How the Renters’ Rights Bill will affect landlords

On October 9 the Renters’ Rights Bill will see its second reading. The first took place on 11 September with the bill’s introduction to the House of Commons. The second reading will allow MPS to consider the bill in more detail, the broader points of which were revealed at the end of September.

The bill aims to improve the systems for both the 11 million private renters and the 2.3 million landlords in England. However, while it gives several additional powers to tenants many landlords are worried about the shift in rights.

1)    Abolishment of Section 21 ‘no fault’ evictions

The abolishment of Section 21 ‘no-fault’ evictions has long been seen as one of the most significant parts of the bill and was also a feature of the previous government’s Renters Reform Bill before it was abandoned last year.

Tenancies will also move to a simpler periodic structure rather than the existing system of fixed term assured tenancies. The government has said both moves will allow for greater tenant security. This will make it less clear for landlords when their tenants might be leaving, however, since they will need to give only two months’ notice to end the tenancy.

However, clear and fair possession grounds will ensure landlords can still recover their property when reasonable, the government says. This will be subject to an initial 12-month protected period at the beginning of a tenancy during which landlords can’t evict tenants to move in themselves or sell the property. They will also be required to give four months’ notice when they want to use these grounds.

2)    A right to have pets and an end to discrimination on tenants who are on benefits or have children

Landlords will now have to allow pets in the property unless they can provide reasonable reasons for refusal.  Discrimination against those who receive benefits or have children will also be disallowed under the new bill.

3)    The extension of Awaab’s Law to the private rented sector and application of the Decent Homes Standard

Awaab’s Law will give clear legal expectations about how quickly landlords will be expected to rectify serious hazards within a home, while the application of the Decent Homes Standard will help to ensure landlords are providing quality homes to tenants.

4)    Restriction on rent rises and a ban on bidding wars

Rents will also be more closely controlled, particularly where rent rises are designed to force tenants out in ‘backdoor’ evictions. Landlords will only be able to increase rents to market prices for their properties once a year by serving a ‘section 13’ notice with two months’ notice of it taking effect.

If the tenant disagrees, then an independent tribunal will be able to make a judgement if required. Rental bidding will also be forbidden with landlords instead required to publish an asking rent and it being illegal to ask for or accept offers made above the rate.

5)    A new Private Rented Sector Landlord Ombudsman and Private Rented Sector Database

The new ombudsman service will help to handle tenants’ complaints about landlords, while the Private Rented Sector Database will help landlords understand their legal obligations and demonstrate compliance. Landlords will have to be registered on the database to use certain possession grounds.

If you're considering stepping into the realm of property investment and exploring the role of a landlord, expert guidance is a must. Our team at Phillip Mann is here to support you every step of the way. With a comprehensive suite of services tailored for landlords, including innovative options like our Advanced Rent Option, we're committed to helping you thrive in the rental market. Connect with us today to delve deeper into how we can assist you in navigating the new MEES targets and maximising your returns.