Residential Landlords and the Renters Rights Bill – Time for Landlords to be Proactive Part 1

Thanks to continued pressure from the Home Secretary, Angela Raynor, the Renters Rights Bill is making swift progress through Parliament, despite no impact assessment being provided as to the effect on the private renter sector or the Courts and Tribunal Service.  Quite when the Renters Rights Bill will be given royal assent, and when its provisions will take effect, is still not clear – but the general consensus is any time between July and September 2025.

That doesn’t give landlords, especially those for whom renting out property is not the day job, much time to get their affairs in order. The consequences of falling foul of the new laws under the Renters Rights Bill, are draconian, with increased penalties, more offences, and greater enforcement. Many landlords have decided to get out of the sector, but with no new resources been given to the courts, possession claims will become much slower. Already there is rush by landlords to serve Section 21 notices whilst they still can, so that they are free to sell up.

As the accelerated possession claim route will disappear the costs of possession cases will increase, and the length of time from issue to hearing is likely to increase by 50% – expect the average period to regain possession to increase to between 8-9 months.

The First Tier Tribunal is not to receive any greater funding, meaning rent reviews – which can no longer be written into the tenancy – are likely to take well over a year.

Landlords also need to be certain that their letting agent is fully aware of the new law, as the landlord is equally liable for any acts of his agent. It would be wise to get an indemnity from your agent to cover any mistakes they make, and to ensure that they have professional indemnity insurance to reimburse you for those errors.

If you have decided to stay in the market, whilst we can’t go through every detail – follow along over the next couple of weeks where we will discuss the main points of the new bill and what exactly landlords need to understand. 

If you need further advice or assistance please contact Stewart Bailey or Rowena Buckley.