The proposed Renters’ Rights Bill: what it means for landlords and agents

The Government’s proposed Renters’ Rights Bill represents reform of the private rented sector in England, addressing issues of affordability, security, and quality.
While agents are understandably concerned, it is worth noting that many of the proposed changes have already been enacted in Scotland in 2017. SME Professional’s software is tailored to regional requirements across the UK and already has features that will help agents successfully deal with these legislative changes.

Key measures of the bill

Abolishing Section 21 evictions

The bill will eliminate “no fault” evictions, allowing tenants to remain in their homes unless landlords provide reasons such as selling their property or moving in.

Decent homes standard extended

The bill extends the Decent Homes Standard to private rentals, ensuring homes are free from hazards like mold and damp, and properly maintained. Landlords failing to meet these standards could face fines of up to £7,000 or even prosecution.

Periodic tenancies to replaced fixed term

Fixed-term tenancies will be replaced by periodic tenancies. Renters will be able to end their tenancy with two months’ notice, while landlords must justify repossessing their property.

Rent increases capped

Rent increases will be capped to once per year and aligned with market rates. Tenants can challenge increases through a tribunal and the bill will ban rental bidding wars.

Protections against retaliatory evictions

Tenants will be empowered to challenge poor conditions and unfair rent increases without fear of eviction, and landlords will be prevented from using rent increases as a backdoor means to evict tenants.

New private rented sector ombudsman

A new ombudsman service will provide tenants with a way to resolve disputes without going to court.

Establishment of a private rented sector database

A national database for landlords will be established. Landlords will need to register on the database, and only compliant landlords will be able to use certain eviction grounds.

Tenant rights to pets

Tenants will gain the right to request a pet, which landlords cannot unreasonably refuse. To protect landlords, tenants may be required to take out pet insurance to cover potential damages.

Awaab’s Law

The bill extends Awaab’s Law, setting legal timeframes for landlords to address serious health and safety hazards such as mould.

Ending discrimination

Landlords will no longer be able to discriminate against tenants receiving benefits or those with children.

Strengthening local authority powers

The bill enhances the enforcement powers of local councils, allowing them to issue penalties and take legal action against non-compliant landlords. Councils will also be required to report on their enforcement activities.

Revised grounds for possession

The bill clarifies and expands the grounds for possession to ensure landlords can reclaim their properties when necessary. The threshold for mandatory eviction for tenants in rent arrears will be increased from two to three months.

What landlords and agents can do to prepare

Although the bill is proposed at this stage, there are several things landlords and letting agents can do to prepare for any changes in legislation.

• Ensure property compliance by reviewing current properties and conducting thorough rental inspections to address any hazards or maintenance requirements.
• Strengthen tenant referencing to prevent disputes with thorough checks.
• Adopt advanced technologies such as SME Professional’s property software CRM to help meet your legal responsibilities and comply with legislation.
• Stay informed by keeping track of legislative updates and potential amendments and providing relevant information to your team. You can find more information on the Government website or more help and resources for Propertymark members on their website.