Last week, the government outlined significant changes to the private rented market in the Fairer Private Rented Sector White Paper. The measures will form part of the Renters Reform Bill announced in the Queen’s Speech.
No dates have been given yet, however the government has said they will implement these changes in two stages, to allow time for a smooth transition so landlords, tenants and letting agents can adjust.
As we are being asked lots of questions about it, we thought let’s simplify what it means.
For tenants
- Section 21 so called ‘no-fault’ evictions will be banned, as will arbitrary rent review clauses. Notice periods for rent increases will be doubled and a tenancy will only end if a renter requests it or a landlord has a valid reason, which will be defined in law.
- It will be illegal for landlords or agents to have a blanket ban on allowing pets or renting to families with children, or to those on benefits.
- The Decent Homes Standard will be extended to the private sector for the first time, with local councils set to have stronger powers to tackle rogue landlords.
For landlords
- Tenants will need to provide two months’ notice when leaving a tenancy. This is better for landlords as it helps avoid any lengthy void periods.
- The Tenant Fees Act 2019 will be amended to include pet insurance as an allowed payment. This means landlords will be able to request that tenants have pet insurance in place so that any damage to their property is covered.
- Want to sell? The government plan to introduce new mandatory eviction grounds for landlords who want to sell their property or move back into their own rental property.
- Tenant in arrears? New mandatory grounds for repeated arrears will also be introduced. This will help landlords who have tenants that pay off a small amount of arrears, keeping them under the mandatory repossession threshold of two months’ arrears.
There will also be a new property portal one-stop-shop will be introduced to help landlords comply with and understand their responsibilities, while a new Property Ombudsman will be created to help handle disputes between renters and landlords.
Do you have any questions? Please remember at JDG we are here to help. As soon as we know when they changes will becoming into place, we will let you know. In the meantime, we will keep you updated as normal!
Thanks for reading
Josh