On Wednesday, Parliament had the first reading of the Renters’ Rights Act, and I’d like to reassure landlords that there’s nothing in these proposals that should catch you off guard. Most of the changes were part of the Conservative Party’s agenda before their leadership change in July. Regardless of the political party in power, these rights were always set to come into effect, so there’s no need to worry about any revolutionary shifts.
Here’s a breakdown of what’s involved and how it might affect you as a Lancaster landlord.
The End of Section 21 ‘No Fault’ Evictions
The most talked-about change is the removal of Section 21 evictions. For years, landlords have been able to give tenants two months’ notice to vacate a property without needing to provide a reason. The proposed changes would end these ‘no fault’ evictions, which many believe have been unfairly used, especially against tenants who challenge poor living conditions or reject rent increases.
However, Lancaster landlords needn’t worry. You will still be able to evict tenants under Section 8 of the Housing Act for valid reasons, such as rent arrears, property damage, or antisocial behaviour. The key difference is that a court order will now be required, which could lead to delays due to the current court backlog. The government has committed to addressing these delays and making the process more efficient.
Rent Increases and Bidding Wars
Another significant change is the ban on bidding wars. Recently, many Lancaster landlords have experienced tenants offering more than the advertised rent due to high demand. Under the new legislation, it will be illegal to accept bids higher than the stated rent. This could help stabilize the market, but it’s worth keeping in mind when setting rental prices for your properties.
Additionally, rent increases will now be limited to once per year and will not be permitted during the fixed term of a tenancy. While this might seem limiting, it could encourage tenants to stay longer, as they’ll have more stability.
Energy Efficiency and Property Standards for Lancaster Landlords
In line with recent discussions, the proposed act also introduces stricter requirements around energy efficiency. By 2030, all rental properties will need to have an Energy Performance Certificate (EPC) rating of C or better. While this may require some investment, there is plenty of time to plan and budget accordingly.
Furthermore, the introduction of the Decent Homes Standard to the private rental sector means that landlords must ensure their properties meet certain minimum standards. This includes addressing issues like damp and mould, improving overall living conditions for tenants. For most landlords, these standards will already be in place, but it’s a good time to review your property’s condition to ensure compliance.
Let’s Chat
If any of these changes are causing concern, don’t worry. I’m here to help guide you through what these rights mean for your specific situation. Whether you need advice on staying compliant with the new regulations or want to understand how these changes might affect your investments, I’m available for a chat.
If you have any questions at all, please get in touch. You can call me on 01524 843322 or email me. It’s josh@jdg.co.uk
Thanks for reading and we promise to keep you fully informed
Josh
