The Renters’ Rights Bill gives far greater rights to tenants and there is a lot for landlords to digest, as Lodders’ property dispute resolution specialists explain.
All Assured Shorthold Tenancies (ASTs) will be replaced by Assured Tenancies as part of the reforms to the Renters’ Rights Bill. Unlike ASTs, Assured Tenancies have no fixed term and will usually run from month-to-month.
‘No fault’ evictions (Section 21 notices) will also be abolished. In simple terms, this means that landlords can no longer give tenants two months’ notice to terminate a tenancy without a specific ground to rely on.
The Renters’ Rights Bill sets out these specific grounds and we highlight some of these in more detail below.
Tenants meanwhile will be able to give two months’ notice to vacate at any time from the first day of the tenancy.
Under the Bill, landlords will not be able to rely on rent review clauses to increase rent. Instead, a Section 13 Notice must be used to advise tenants of a rent increase, and tenants can ask the First Tier Tribunal to determine if the increase is reasonable.
Landlords will be legally required to join the new Landlord Redress Scheme and must also register themselves and their properties on the Rented Property Portal. There are fines and penalties for failure to do so.
Finally, landlords cannot refuse to house families with children, or tenants who are claiming benefits. Pets are to be allowed unless there is a legitimate reason not to, for example if the property is a flat.
If you have a property that you rent out, remember that you will no longer be able to use a S21 (no fault) Notice, but there are several new grounds that can help you to end the tenancy if you need the property. Some of these are set out below:
These grounds each come with their own conditions, and it is important to note that many cannot be used in the first year of a tenancy.
To prepare for the new legislation in the Renters’ Rights Bill, landlords should review all existing tenancies, identify those that are ASTs and put in place a plan. This should include ensuring you have all the requisite statutory certificates including EPCs, Gas Safety Certificates and EICRs – and that any deposits are protected.
Lodders is helping landlords with tenancy reviews and checklists for both existing and prospective tenancies to ensure they are properly set up, and possession can be regained in the future if necessary. Find out how we can support you.
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