Landmark legislation to protect private renters across England has been granted Royal Assent, ushering in a raft of reforms including the abolishment of “no fault” evictions.
The introduction of the Renters Rights Act, arguably one of the biggest changes in policy to the private rented sector for decades, will potentially impact as many as 11million renters across the country according to government figures.
Michael Tatters, Thrings’ Head of Property Litigation, takes a look at the incoming reforms, what’s changing and what impact it could have.
What is changing?
A major policy point in Labour’s election campaign, the reforms were designed to be a step on from the previous Conservative Government’s Renter’s (Reform) Bill which had been progressing through Parliament prior to the general election.
Once rolled out, the Act introduces significant changes to the existing law, including:
- The abolition of Section 21 “no fault” evictions and move away from fixed terms to a tenancy structure where all assured tenancies are periodic.
- Introducing new grounds for possession for landlords.
- Allowing tenants to end the tenancy by giving two months’ notice as long as the end date of the tenancy aligns with the end of a rent period.
- Enabling tenants to appeal excessive above-market rents.
- The introduction of a new Private Rented Sector Landlord Ombudsman, designed to provide quick, fair, impartial and binding resolution for tenants’ complaints about their landlord.
- Creating a Private Rented Sector Database to provide better information to tenants when entering into a tenancy agreement as well as to help landlords understand their legal obligations and demonstrate compliance.
- Preventing landlords from unreasonably refusing requests from tenants to have a pet in the property. Landlords, in turn will be able to require pet insurance to cover any potential damage to the property.
- Applying 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.
- Requiring landlords to adhere to the legal expectations on time frames for making homes safe as set out in “Awaab’s Law” – which previously only applied to social housing;
- Making it illegal for landlords and agents to discriminate against prospective tenants’ characteristics, such as those in receipt of benefits or with children.
- 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.
- Enhancing local authority enforcement powers by expanding civil penalties, introducing a package of investigatory powers and bringing in a new requirement for local authorities to report on enforcement activity.
- Strengthening rent repayment orders by extending them to superior landlords, doubling the maximum penalty and ensuring repeat offenders have to repay the maximum amount.
Originally, the reforms had been proposed to come into force on day one, but this is set to change with the government saying it will outline the rollout of reforms over the coming weeks – likely through a transitional phased approach.
Michael Tatters, Head of Thrings’ Property Litigation team said: “Reform in the rented sector has been a topic long discussed, so to have certainty on the changes will help to provide renters and landlords alike with some much-needed clarity.
“As the name implies, the Act is major push towards supporting renters, with the removal of Section 21 notice evictions and accelerated possession proceedings, seeking to prevent what are regarded as unfair evictions that can put individuals and families at risk.
“These changes, however, will mean attempts to evict will require grounds to do so and will need to go through a court procedure, impacting the already under pressure courts system – potentially causing the process to slow dramatically.
“We are yet to see what action the government will be taking to help the system but would recommend anyone, landlord or tenant, facing challenges around a tenancy agreement to seek legal advice at the earliest possibility to ensure they know how they will be impacted by the changes and what they need to do to be compliant.”
Thrings’ Property Litigation lawyers are experienced in reaching resolution in property disputes, acting for both landlords and tenants, often without recourse to court proceedings, and with an excellent track record when cases do go to Court. To find out more, get in contact.
