Date Published 17 January 2025
On the 14th of January 2025, the Renters' Rights Bill has successfully been approved through its third reading in the House of Commons. As part of our ongoing commitment to keeping you informed, we wanted to update you on the latest developments regarding the Bill, which is now currently making its way through Parliament.
Following passing its third reading in the House of Commons, the Bill is now moving to the House of Lords for further consideration. If accepted, the new rules are expected to come into effect by late Summer or Autumn this year. Below is a summary of the key changes that may affect your properties and our management of them:
Key Changes Introduced by the Bill:
Abolition of Section 21 'No-Fault' Evictions
Under the new guidelines, 'no-fault' evictions will no longer be permitted. Instead, landlords will need to use Section 8 grounds, which require a valid reason such as rent arrears or breach of tenancy terms, to end a tenancy.
Limits on Upfront Rent Payments (NEW CHANGE)
Tenants cannot be required to pay more than one month's rent upfront. This is intended to ease financial barriers for renters but may require adjustments in planning for certain tenancies.
Private Rented Sector Ombudsman
A new ombudsman service will be introduced to resolve disputes between landlords and tenants, providing an alternative to court proceedings. We will represent your interests and liaise with the ombudsman when necessary.
Introduction of a Decent Homes Standard
The government is introducing a new "Decent Homes Standard" for the private rented sector. This will require all properties to meet specific safety and habitability requirements. We are reviewing all managed properties to ensure compliance with these standards in advance of the changes.
Impact on Student Tenancies
For student properties, the Bill includes a restriction on signing tenancy agreements more than six months before the start of the tenancy. While this change aims to protect students from committing too early, it may impact planning for the academic year. We will continue to manage tenancy timelines carefully to minimise any disruption.
What Happens Next?
The Bill is now being discussed and further reviewed in the House of Lords; we are awaiting further details on its final form. In particular, we are watching closely for any exemptions or amendments for student tenancies, which we understand are a significant part of our portfolio.
How We're Preparing on Your Behalf
Tenancy Reviews: We are auditing all managed tenancy agreements to warrant compliance with the proposed legislation.
Maintenance Checks: We will ensure all properties meet the new Decent Homes Standard well ahead of time.
Tenant Communications: We will aim to keep tenants informed about their rights and responsibilities under the new laws, allowing smooth transitions where necessary.
Support for Our Landlords
We understand that these changes may raise questions or concerns. Rest assured, we are actively staying on top of developments and will continue to represent your interests. As always, we're here to provide guidance and ensure a seamless management experience for your properties.
