Update on the Renters’ Rights Bill
Update on the Renters’ Rights Bill
Changes for landlords and tenants are getting closer
The Renters’ Rights Bill (successor to the Renters Reform Bill brought by the Conservative government) is still being debated in Parliament and is currently ping ponging between the House of Commons and the House of Lords. The bill recently passed its third reading in the House of Lords and will now be sent back to the House of Commons to vote on the amendments made by the Lords before granting Royal Assent. With the Summer recess on the 22nd July, the Bill will not now be passed before the Autumn session begins on the 1st September.
The Renters’ Rights Bill will have a major effect on the relationship between landlords and tenants. Below are some of the key changes that the Bill is looking to make:
Periodic tenancies
From the date the Bill comes into effect all fixed term assured tenancies will be replaced with periodic tenancies. This will give tenants the right to end their tenancy by giving 2 months’ notice to the landlord
Abolishing of Section 21 Notices
The Bill will remove the ability for landlords to serve a Section 21 (commonly known as a “no fault” eviction) notice on their tenants to begin the repossession process. The new process to remove a tenant will be to the current section 8 notice and will contain mandatory grounds and discretionary grounds for repossession. Upon application for a mandatory ground the Court must grant a repossession order if the ground is proven and for discretionary grounds the court may consider if eviction is reasonable. Further information on the proposed grounds for repossession and their relative notice period can be found at: https://www.gov.uk/government/publications/guide-to-the-renters-rights-bill/guide-to-the-renters-rights-bill
Changes to Eviction for Arrears
Under the current system a mandatory repossession order can be sought after a tenant falls into two months’ arrears after a notice period of two weeks has been given. The Bill will increase these thresholds in the tenant’s favour by increasing the ground to three months’ arrears and the requirement to give four weeks’ notice.
Rent increases
Landlords will be limited to one rental increase a year in line with market rate. The rent increase can be requested will be through a section 13 notice giving two months’ notice of the proposed increase. If the tenant believes the increase to be unfair, and that it exceeds the market rate, then they will be able to challenge it at the First-tier Tribunal. Other forms of rental increase such as rent review clauses or Landlord requests will not be permitted.
Private Rented Sector Landlord Ombudsman
The Government will introduce a new Ombudsman service to allow tenants to complain about their landlord’s actions or behaviour. The Ombudsman will be free at point of service to tenants and be able to offer fair, impartial and binding resolutions for tenants and have the power to compel landlords to issue an apology, provide information, take remedial action and/or pay compensation. Failure to comply with an order may result in enforcement action being taking by the local council.
Decent Homes Standard
The Bill will grant the Government the ability to create regulations which will set out a Decent Homes Standard. The aim of this regulation is to clarify what landlords are required to provide to tenants. It will also grant local councils with proportional enforcement powers to ensure that landlords are complying with the Decent Homes Standard.
If you are a landlord or tenant and require legal advice please do contact a member of our dispute resolution team at Kerseys Solicitors in Ipswich at [email protected] or telephone 01473 213311 or Kerseys Solicitors in Felixstowe at [email protected] on 01394 834557 or Kerseys Solicitors in Woodbridge at [email protected] on 01394 813732 or Kerseys Solicitors in Colchester at [email protected] on 01206 584584 or visit our web site.
