The Renters’ Rights Bill

The Cedar Crest Team
Jun 30
2 min read

Updated: Jul 8

What landlords need to know about sweeping changes in the rental landscape

The renters' rights Bill is poised to enact sweeping changes in the rental landscape,

significantly affecting landlords throughout England. With an emphasis on strengthening tenants’ rights, the proposed legislation will compel landlords to adjust their practices to ensure compliance. Here’s what you should consider to stay ahead

of the changes.

FIXED-TERM TENANCIES ARE ON THE WAY OUT

One major reform is the replacement of fixed-term tenancies with periodic tenancies. This change means that tenants will no longer be bound by a specific duration, such as six or twelve months, and can leave by providing notice according to the new rules. For landlords, this results in a more flexible market but also creates uncertainty

regarding how long a tenant might stay in their property.

For instance, if you previously depended on fixed terms to plan for property maintenance or

manage your finances, you might need to incorporate more flexibility into your schedule and budget. While this shift benefits tenants, it also necessitates that landlords adjust to less predictable tenancy durations.

EVICTIONS MUST BE JUSTIFIED

Under the new Bill, landlords will lose the ability to evict tenants without giving a valid reason. This marks a significant departure from the current “no-fault” Section 21 evictions,

which provide landlords with a straightforward method to regain possession of their property.

For example, evicting a tenant due to disruptive behaviour or repeated late payments will

now necessitate documented evidence and legal justification. This change requires a

proactive strategy in tenant management to ensure that, if an eviction becomes necessary,

you have the appropriate documentation ready.

SECTION 8 RENT ARREARS GROUND REFORMS

Another key change involves amendments to the Section 8 eviction process, particularly regarding the rent arrears ground. Landlords are still able to evict tenants for arrears, but the thresholds and processes are expected to become more stringent, providing tenants with more

leeway before facing eviction.

Imagine a tenant who is falling behind on rent payments, under the amended rules, you may need to wait longer and meet stricter criteria before pursuing eviction. Ensuring clear and consistent communication regarding rent obligations with your tenants is essential for minimising disputes.

RENT REVIEWS ONCE A YEAR

The Renters’ Rights Bill will also limit landlords to raising rents only once a year, with appropriate notice requirements.

This aims to provide tenants with greater financial stability and protection against sudden,

frequent rent increases. For landlords, this entails planning rental income more meticulously. For instance, if property maintenance costs increase significantly, you’ll need to factor this into the scope of a single annual rent review. Careful budgeting will become even more essential.

PET-FRIENDLY PROPERTY RULES

Another significant change is that landlords can no longer deny tenants’ reasonable requests to keep pets without a valid reason. While this adjustment aims to enhance tenant wellbeing and flexibility, it also brings new considerations for landlords.

For example, if a tenant requests to keep a dog, you cannot refuse arbitrarily. You need to

provide a legitimate reason, such as potential property damage. Investing in pet agreements or requiring insurance that covers pet-related damages could help

protect your interests.

STRICTER PROPERTY CONDITION STANDARDS

The bill will also align legal minimum requirements for property conditions and repairs with stricter standards. More robust regulations mean that landlords must ensure their properties comply with higher health and safety benchmarks, while also responding promptly to

repair needs.

For example, landlords with older properties may encounter higher costs to bring

these properties up to date with new standards.

Routine property inspections will become increasingly important to evade penalties and uphold tenant satisfaction.

REGISTRATION AND OMBUDSMAN MEMBERSHIP

Lastly, landlords must register with a government scheme and join an ombudsman service.

This will ensure accountability and offer tenants a straightforward way to address complaints.

This new requirement adds an administrative layer for landlords.

Nonetheless, participating in an ombudsman service can enhance your reputation as a

responsible landlord. For instance, having a transparent complaints process may make your property more attractive to prospective tenants.

STAY COMPLIANT AND ADAPT

With the Renters’ Rights Bill poised to transform the rental sector, it is crucial for landlords to stay informed and adaptable. By anticipating these changes and taking proactive steps-such as revising tenancy agreements and improving property management practices-they can minimise disruption.