The Renters’ Rights Bill: What You Need to Know
The Renters’ Rights Bill is a reform that is scheduled to become UK law next year. While the bill introduces new regulations, it also offers forward-thinking landlords a chance to get ahead.
The timeline for the Renters’ Rights Bill to come into effect is not firmly set yet. While the bill has been introduced and discussed, it is currently progressing through the legislative process. It can take several months or even longer before it is fully passed into law and implemented.
If you’re a landlord, it’s likely this upcoming change has you feeling anxious, which is understandable with any change. Despite the nerves you are feeling, we can help you stay informed on developments to ensure you’re prepared for any upcoming changes once the final implementation date is announced.
What are the planned key changes?
Here’s a quick overview of the key changes expected when the Renters Reform Bill is passed:
Abolishment of Section 21 "no-fault" evictions
Landlords will no longer be able evict tenants without a valid reason. This increases tenant security and reduces the risk of arbitrary evictions. Landlords will need to provide a valid reason for eviction, such as rent arrears or breach of tenancy agreement.
Whilst this might sound scary, having a management agent like Jacobs Steel will help navigate you through these changes. Tenants feeling secure in their homes isn’t a bad thing, and may even lead to better relationships between landlord and tenant; and good, longer-term tenancies.
More comprehensive possession grounds are also planned, so landlords can still recover their property (including where they wish to sell their property or move in close family) and to make it easier to repossess properties where tenants are at fault, for example in cases of anti-social behaviour and repeat rent arrears.
New mandatory ombudsman
A new independent ombudsman will be established to handle tenant complaints against landlords. Again, nothing to fear if you are compliant; and we’re always on hand to talk things through with you.
Rent increases and advance payments
Rent increases will be limited to once per year, and advance rent payments will be restricted to a maximum of six weeks. However, rents are typically only increased once a year as it is, either at renewal or by serving a Section 13 rent increase notice.
The government’s website, however, does state, “Nothing, however, in the Bill restricts landlords from raising rents to market value during a tenancy.”
New property portal for landlords and tenants
A new online portal will be created to provide information and resources for landlords and tenants. Taken from the government website:
“The Renters (Reform) Bill will introduce a new Private Rented Sector Database, which will support the future digital Privately Rented Property Portal service. All landlords will be legally required to register themselves and their properties on the Property Portal and could be subject to penalties if they market or let out a property without registering it and providing the required information.”
As letting agents, we will have a hand in ensuring that this new registration process is adhered to and will be by your side every step of the way.
Overall, the Renters Reform Bill aims to create a fairer and more balanced rental market, providing greater security and protection for tenants while also ensuring that landlords’ rights are respected.
Impact on Landlords and Agents
The plans to abolish Section 21 “no-fault” evictions means that landlords will need legitimate reasons, such as tenant misconduct or property repossession, if they need to end a tenancy. This shift will allow landlords to foster long-term relationships with responsible tenants, reducing vacancy rates and turnover costs.
Rent caps offer predictability in income growth, as they regulate rent increases during a tenancy. Although steep rent hikes are prevented, landlords benefit from more transparent and consistent tenancies, avoiding legal risks that come from non-compliance.
The bill also focuses heavily on maintaining property standards. Landlords must address safety issues like mould and damp to avoid fines. Safer, well-maintained homes can enhance landlord reputation and attract quality renters; as well as leaving the home in tip-top condition for a sale when the time comes.
Impact on Tenants
For tenants, the Renters’ Rights Bill brings increased security. With no-fault evictions removed, renters can feel more stable in their homes, knowing they cannot be evicted without cause. This extra security could help strengthen tenant-landlord relationships and contribute to a more stable rental market.
The rent cap helps tenants manage their finances more effectively by preventing sudden rent increases. Lastly, stronger maintenance obligations will ensure a healthier living environment.
Get Expert Guidance
The Renters’ Rights Bill aims to create a more equitable rental market, improving the overall rental experience for both tenants and landlords. As the bill reshapes the rental landscape, staying informed and up to date with changing legislation is key.
This is where it’s opportune for landlords to find a letting agent that has comprehensive letting & property management services that can provide the support that’s required to maintain confidence in being a landlord.
Now is the time to plan ahead. At Jacobs Steel, we are ready to support landlords through these changes and help navigate the new regulations. We have in-depth knowledge of property laws, regulations, and market trends, helping landlords stay compliant. Get in touch with us today and let us help you navigate this evolving landscape.
Jacobs Steel are estate and letting agents with offices in Worthing, Findon, Lancing, Shoreham-by-Sea and Hove. Our commercial sales & lettings team will guide you through the entire process, communicating with you every step of the way.
Disclaimer: While we aim to provide accurate information, this article is intended as a general guide and doesn’t constitute professional advice. Always consult with a qualified professional for specific guidance.
