The Renters Rights Bill: what does it mean for Landlords?

The Renters Rights Bill will abolish Assured Shorthold Tenancies (ASTs) and section 21 no fault evictions. It will also end fixed term assured tenancies so that all tenancies will be ‘periodic’ with tenants able to stay in their home until they decide to end the tenancy by giving 2 months’ notice. Once adopted the new law will mean that landlords will only be able to recover possession of their property by relying on one of the grounds for possession.

The Bill introduces new grounds for possession including where the landlord or landlord’s spouse, partner or family member requires the dwelling as their only or principal home or where the landlord wants to sell. There is also a new ground for possession related to students in HMOs (Ground 4A) allowing landlords of full-time student tenant to recover possession at the end of the academic year. Landlords must give prior written notice that possession is required for the next student group of incoming students.

In addition, it is proposed that some of the existing grounds will be altered, for example, the rent arrears ground (Ground 8) will require 13 weeks or three months of rent arrears instead of the current eight weeks’ or two months’ with the notice period given to tenants increasing from 2 to 4 weeks.

The Bill also seeks to impose limits on rent increases so that landlords cannot rely on contractual rent review clauses in tenancy agreements. Rent increases will be limited to once a year, and any increase will be capped at the market rent. Landlords must serve a prescribed form of notice of the proposed increase and tenants will have the right to challenge this at a tribunal.

The Bill promises a transformative new tenancy system with a Private Rented Sector Landlord Ombudsman; a new national private rental sector database of landlords; a Decent Homes Standard (DHS) with regulations to be made setting out DHS requirements for private rented sector homes and a promise that local councils will be provided with effective and proportionate enforcement powers. It also proposes extending "Awaab's Law" to the private rental sector to ensure that tenants can challenge dangerous conditions such as mould.

The Government are keen to push ahead with making the changes law and we may see it enacted later this year.

If you would like help or advice please contact Johanne Spittle, Director – Litigation & Dispute Resolution at Ware & Kay on York 01904 716000, Wetherby 01937 583210 or Malton 01653 692247 or email johanne.spittle@warekay.co.uk.