Renters rights

The Renters Rights Bill continues its march through the parliamentary process to become law and it looks like it will have the biggest impact on the private residential sector in a generation. Much of the commentary on the Bill focuses on the potential impact on student lettings and the abolition of the right for landlords to ask for large amounts of rent in advance from tenants looking to secure a tenancy. The overview of the Bill measures is as follows:

'The Renters' Rights Bill will:

• Abolish section 21 evictions and move to a simpler tenancy structure where all assured tenancies are periodic. The government proposes to implement this new system in one stage, giving all tenants security immediately.
• Ensure possession grounds are fair to both parties.
• Enable tenants to appeal excessive above-market rents which are purely designed to force them out. As now, landlords will still be able to increase rents to market price for their properties and an independent tribunal will make a judgement on this, if needed.
• Introduce a new Private Rented Sector Landlord Ombudsman that will provide quick, fair, impartial and binding resolution for tenants' complaints about their landlord.
• Create a Private Rented Sector Database to help landlords understand their legal obligations and demonstrate compliance (giving good landlords confidence in their position), alongside providing better information to tenants to make informed decisions when entering into a tenancy agreement.
• Give tenants strengthened rights to request a pet in the property, which the landlord must consider and cannot unreasonably refuse. To support this, landlords will be able to require pet insurance to cover any damage to their property.
• Apply the Decent Homes Standard to the private rented sector to give renters safer, better value homes and remove the blight of poor-quality homes in local communities.
• Make it illegal for landlords and agents to discriminate against prospective tenants in receipt of benefits or with children.
• End the practice of rental bidding by prohibiting landlords and agents from asking for or accepting offers above the advertised rent. Landlords and agents will be required to publish an asking rent for their property and it will be illegal to accept offers made above this rate.
• Strengthen local authority enforcement by expanding civil penalties, introducing a package of investigatory powers and bringing in a new requirement for local authorities to report on enforcement activity.
• Strengthen rent repayment orders by extending them to superior landlords, doubling the maximum penalty and ensuring repeat offenders have to repay the maximum amount'.

Landlords and tenants must get their ducks in a row and prepare for these changes. Many people have bought rental properties in recent years as an investment and it is essential that they ensure that they take advice to ensure that they comply with the changes afoot.

To discuss this or any other landlord and tenant matter, contact us.