Legal changes governing the relationship between landlords and tenants are imminent, mainly aimed at protecting tenants and therefore putting new burdens onto landlords. The implementation of the Renters’ Rights Bill is being staggered, with some aspects being due in 2025 and others not until 2026. David Moulton, who specialises in property litigation at Fraser Dawbarns, outlines key points for landlords to consider.
Fixed term tenancies to end
The new Renters’ Rights legislation is expected to become law in September 2025. It will then be implemented in stages, beginning in late 2025, according to current projections.
Among the first changes will be fixed term tenancies coming to an end. All tenants will have periodic tenancies but will then have to give two months’ notice if they plan to move out. This will be a change for both landlords and tenants as most will be used to the traditional approach of signing up for either six or 12 months initially and then extending the lease as required.
Getting a tenant to vacate
Under the new regime, a landlord wishing a tenant to vacate a property will lose the option to serve a “no fault” Section 21 notice. There will however be other situation-dependent alternatives.
Rent increases
Under the new Renters’ Rights regime, the standard notice period for increasing a tenant’s rent will be two months rather than one. This is already good practice but will become compulsory. It supports the aim of outlawing unreasonably large rent increases in general, or as a means of trying to get tenants to depart.
Tenants will also have new rights to challenge rent increases imposed by their landlords if they disagree with them. This will be done through the First-Tier Property Tribunal. Where a tenant appeals but the court rules in favour of the landlord, there is no plan to enable the rent increase to be backdated to the time that the landlord tried to introduce it. Instead, it will be effective from the time at which the Property Tribunal made its decision. Some landlords are expressing concern that this will encourage more tenants to appeal against increases.
Letting to new tenants
Changes are also planned to the process of attracting new tenants in the first place. There are several measures which aim to discourage discrimination and there will potentially be fines for non-compliance.
Pets
Pet owners will be afforded some protection under the new Renters’ Rights regime. Not only will landlords no longer be able to stipulate ‘no pets’, they will also be unable to withdraw their consent for pets part-way through a tenancy, unless the pet exhibits a serious behavioural issue which justifies this.
From a landlord’s perspective, there is a continuing concern about the fact that there is no comprehensive pet-damage insurance policy on the market which could leave a property exposed to damage and a tenant being unable to afford to repair it. The solution being proposed to this relates to a pet damage deposit, which in reality is an approach some landlords have used for many years.
Decent Homes Standard
There are plans to extend to the private rental sector similar standards of repair which already apply to social housing. There are provisions around general state of repair and facilities such as heating. The introduction of ‘Awaab’s Law’ is also planned to create clear timeframes for landlords to deal with serious health-concerning hazards.
Local Councils will be given greater powers than ever before to take action to force landlords to carry out necessary repairs to ensure that these standards are met.
However, none of these changes will be part of the first tranche of legislation. There are concerns in some quarters that when these changes do come into force, some private landlords will be unable to afford to make the improvements that are required without dramatically increasing the rent they charge to tenants to cover their costs.
Other Proposed Changes
Landlords will eventually need to be registered on a new private rented sector database, although no date has yet been set for this. Likewise, they will also need to sign up with the private rented-sector Ombudsman.
There is a whole raft of further detail which will be of interest and importance to some landlords but of relatively little significance to others. Landlords should consider reviewing their current tenancy arrangements now and discussing their future plans with their property agents if they have one.
The Wider Impact of the Renters’ Rights legislation
The general view is currently that the combination of this regime and tax changes will make buy-to-let a far less attractive option than previously. There will still be landlords with existing larger portfolios of properties who feel that they can adapt to the new legislation, with the help where needed of their letting agents and solicitors. The incidence of landlords with one or two properties is expected to decline over time, potentially leaving a hole in the private rental market which will need to be filled by social housing.
Getting Ahead of the Renters’ Rights Changes
If you are having trouble securing possession of an existing property and wish to try to do this before the rules change, please contact us.
To contact a member of our team, you can fill in our online enquiry form, email info@fraserdawbarns.com, or call your nearest office below. If you’d like to speak to a member of our team at one of our offices across Norfolk and Cambridgeshire, visit our offices page.
Ely: 01353 383483
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This article aims to supply general information, but it is not intended to constitute advice. Every effort is made to ensure that the law referred to is correct at the date of publication and to avoid any statement which may mislead. However, no duty of care is assumed to any person and no liability is accepted for any omission or inaccuracy. Always seek advice specific to your own circumstances. Fraser Dawbarns LLP is always happy to provide such advice.
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