The Renter’s Rights Bill is currently going through parliament. This bill, when it becomes law, is set to have a significant impact on both landlords and buy-to-let investors.
Aiming to protect the rights of tenants, this bill would introduce a series of reforms that will impact the role and responsibilities of landlords. As a current landlord or prospective buy-to-let investor, it’s important that you stay updated on these changes to help to prepare and stay compliant.
While the bill is not yet law and the timeline for it becoming law is still unclear, here are the key ways it could affect your buy-to-let investment.
Section 21 Evictions (no-fault evictions) abolished
In a big change to eviction law, landlords will need to give a clear reason to remove a tenant from the property rather than using the ‘no-fault’ eviction reason.
Valid reasons for eviction could include:
- Serious rent-arrears
- Anti-social behaviour
- Looking to sell the property
- Looking to move into your property
Periodic tenancies replacing fixed-term tenancies
The time-period of tenancies is also set to change as a result of the incoming bill. All fixed-term tenancy agreements will changed to Periodic tenancies, meaning that your tenants can stay in your property for an indeterminate time period, unless there is a specific legal reason to evict.
Re-letting restrictions
If you decide to evict your tenant on the grounds of looking to re-occupy the property yourself or to sell the property, you are not able to re-let out your property for at least 12 months.
More strict safety standards
The bill also includes more stringent safeguards to ensure that landlords make their homes safe for habitation. These include Awaab’s Law, a law drafted in memory of a 2-year-old who died due to long-term exposure to mould in a rented property, and other more strict adherence to Energy Performance Certificates and other safety requirements.
Restrictions to rent increases
Under the new proposed law, landlords will be limited to only increasing rents a maximum of once every year, through a new process known as Section 13.
Ending blanket bans
The proposed legislation will also bring an end to so-called ‘blanket bans’. This means landlords are no longer able to automatically exclude certain categories of tenants, such as those with children or benefit claimants. Tenants will also be given the right to request that pets be allowed under the tenancy agreement.
Property Ombudsman
The bill also establishes a new Private Rented Sector Ombudsman which aims to settle disputes between tenants and landlords. Registration for the scheme is expected to be mandatory for all private landlords.
Private Rental Database
There is also a database proposed for the private rental sector, with all landlords required to register both themselves and their rental properties on this database.
Any questions?
The changes contained in the new bill are set to create an uncertain period for landlords across the country as they adapt to the new changes and their new legal responsibilities.
For more information about the changes and for more detailed legal advice about how the changes could affect your business and how to ensure compliance, please get in touch with our experienced property team here: Get in touch – XYZ Law Solicitors
Or you can give us a call on +44(0) 3333 588 777 or drop us an email at hello@xyz.law for more information about how these changes could affect you.
