LANDLORDS - Are you aware of the Renters Rights Bill that is due to come into place 2025?
This is the biggest change in the Private Rented Sector for 30 years. Please see a few key points of the Renters Rights Bill and how this will affect you as a landlord:
Landlord Database
A national landlord database is due to be introduced where landlords will legally have to register all properties they do wish to rent out, whether this be via an agent, independently or to extended family or friends. This will require you, the landlord or your managing agent to stay fully compliant on. The landlord or agent will be liable for uploading gas, electrical and energy performance certificates, as well as ensuring new certificates are uploaded when the originals expire. There will be additional documents and data the landlord will legally have to provide.
Decent Homes Standard and Awaab’s Law
Landlords will have to ensure their properties are safe, secure and of a minimum standard fit for tenants to live in. Under Awaab’s law landlords who are in breach for providing unsafe, hazardous properties to tenants will be prosecuted. Landlords will be provided certain timescales within which hazards must be addressed. Failure to keep your rental property in a ‘minimum decent standard’ will result in fines of up to £40,000, a banning order or a Rent Repayment Order (RRO).
In-tenancy rent increases/ Bidding
In-tenancy rent increases will be limited to once per year to a maximum of market value - landlords will be required to provide 2 months’ notice to increase rent. Any increase deemed ‘unfair’ can be challenged by tenants via a First Tier Tribunal. Bidding wars – pitting tenants against each other to obtain a higher rent will be unlawful and therefore, the property can only be let for the marketed price. No offers over the asking price will be legally acceptable. It’s likely this will be monitored via the Local Authority / Trading Standards. If landlords do increase rent incorrectly or accept bidding offers over the advertised figure, the landlord will be fined.
The Tenants Rights to Request Pets and Unlawful Discrimination
Tenants with pets, children, single income and claiming universal credits, wishing to apply for properties, will be looked at very carefully. If the landlord is in breach, they will face a fine. The government will also be providing tenants who are facing eviction with free legal advice.
Changes to Section 8 Notice and Abolishing in Section 21
Abolishing the section 21 and changing tenancy agreements to periodic from AST’s is seen as one of the most significant changes in the sector.
Landlords will no longer be able to serve a section 21 (no fault notice) on their tenant without reasonable grounds.
If reasonable grounds are used under section 8, the landlord will have to provide evidence, will have to abide by new notice periods for each of the grounds to be relied upon and adhere to restrictions to be put in place for Grounds 1, 1A and 1B.