The Renters’ Rights Bill means huge changes for the private rented sector and there’s much to learn about its consequences. Here are seven things we feel you should know:
1 It’s getting closer
The Renters’ Rights Bill is currently in its committee stage in the House of Lords which means final amendments and Royal Assent aren’t far off. It’s likely many of the changes will come into force this year, which means being ready is essential.
2 Tenancies will change
The biggest change is the end of assured shorthold tenancies which will be replaced by rolling periodic tenancies. These aim to give tenants certainty that they can stay longer in a property than under the old system.
3 Possession grounds will be revised
Previously you could evict a tenant under a Section 21 notice – or no-fault eviction. But no more after the Renters’ Rights Bill becomes legislation. Instead, you will need to use a section 8 notice and cite one of a number of revised specific grounds for possession, many of which have different notice periods. You also won’t be able to move in or sell your property within the first 12 months of a new tenancy.
4 Rental bidding will no longer be allowed…
Unsure what to charge for rent? Have multiple tenants interested and leaving it down to who will pay the most? The bill will stop such practises. Instead, the rent you advertise must be in line with the market and you won’t be able to accept or ask for any more than you previously stated. Rent increases will also be limited to once a year and will require two months’ notice.
5 …but pets will be
Currently you have the right to refuse a pet in a property you are renting out. You might be worried about potential damage to your property, complaints from neighbours or simply don’t want the extra responsibilities they require. This will have to change. Tenants will be able to request a pet and you will only be able to refuse their request under certain circumstances – such as head lease restrictions, allergies or a refusal by the tenant to pay for pet insurance.
6 You should not discriminate against tenants with children or on benefits
Tenants with children or who are in receipt of benefits can no longer be discriminated against in a rental situation when the new bill comes into force.
7 You will need to register on a Digital Private Rented Sector database
Although unlikely to be ready for the bill’s initial enforcement you will, in the future, have to register and upkeep your details on a Digital Private Rented Sector database. This aims to give greater transparency of the market as well as greater protection for tenants.
These are just a few of the changes in the bill. There are more to consider as the government seeks to improve conditions for tenants and improve standards in the private rented sector.
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.
