Much discussion and debate has been taking place regarding the Renters’ Rights Bill (RRB) with many commentators hailing it as the most significant reform the private rented sector (PRS) has seen since the Housing Act of 1988.
Currently at the Committee stage, many of the provisions in the bill are similar to the Renters (Reform) Bill 2023-24 introduced by the previous Conservative government.
Two dates – 22 and 24 April – have been given for the committee stage of the bill at the House of Lords, when it will be examined in detail
It will then go through to the third reading, giving Lords the chance to finalise any amendments and make sure the bill is workable as law.
The third reading could happen straight after the committee stage.
If Lords disagree with any amendments or make their own changes, it will be sent back to MPs at the House of Commons, delaying its implementation. Once agreed, the bill will be sent to the monarch for royal assent.
The current Labour government believes there is an urgent need to reform the regulation of the PRS and that the bill will fulfil commitments made in its 2024 general election manifesto. The majority of the bill’s provisions will affect the PRS in England, some measures will affect Scotland and Wales.
Lovell Park – Leeds Student Accommodation
Purpose Built Student Accommodation (PBSA) will be exempt from the changes where the provider is registered to a government-approved Code. Full clarity on the bill and how it will impact the student accommodation sector is still under discussion and needs further clarity.
Most discussion regarding the bill is centred on the abolition of Section 21 ‘No Fault’ evictions and fixed term tenancies. Below is an overview of the key provisions of the bill:
Section 21 ‘No Fault’ Evictions Abolished
The RRB will ban Section 21 ‘no-fault’ evictions to give renters greater security in their homes. Section 8 will now become the main way to evict tenants and grounds for possession have been updated and expanded.
Fixed Term Tenancies Abolished
All fixed term assured shorthold tenancies (ASTs) will convert to periodic tenancies overnight. Any deal you sign now will immediately become a periodic tenancy once the RRB becomes law, rather than running for the duration of the agreed contract.
Rent Increases Limited to Once Per Year
Serving a Section 13 notice once per year will be the only way to raise the rent when ASTs are abolished.
Tenants Can Challenge Rent Increases
Tenants can use a first-tier tribunal service to appeal rent increases they think are unfair. Where a tenant does use this service, this may delay rent increases, as any rent increase will not come into effect until the tribunal process is completed.
Decent Home Standard Established
Private rental homes need to meet minimum standards. Landlords who fall below these standards can be fined up to £7,000 by local councils and may face prosecution.
Awaab’s Law Introduced
Initially part of the Social Housing (Regulation) Act, this law means landlords must follow strict timescales to address health hazards, such as damp and mould.
Bidding Wars Banned
Landlords and letting agents must advertise a fixed asking rent and cannot accept offers above this price.
More Freedom to Have Pets in Rented Properties
Tenants will have more freedom to request a pet. However, landlords can require a tenant to have some form of pet insurance.
Digital PRS Database
A new digital database will provide transparency on landlord compliance.
Introducing a Property Ombudsman
This service will help to resolve disputes impartially between landlords and tenants without the need for court involvement.
Tenant Discrimination
Landlords cannot refuse tenants just because they have children or are on benefits.
Although the above elements are the key features of the RRB (and it’s unlikely there will be any backtrack on the issues) the finer details are currently under discussion and debate. PRIMO is monitoring the progress of the RRB to ensure our team understands the impact and we are compliant from the off.
Reading the above, you may be asking yourself:
“When will this new legislation be in place?”
Whilst there is no firm date set, Spring 2025 is mooted. However, others indicate it will take longer and it may well be later in the year when the RRB gets Royal Assent and we are clearer on timescales for implementation.
“What is PRIMO doing to prepare for these changes?”
As an experienced property management company with industry gold standard technology (ALTO, GOODLORD and FIXFLO Repair Reporting) providing the framework for our operations, we have it covered.
Abolition of Fixed Term Contracts – GOODLORD automatically updates contracts, ensuring your tenant’s contract is immediately compliant with the legislation.
Section 13 Rent Increase Notices – automated within GOODLORD to ensure compliance with timescales, avoiding delays to your increased rental income. Additionally, our knowledge of the PRS and local rent levels means any proposed rent increase is less likely to go to first-tier tribunal.
Decent Homes Standard and AWAAB’s LAW – our FIXFLO Repair Reporting process provides a full audit trail of an issue being reported (by the tenant) and the timescale to resolution, ensuring compliance with new RRB legislation.
Abolition of Section 21 ‘No Fault’ evictions – robust referencing and automated tenant sanction checks to ensure we recruit high quality, reliable tenants.
Tenant quality is more important than ever. GOODLORD referencing software helps to ensure prospective tenants:
- Are who they say they are
- Can reliably pay rent
- Are employed and their income is sufficient
- Have good feedback from previous landlords
Additionally, GOODLORD provides Rent Protection & Legal Expenses Insurance, protecting PRIMO landlords from rent arrears and lengthy eviction processes.
The level of change ahead and compliance challenges is daunting if you manage your own properties. PRIMO is ready to meet the challenges of the RRB and mitigate any risk for our landlords.
If you’d like a chat about our services or have any queries regarding the upcoming RRB please get in touch Primo Property Management
Why not let us give you ‘peace of mind’ with our full range of property management services.
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