FAQs for Landlords: Renters Rights Bill 2024
FAQs for Landlords: Renters Rights Bill 2024
What is the Renters Rights Bill 2024?
The Renters Rights Bill 2024 is a legislative reform aimed at transforming the private rented sector in England. It introduces several key changes with the intention of enhancing tenant protections and improving the overall renting experience of tenants. 1 2.
What are the main provisions of the Renters Rights Bill 2024?
The bill includes several significant reforms:
- Abolition of Section 21 ‘no-fault’ evictions: Landlords will no longer be able to evict tenants without providing a valid reason 1 2.
- Introduction of periodic tenancies: All private rented sector tenancies will be periodic assured tenancies with no fixed end date, providing more flexibility for tenants 2.
- Rent increase limitations: Rent increases will be limited to once per year, with landlords required to give at least two months’ notice 2.
- Prohibition of rental bidding: Landlords and letting agents must publish an asking rent and cannot accept offers above this price 2.
- Right to request a pet: Tenants can request to keep a pet, and landlords must consider this request reasonably 2.
- Anti-discrimination measures: It will be illegal for landlords to discriminate against tenants who receive benefits or have children 2.
How will the abolition of Section 21 affect landlords?
The abolition of Section 21 means landlords must provide a valid reason to evict tenants, such as rent arrears or breach of tenancy agreement. This change aims to provide tenants with greater security and stability in their homes. From our own experience, it is rare that a landlord seeks possession via a Section 21 notice without good reason, such as rent arrears or that they wish to sell the property. The Section 8 process will still be available. 1 2.
What are the new rules regarding rent increases?
Under the new bill, landlords can only increase rent once per year and must provide a statutory rent increase notice at least two months in advance. Tenants can challenge above-market rent increases through the First-tier Tribunal (Property Chamber) (FTT). The current notice period is one month, so this will mean landlords need to diarize increases earlier. The Renters Rights Bill will make it easier for tenants to challenge rent increases and it remains to be seen how quickly the FTT will be able to process appeals. 2. It is inevitable the rent increase process will become more drawn out as tenants seek to appeal increase at no cost to themselves. Landlords (or their agents) will also need to be able to evidence their opinion of market rent at Tribunal.
How does the bill address the issue of rental bidding?
The bill prohibits landlords and letting agents from inviting, encouraging, or accepting offers of rent above the published asking price. This measure aims to prevent unfair competition and ensure transparency in the rental market 2.
While demand for rental properties has outstripped supply locally, the practice of rental bidding is not particularly prevalent. We consider this is more of a ‘London issue’. However, it will be important for landlords to ensure they maximise the rent they can obtain from day one, especially if future rent increases may be delayed due to tenant appeals. It is therefore likely that asking rents increase, perhaps an unwelcome consequence of the Bill as far as tenants are concerned.
What are the implications of the right to request a pet?
Tenants can request to keep a pet, and landlords must consider this request reasonably. Landlords can require insurance to cover potential damage caused by pets 2. Unless there is a valid reason for a pet not to be permitted, such as a prohibition in an overriding lease, it will be difficult for landlords to refuse tenant requests for pets.
How does the bill protect tenants from discrimination?
The bill makes it illegal for landlords to discriminate against tenants who receive benefits or have children. This measure ensures equal access to housing for all tenants 2.
What should landlords do to prepare for these changes?
Landlords should review their current tenancy agreements and practices to ensure compliance with the new legislation. It is also advisable to stay informed about the bill’s progress and seek legal advice if necessary 3 4. James and Sons subscribe to a market leading provider for our tenancy agreement. Our standard tenancy contract is under regular review and will be updated once full details of the proposals are known. It is essential that landlords undertake thorough vetting and referencing of tenants – under the reforms it will be more difficult and take longer to obtain possession, so securing the best tenants is more important than ever.
James & Sons will also be recommending that our landlord clients consider rent guarantee and legal insurance. The level of rent arrears after which a landlord can seek possession is to increase from two to three months. Allowing for the subsequent notice period and the inevitable delay for a court hearing, landlords could be looking at a minimum of nine months with no rent while they seek possession. The bill doesn’t necessarily increase the risk of tenant default, but the overall downside risk is greater.
When will the Renters Rights Bill 2024 come into effect?
The bill is currently making its way through Parliament and is expected to come into force between April and October 2025 3.
Where can landlords find more information and support?
The Renters Rights Bill represents the most significant changes to the residential lettings sector for decades. It is important that landlords are are prepared for what is coming.
Landlords can attend training sessions and courses offered by various organizations to understand the new legislation better. Additionally, they can refer to government publications and legal advisors for detailed guidance 3 4.
James and Sons are following progress closely, including attending training events, seminars and webinars. Please do not hesitate to contact any of the property management team if you have any further questions.