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We knew it was coming…….and we wanted to fill in the blanks about just what this means for landlords.
The Renters Reform Bill has officially been heard in Parliament. The main outcomes being the government’s commitment to ‘bring in a better deal for renters’ and abolishing ‘no fault’ evictions. It aims to provide tenants more rights and protections in the private rental sector.
The government feels this will help deliver ‘safer, fairer and higher quality homes’ to renters.
Provide a fair deal to Tenants
Landlords will only be able to evict a tenant under ‘reasonable’ circumstances. Rent increases will be limited to once a year and the minimum notice that a landlord must provide for any increase will be raised to 2 months. The new reform will provide tenants with more time to find a new property when facing eviction.
It will provide tenants with more power to challenge unjustified rent increases and any poor practices in terms of repairs, etc. Longer tenancies will also be introduced. Deposits will be protected in a government-backed scheme.
It promises to end unfair evictions and ensure there are no loopholes that landlords can take advantage of. At this point, tenants are not able to terminate a tenancy agreement if the property is not maintained.
Provide a faster redress for landlords
The Reform is claiming it will protect 2 million landlords across the UK, making it easier for them to ‘recover’ properties from non-paying tenants, or anti-social tenants, etc. Landlords will also be able to legally refuse to accept tenancies that have children or are in receipt of government benefits.
A new ‘Section 8’ will replace the current ‘Section 21’ and all landlords will be required to join the ‘Landlord Redress Scheme’ (you won’t be able to let out or advertise a property if you don’t join). All landlords will be legally required to register their property on the new property portal.
From a landlord point of view, the Section 8 will provide the landlord with more strength to end a tenancy agreement early if they have a legal reason to carry this out. As an example, eviction will be mandatory when a tenant has been in 2 months rent arrears, three times within a 3 year period, regardless of the debt balance (prior to any Hearings).
A landlord can also now apply Section 8 to a tenancy if they want to sell a property. This can be applied after a tenant has been living in the property for a minimum of 6 months.
Rent caps may be introduced in certain areas and landlords are responsible for providing an EPC (Energy Performance Certificate).
Provide more details on ‘pets with lets’ will work in the future
Tenants will be provided with the ‘legal right’ to request a pet within their home.
A landlord must then give this reasonable consideration. The tenant is required to make the request in writing to the landlord including a full description of their pet/planned pet.
Landlords will have the power to request that the tenant obtains insurance to cover the risk of pet damage to the property OR they have to be willing to pay the landlord a reasonable amount to cover the landlord’s insurance regarding pet insurance.
A landlord must accept or refuse the pet request by the 42nd day ‘after the date of the request’. This can only be extended for 7 more days, at the request of the landlord requiring more information.
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