We have been anticipating the introduction of a Renters’ Rights Bill affecting the lettings industry for several years. The previous Conservative Government had set out to introduce changes affecting the private rental sector but encountered numerous difficulties when submitting its bill through Parliament, resulting in them alluding to watering down the Bill.
Labour is now in charge and they had pledged in their manifesto to fast track their version of the Bill. They intend on introducing greater rights for tenants but are still in the early stages. The Government has expressed its intention for the Bill to be enforced by spring/summer 2025.
The following is an overview of the proposed upcoming changes:
Abolish the Section 21 Notices – no-fault eviction notice. This will mean tenants will have greater security to remain in the property. However, there will be exceptions, for example if a tenant is in rent arrears or if the landlord wishes to sell the property. The courts are currently backlogged. Therefore, in my opinion, the Section 21 Notice will need to be replaced with a specific small claims court, handling repossession claims which will resolve disputes more efficiently.
Rent increases and the end of bidding wars – with the intention to eliminate unfair rent hikes. The Government intends to allow one rent review each year in line with market values. Robinson & Hall currently carries out annual rent reviews and will discuss rental values two months prior. Upon advertising a rental property, the changes will not allow bidding wars or offers over the asking price. This may result in agents advertising over the market value and accepting offers close to the asking price.
Pets, benefits and families – the law would not allow discrimination against tenants who have children and/or receive benefits. Tenants will, however, be required to pass referencing checks to be eligible to rent a property. Tenants will also have the right to request pets in the home. However, a pet insurance policy may be necessary to cover potential damages. Awaab’s Law – this law relates to the tragic death of a two-year-old child due to exposure to mould in the social home his family rented. The new law will mean landlords are required to fix serious health hazards like damp or mould within a certain timeframe.
Energy Performance Certificate (EPCs) – the Government has expressed its intention to increase the minimum EPC rating from an E to a C in order to be able to let out a property in the UK. However, the change will not be enforced in the Renters’ Rights Bill, meaning there may be a delay in implementing this change until 2030.
If you would like to book a no-obligation lettings appraisal or to find out more about our lettings department, then please contact me.
