months) all new tenancies will be ‘periodic’ from the outset. This means that the tenancy is, in effect, open-ended and tenants will be able to end their tenancy with two months’ notice at any time.
Restrictions on Rent Increases: Landlords will be able to increase rents once per year provided that the increase reflects the market rate. Tenants will have the right to contest any proposed increase they believe to be unfair.
No Bidding Wars: Landlords will not be able to accept offers from tenants that exceed the advertised asking price, meaning that accurate pricing will be essential
Enhanced Eviction Grounds: With ‘S21’ evictions banned, landlords will need to have a reason to evict tenants under Section 8. Accepted reasons will include rent arrears and the landlords’ need to sell or move into the property.
Property Portal: All landlords will be required to register on a new digital property portal.
Pets in Properties: Tenants will have the right to request permission to keep pets in rental properties and landlords will not be able to have a blanket ban on pets. To protect themselves, landlords will be able to impose conditions, such as requiring insurance for pet-related damage.
Need Help Renting a Property
If you are considering renting a property in or around the Colchester area, please feel free to call me at our Colchester office, either for an informal chat about how the new legislation will affect you as a landlord, the current market values or for any other help or advice.
Tim Wade – Gallant Richardson
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