17 Sep 2024 Advice
First Move In Decades? Here Are Our Top Tips…
The Renters’ Rights Bill is set to reshape the rental market, strengthening tenant protections and changing landlord responsibilities. Here’s what we know so far and how it will affect you.
What we know so far – Introduced to Parliament on the 11th September 2024, the bill has quite a few implications for landlords tenants and letting agents.
These include:
- The abolishment of no fault Section 21 evictions
- There will be more grounds for possession in Section 8
- Assured Shorthold Tenancies (AST’s) will be replaced with periodic tenancies
- Section 13 notices being the only way to increase rent
- Ending to rent bidding wars
Abolition of Section 21 No Fault Evictions
The Government believe that abolishing this will end arbitrary evictions. This will give renters more security and stability.
What this means is that Section 8 will become the primary mechanism for evicting tenants when the Renters Rights Bill becomes law.
New mandatory grounds will be added and there will be changes to the discretionary grounds to help landlords get their properties back.
Mandatory Grounds
- Ground 1 (Amended) – If the landlord or a family member want to move in once the tenancy has exceeded 12 months.
- Ground 1a (Amended) – If the landlord wants to sell the property this can be used once the tenancy has exceeded 12 months.
- Ground 2 – If the mortgage company wishes to repossess the property.
- Ground 2za – 2zd (New) – If the leasehold ends and the landlord doesn’t own the freehold.
- Ground 4 – If the property was let to a student by an Education Institute for 12 month fixed term.
- Ground 4a (New) – For student landlords who need the property back for the next academic year.
- Ground 5 – If the landlord is a Religious Institution and needs a minister to live in it.
- Ground 6 – If the landlord wishes to demolish or redevelop the property making it currently unliveable.
- Ground 6a (New) – If the landlords needs the property back due to an enforcement order.
- Ground 7 – If the tenant passes away, however this cannot be used if there is a surviving spouse living in the property.
- Ground 7a – If the tenant has committed serious anti-social behaviour
- Ground 7b – If the tenant does not have a Right to Rent – for example their VISA expires
- Ground 8 (Amended) – If the tenant has fallen into at least 3 months arrears, if monthly, or 13 weeks if weekly/fortnightly
Discretionary Grounds
- Ground 9 – If the landlord has provided like for like accommodation for the current tenancy.
- Ground 10 – If the tenant is in arrears, but less than ‘Ground 8’.
- Ground 11 – If the tenant persistently pays rent late but is not in arrears
- Ground 12 – If the tenant breaches the tenancy agreement but is not in arrears
- Ground 13 – If the tenant has neglected or deteriorated the property
- Ground 14 – If the tenant is a nuisance or annoyance to neighbours or is using the property for illegal or immoral activity.
- Ground 14a (New) – Social landlords can evict a domestic violence proprietor if the victim has fled.
- Ground 14za (New) – if the tenant at the property has been convicted of an indictable offence during a UK riot.
- Ground 15 – The tenant damages furniture provided by the landlord.
- Ground 17 – The tenant was given the tenancy with a false statement.
- Ground 18 (New) – If the tenancy has been provided for supported accommodation and is refusing support.
Assured Shorthold Tenancies will become Periodic
When the Bill becomes law, all Assured Shorthold Tenancies (AST’s) will instantly become periodic. Any tenancy that is signed now until that date will be affected, as well as existing tenancies.
Tenants will have to give two moths notice to end the tenancy.
Tenancies will operate on a rolling monthly tenancy and there will be no minimum term for new or existing tenancies. This means that tenants can leave at any point as long the correct notice is given.
This will be introduced to given tenants more freedom to leave sub-standard properties.
Tenancy agreements will still exist so the rules and regulations are abided by, but there will be no fixed dates.
Rent Increases with a Section 13
After the abolition of AST’s, Section 13 will become the only mechanism for rent increases, as there will be no renewal of the tenancy.
Landlords will need to provide two months notice of any proposed rent increase (at the moment it’s one month) and this can only be once every 12 months.
Ending Rent Bidding Wars
Once the Renters Right Act is in place landlords will only be able to accept the advertised rent and not offers over. In most cases this is a rare occurrence.
Other Changes
As landlords in England, you will be required to register your property on a Government Portal and upload all compliance documents annually. We do not know the finer details of this at the moment, but failure to comply will have hefty fines.
As agents, if we manage your property, we will do this for you and ensure you are safe, compliant and legal.
As all of this is still going through the House of Commons and House of Lords we will keep you updated.
We believe the date this will be implemented will be between May 2025 and September 2025.
The Renters’ Rights Bill is set to reshape the rental market, strengthening tenant protections and changing landlord responsibilities. Stay ahead of the changes and protect your investment by letting us handle everything for you. If we manage your property, you can relax knowing we take care of all the complexities, so you don’t have to.
Get in touch today to find out how we can make renting stress-free for you!
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