Landlords, Are You Ready for Renters’ Rights?

The Renters’ Rights Bill is set to receive Royal Assent this autumn, landlords need to start preparing now for the changes this new legislation will bring.

The key reforms will affect all Housing Act tenancies, replacing Assured Shorthold Tenancies (ASTs) with Assured Periodic Tenancies (APTs). New paperwork will need to be issued to all tenants.

Key Changes

All existing and new AST tenancies will become periodic
Fixed-term tenancies will be removed
Tenants will have security of tenure for an initial 12 month period
Ban on rent bidding and advance rent payment requirements
New and expanded possession grounds for eviction under the Section 8 Notices
Improving housing quality through the introduction of the Decent Homes Standard and Awaab’s Law to the PRS
Greater rights for tenants to keep pets (where appropriate)
Prevention of discrimination of tenants
The introduction of a PRS database
Creation of a new Ombudsman service for PRS landlords
Annual rent reviews allowed via Section 13 Notice
Punitive enforcement for non-compliant landlords

Here at Batcheller Monkhouse, we can help you prepare your tenancy and property for these upcoming changes.

Removal of the Section 21 Notice and Expanding Grounds for Possession

The Government is removing Section 21 Notices. All ASTs will be replaced by APTs, giving tenants greater security.

This has been designed to allow tenants to feel more secure in their homes with more security to challenge poor practice and unfair rent increases.

Tenants will have security of tenure for an initial 12 month period, as opposed to 6 months currently.
Tenants can give notice after an initial 4 months.
Landlords will now use the expanded Section 8 Notices to repossess properties.

We at Batcheller Monkhouse guide landlords to ensure possession is granted when required. Rent protection policies are also available to cover both non-payment of rent and possession requirements.

Using Section 8 to Regain Possession

Section 8 grounds have been strengthened and expanded. Landlords can regain possession if:

The property is to be sold
The landlord or a family member wants to move in

New Measures to End Rental Bidding Wars

A minority of landlords, particularly in cities, were driving rents up through bidding wars. To stop this, the legislation will now require landlords and letting agents to publish the asking rent and make it illegal to request, encourage, or accept any bids above this price. Non-compliance can result in civil penalties of up to £7,000.

This makes it crucial to set the rent correctly from the start. To help, we also offer annual rent reviews for our clients to ensure rents remain fair and compliant.

Tenants Right to Request a Pet

The bill aims to make it easier for tenants to keep pets, however there are several caveats. Landlords must fully consider each request on a case-by-case basis.

There are a number of reasons why it may not be possible to allow pets, such as where the superior landlord prohibits them or in properties like farms with livestock.

If a landlord unreasonably refuses a request, tenants can escalate the complaint to the Private Rented Sector Ombudsman or take the case to court. Any final decision will be based on the evidence provided by both the tenant and landlord.

Applying a Decent Homes Standard and Awaab’s Law to the PRS

To improve the condition of rental properties and ensure that they are fit, habitable and safe homes to live in:

Rental properties must meet Decent Homes Standard (DHS)
If a rental property fails to meet the DHS requirements, the local authority will have a range of enforcement mechanisms available. This includes issuing an improvement notice requiring the landlord to remedy the failure within a specified timescale as well as issuing civil penalties up to £7,000.
Awaab’s Law (currently social housing) extended to PRS:
- Hazards like damp and mould must be addressed within 14 days
- Repair work needs to start within 7 days
- Emergency repairs must be completed within 24 hours

We can carry out Property MOTs, to check the condition and ensure it’s free from hazards, check legal compliance, and provide photo reports with recommendations for maintenance.

Creation of a PRS Database

The Government plans to establish a Property Portal containing all vital information for tenants, landlords, agents, and local authorities. This will include:

Legal requirements
Landlords’ compliance
Rent data

All landlords will be legally required to register themselves and their properties. Fines range from £7,000 for an initial breach to £40,000, or even criminal prosecution, for repeat offences.

Agents may also play a role as if a property is managed by an agent, they may be able to register on behalf of their clients.

A New Property Ombudsman Service

All landlords will have to join a new Ombudsman service, which will provide a compliant resolution service for tenants.

The Ombudsman will have the power to:

Compel landlords to issue apologies
Provide information
Carry out remedial action or pay compensation

Tenants will have the right to seek Rent Repayment Orders if their landlord fails to register.

Prevention of Discrimination Against Tenants in Receipt of Benefits or with Children

Although landlords will still have final say over who rents a property, checks must be based on affordability.

It will be illegal to refuse a tenancy purely because a prospective tenant has children or receives benefits.

Some property may not be suitable for children, therefore landlords would need to be able to evidence their decision.

Strengthening Councils’ Enforcement Powers

This legislation is designed to penalise rogue landlords who continue to flout the rules.

Initial or minor non-compliance will incur civil penalties up to £7,000.
Serious, persistent or repeat non-compliance can reach £40,000 or criminal prosecution.

Councils will be provided with a range of new investigatory powers to enforce new reforms, including:

Requiring information from relevant persons
Power of entry to both business and residential premises

We Are Ready to Help

Batcheller Monkhouse are ready for this legislation and we are on hand to help guide landlords through the maze of the legislation as it comes in.