The Governments commitment to transform the experience of private renting means it is likely the Renters Rights Bill will come into fruition by early Summer. The scheme will be introduced in one stage in the hope of preventing a confusing 2-tier system and give all tenants security immediately. For landlords and agents this will mean that all existing tenancies including fixed terms will be converted to the new system and any new tenancies signed on or after the date of implementation will be governed by the new rules. To keep you up to date and well informed we have summarised what the changes entail including new proposed notice periods. Information was taken from the Gov.uk website and is still open to interpretation and amendments. When changes take place, we will of course keep you as up to date as we can but if you have specific questions please do not hesitate to call the Lettings Department 0151 342 5777 and we will try our best to answer your questions.
The Renters Rights Bill Measures include
- Section 21 Evictions and periodic tenancies – the new structure will move all tenancies to periodic with a 12 months protected period and a 4 months notice period (cannot be used for the first 12 months of a tenancy) if the landlord wishes to sell or move back in. The intention is to provide more security for tenants and prevent retaliatory notices.
- Fair possession grounds for both parties – tenants will have more security whilst landlords can recover their property when reasonable. The notice for a landlord that wishes to move back in or a close family member is 4 months notice and cannot be issued in the 12 months protected period. The same applies if a landlord wishes to sell. A tenant will be required to be in 3 months arrears before a Section 8 can be issued and the section 8 has increased from 2 weeks to 4. For more information on notices, please speak to the Lettings team.
- Stronger protections against backdoor eviction – Tenants are able to appeal against above market rent increases. As it stands, rent increases that are in line with market value and initiated under the correct circumstances including serving of the relevant notice are fine.
- Private Rented Sector Landlord Ombudsman – Introduced to provide impartial resolution for tenants complaints about their landlord. There will be a fee to landlords in order to fund this service but no further information is provided.
- Private Rented Sector Database – Created to provide landlords with access to their legal obligations and compliance
- Pets in a property – Landlords must consider allowing a tenant to have a pet and cannot unreasonably refuse. On the flip side of this, landlords will be able to require pet insurance to cover any damage.
- Decent Homes Standard – Renters will feel safer and poor quality homes will be reduced
- Awwab’s Law – Clearer guidelines will be provided in terms of timescales for a landlord to take action when the property contains serious health hazards.
- Discrimination against prospective tenants in receipt of welfare or who have children – Something that Karl Tatler already practice and the desired result is to make sure everyone is treated fairly when it comes to renting.
- Rental Bidding – It will be illegal to accept more than the asking rent which is the rent advertised.
- Local Authority Enforcement to be strengthened – Expanding civil penalties, investigatory powers and a requirement for local authorities to report on enforcement activities.
- Rent Repayment Orders – to be strengthened ensuring repeat offenders have to repay the maximum amount
- Rent in advance – is limited to one month in advance and can only be requested when the tenancy has been executed. A landlord/agent cannot request rent in advance and once the bill is in action a tenant can only volunteer it with no interference from the landlord or agent.
As advised in our previous update about the Renters Rights, Karl Tatler already practice a great deal of the above and are well equipped to navigate the measures. In terms of the periodic tenancies, we are gathering advice from Solicitors and are working tirelessly behind the scenes to ensure the biggest change in legislation in Lettings in the last 20 or so years is as seamless as possible for our managed landlords and our goal is to make it as stress free as possible. If you require more information or you would like to discuss the bill further and ease any concerns please call the Lettings team on 01513425777.
