Welcome to another Newsround, where this week we have had the most significant and long awaited news for landlords in a long time with the Renters’ Rights Bill finally being published by our new government.
Let’s start our Newsround this week by taking a look at what it means for landlords.
New Renters’ Rights Bill
The new Renters Rights Bill was published on Wednesday with its first reading in parliament, and it has been stated that the new rules could become law as soon as next summer 2025.
Some of the main changes are:-
- End of fixed term tenancies – all tenancies to be monthly periodic with the right for tenants to end them on 2 months’ notice to quit
- End of Section 21, no-fault eviction, to apply to both new and existing tenancies at once, probably as soon as the act becomes law
- A ban on discrimination against tenants on benefits, those with children, and the right to request a pet
- Awaab’s Law to be extended into the private rented sector, applying the decent homes standard for all rental properties
- Rent increases will only be allowed once a year using the statutory notice procedure
- Facility for tenants to challenge rent increases if they are above the market rent
- A new ombudsman service to provide fair and binding resolution to both landlords and tenants
- A digital private rented sector database holding information for landlords, tenants and councils
- End of ‘bidding wars’ when viewing and applying for a rental property
- Local authorities will have greater powers to enter PRS properties and the financial penalties for non-compliance will increase considerably
This bill applies in the main, only to England, and the changes will apply to both new and existing tenancies. Tenants will also be able to give notice from day one of the tenancy.
There is a new possession ground for landlords wanting to sell or use the property for themselves or their family, but this cannot be used within the first 12 months of the tenancy and the landlord will have to give 4 months notice. The mandatory rent arrears ground will require 3 months arrears and 4 weeks notice.
Angela Rayner, the Housing Secretary said of the Bill
Most landlords act in a responsible way but a small number of unscrupulous ones are tarnishing the reputation of the whole sector by making the most of the housing crisis and forcing tenants into bidding wars
There can be no more dither and delay. We must overhaul renting and rebalance the relationship between tenant and landlord. This Bill will do just that and tenants can be reassured this Government will protect them
You can read the full guidance to the Renters’ Rights Bill on the government website here.
Tessa’s preliminary comments are here.
Section 21 abolishment and what it means to the court system
With the ban of section 21 now looming there is the ongoing concern that the court system will not be able cope with the existing the backlog coupled with and now expected ‘surge’ of section 21 notices being served before the new bill comes into force next year.
Sarah Taylor of Excello Law, a property dispute resolution partner said
The risk to both tenants and landlords is the existing backlogs in the Court system. Trying to obtain possession orders will be protracted, causing uncertainty and delays for both landlords and tenants.
This was a concern of the previous government who had delayed implementing their Renters Reform Bill for this precise reason. Scott Goldstein a property disputes specialist said
The county court system is completely broken. It now takes many weeks to process claims. We must hope that the government invests in the courts to cope with the expected influx in new claims.
However, if the procedure rules are changed (as I understand may be being considered) to allow more paper only procedures with hearings only taking place if a defence is filed, this could help process claims more quickly.
Council clamps down on derelict homes
Middlesborough council is clamping down on empty derelict properties that they claim has worsened in the last few years, many are insecure which is encouraging anti-social behaviour.
They have 2,231 empty properties in Middlesborough 1,233 of which have been empty for more than six months. These properties alone carry an outstanding council tax bill of £5.5 million.
The council has launched a ‘combined push’ to contact landlords where they can, reminding them of their responsibilities to tackle the empty properties, and they are now even compulsory purchasing and taking legal action. Where properties pose health hazards they are forcing the sale of them.
Richard Horniman, regeneration director on the council hopes that this will help to return the properties back to use.
Government considering support for landlords with low EPC ratings
Propertymark has been lobbying the government for a long time now asking that they support landlords with grants to enable them to better their rental properties with EPC ratings that are below a C. They have recently written again to Ed Milliband, the Energy Secretary, calling for help again.
And now Ed Miliband has confirmed that the government will consider support and incentives for private landlords.
Tim Thomas of Propertymark has said
Clarity from the UK Government on new energy efficiency targets is vitality important and there must be sufficient financial and practical support to help landlords meet the legislation and contribute towards net zero targets 2050.
He also said that without any help for landlords then the governments target of all rental properties being an EPC C or higher will never happen by the deadline of 2030.
Snippets
Landlords urged to check council’s licensing requirements
Rats. mould, damp: UK’s biggest student homes provider faces legal action over poor accommodation
Landlords warn they may raise rents in response to Labour’s renters’ rights bill
Calls grow for short-let licensing to rebalance PRS
Suspended jail term for landlord who ignored safety checks
Co-living homes could ‘transform’ the Square Mile
Britain’s biggest landlord WELCOMES the Renters Rights Bill
See also our Quick News Updates on Landlord Law
Newsround will be back again next week