From May 1, the private rental sector will see its biggest revolution in decades as the main components of the new Renters’ Rights Act come into force. The last major reform to the PRS was in the late 1980s and the sector has grown significantly since then. The changes aim to provide greater certainty and protection for tenants and to improve standards within the sector as a whole.
The act will include a significant change to tenancy structures as traditional assured shorthold tenancies end, replaced instead by an immediate shift to periodic tenancies for all. It will also see the end of section 21 no-fault evictions, meaning that how landlords serve notice on a tenant will alter radically after May 1.
Why ASTs are ending
The move to periodic tenancies is designed to address what the government sees as one of the biggest current challenges in the system – a lack of long-term security for tenants. Currently, the existing system of fixed-term tenancies and no-fault evictions means that once their tenancy agreement is up tenants can be forced to leave a property, even if they have made it their home.
This has several negative impacts. The insecurity can mean a transient tenant who may not be able to effectively put down roots in their community, impacting their employability and often their mental health, too. Nervousness about being forced out if they complain can also mean that tenants are reluctant to address issues within their homes, such as poor property standards or unfair rent increases.
When periodic tenancies come into force
The move to periodic assured tenancies and other specific measures around property standards and rent increase procedures, aim to end such challenges. The conversion to periodic tenancies will be automatic from May 1. These rolling tenancies will have no end date and in order to leave, tenants will need to provide two months’ notice.
Landlords, meanwhile, will have clearer grounds for possession, although these must be legally valid. They must provide the relevant notice and may need to evidence their reasoning in court if challenged.
What landlords must do
The automatic change from May 1 means that existing written tenancy agreements won’t need to be amended or reissued. Instead, landlords must provide their tenants with a copy of the government’s information sheet which will be published in March.
This will explain the new tenancy rules and must be served by the end of May. If existing tenancies are verbal, then landlords must give their tenants a written record of the specific terms of the agreement rather than providing the information sheet.
For tenancies that begin on or after 1 May, landlords must provide tenants with information about the tenancy in writing, which can be in the form of a tenancy agreement. The government is publishing details on what information should be included in new tenancy agreement templates in January. Landlords should also familiarise themselves with the new forms and revised procedures, such as for rent increases, also included in the act.
Communications campaign
To support the changes the government will launch guidance and communications campaigns for both tenants and landlords. Guidance for landlords and letting agents has already been published. The Renting is Changing government guidance is available on the government’s housing hub. It will be followed by tenant guidance published in April, which will help those renting to understand and prepare for the changes.
We Can Help
At Progressive Lets, we are experts in the rental market in the Peterborough area and help landlords find and manage properties within a 50-mile radius. Get in touch to find out more.
