The rental landscape in the UK is on the verge of significant change with the introduction of the Renters’ Reform Bill. While this may feel like a challenging time for landlords, understanding the key elements of the bill and how to adapt can help ensure continued success in the rental market.

Abolition of Section 21 (“No-Fault” Evictions)

One of the most talked-about aspects of the bill is the abolition of Section 21, which currently allows landlords to end tenancies without providing a specific reason. In its place, landlords will need to rely on legally defined grounds for regaining possession of their properties, such as rent arrears, anti-social behaviour, or the need to sell the property. These clearly defined possession grounds will still allow landlords to regain control of their properties when necessary. Additionally, efforts are being made to streamline court processes to prevent lengthy delays in possession claims.

Introduction of a Single System of Periodic Tenancies

Fixed-term contracts will be replaced by a single periodic tenancy system. Tenants will have the flexibility to leave with two months’ notice at any time rather than being tied to a specific contract length.

Rent Increases and Prohibition of Bidding Wars

The bill introduces stricter rules on rent increases, limiting them to once per year and requiring that they remain in line with market rates. Additionally, landlords and agents will no longer be able to accept offers above the advertised asking rent. Landlords can still ensure fair returns by setting competitive market rents from the outset.

Lifetime Deposits

The government plans to introduce a ‘lifetime deposit’ system, meaning tenants will not need to raise a new deposit before receiving their old one back. While the mechanics of this system are still being finalised, it aims to streamline tenant transitions, potentially reducing void periods and encouraging a more fluid rental market.

New Tenant Protections

The bill prevents landlords from automatically refusing tenants based on receiving benefits or having children. Additionally, tenants will have a right to request pets, and while landlords can refuse on reasonable grounds, blanket bans will no longer be allowed. Landlords can request pet insurance to cover potential damages, ensuring financial protection.

Awaab’s Law and the Decent Homes Standard

The tragic case of Awaab Ishak has led to stricter regulations on addressing health hazards such as mould and dampness. The Decent Homes Standard, previously applied to social housing, will now extend to private rentals. Most responsible landlords already maintain their properties to a good standard. These regulations primarily target negligent landlords and aim to ensure fair competition in the rental market.

In summary, change can be daunting, but with the right preparation, landlords can continue to thrive under the new rules. At Huntleys, we are here to support you through these changes and ensure your rental business remains successful. If you have any questions or concerns, don’t hesitate to reach out to our team. We’re committed to helping landlords navigate this evolving landscape with confidence.

Sources & further reading:

The Renters’ Rights Bill – UK Parliament

Guide to the Renters’ Rights Bill – UK Government

A Decent Home – Definition and Guidance – UK Government