Published: 16/10/2024
Renters Rights Bill 2024The Renters Right bill is set to introduce changes to the private rental sector, aiming to enhance living standards and tenant security. On 9th October 2024 the bill successfully passed it’s second reading in the House of Commons and will now proceed to the committee stage. It hasn’t come into effect yet but is expected to become law in Spring 2025.
The bill will have limited affected on Landlords with high quality properties provided that they are appropriately managed by an experienced agent with access to great tenants who treat the property with respect and pay rent on time.
WHAT THE RENTER'S RIGHTS BILL MEANS FOR LANDLORDS?
The Bill will bring a number of changes. The major ones to note are the following:
Pets in property – Tenants will have the right to request permission to keep pets in the property and Landlords will not be able to have a blanket ban on pets or refuse without an explanation. Landlords will be able to say no if they have a valid reason and they can request that Tenants take out pet insurance.
Restrictions on Rent Increases – Landlords will be able to increase the rent once a year in line with market rates. Tenants have the right to contest the proposed rent it if they believe it’s unfair.
No more fixed term tenancies – All tenancies will move from a fixed term (for example – 12, 18 or 24 months) to a periodic. This effectively means that there is no set end date and the tenancy can be terminated at any time with 2 months’ notice.
Evictions – There will be a ‘no fault’ eviction ban so landlords will need a valid reason to evict tenants under the Section 8 notice, for example rent arrears or wanting to sell the property. Section 21 notices will be scrapped.
No Bidding wars – Landlords will not be able to accept offers from Tenants that surpass the asking price. This means accurate pricing and valuations will be essential.
Portals – All Landlords will be required to register on a new digital property portal.
WHAT THE RENTER'S RIGHTS BILL FOR?
The objection for the Bill is to provide better protection to renters whilst keeping Landlords in check and ensuring they are meeting the correct level of compliance and standards.
Discriminations – The Bill is seeking to remove discrimination against “no DSS” and “no children” policies. DSS customers will still need to pass the affordability requirement on referencing which means annually earning or receiving at least 30x the monthly rent.
Home Standards – A new Decent Homes Standard will be published and applied to the private rental sector.
Tenant Security – By scrapping evictions under Section 21 the Bill aims to provide tenants with stability and confidence in no sudden evictions.
Rent Increases – A rent increase can only be proposed once a year with two months’ notice. Tenants have the right to contest this through tribunal if they feel it’s unfair.
Landlord Ombudsman – A Landlord Ombudsman will be introduced to handle tenant complaints and offer resolutions.
WHAT LANDLORDS SHOULD DO TO PREPARE FOR THE RENTERS RIGHTS BILL?
Even though the Bill is unlikely to take effect until Spring 2025 it is always best to be prepared.
Now more than ever Landlords and Agents must be selective when finding tenants. At Alwyne Estates we follow strict and thorough referencing guidelines to ensure we know exactly who is planning to live in the property.
It is crucial that your property is in its optimal condition and a standard high enough for a Tenant to live in it. Now is the time to ensure any maintenance issues are under control and taken care of, especially damp or mould.
We recommend that all landlords sign up to a rent protection scheme, that way if a Tenant fails to pay rent you are always covered and protected. Whilst rent arrears are a risk to all Landlords already, the new laws may mean it will take longer to regain possession of the property.
WHAT ALWYNE ESTATES WILL BE DOING TO PREPARE FOR THE RENTERS RIGHTS BILL
We have been set in Islington for over 25 years and during this time we have obtained great knowledge of the local area and rental market. Our Lettings Negotiators ate experienced in giving accurate rental valuations achieving the best incomes for Landlords.
We recommend that all Landlords take out Rent Protection cover.
We have a thorough and highly in depth referencing system.
We have a renewals and rent review team who are familiar with the market and propose the appropriate rent increases to Landlords and Tenants.
We have a highly skilled management and compliance team who will keep themselves and Landlords up to date with any new laws and compliance. Once the Bill is enacted we will ensure to supply all Landlords will detail guidance on how to set up to the Landlords portal.
We will be proposing a guarantor requirement to any Tenant who hasn’t rented previously, has an annual income lower than the referencing requirement or needs general support with the Tenancy.