Residential Landlords and the Renters Rights Bill – time for Landlords to be proactive Part 2

Major Changes for Residential Landlords in the Renters Rights Bill

You may have seen our recent blog post on the upcoming Renters Rights Bill which is due to be given royal assent at any point in the next few months. In this blog, we discuss the major changes which landlords, and their agents, need to be aware of.

• An end to fixed term tenancies.
  • All existing tenancies, and all new tenancies will be monthly periodic tenancies.
• Tenants have a 12 month protected period.
  • Tenants will have a 12 month protected period during which time the landlord cannot evict the tenant under Section 8 – although the tenants can give 2 month’s notice to vacate at any time.
• A written statement of terms has to be given.
  • Currently you can (although it is ill advised) grant a tenancy orally. In future landlords (and their agents) have a duty to provide a written statement of terms to the tenant.
• No marketing or letting on a fixed term, or if the property is not available.
  • This could cause real problems for student landlords who advertise properties for the next academic term before the end of the existing one.
• No bidding wars.
  • Landlords will have to state the rent for the property and cannot engage in a bidding war – you cannot accept a higher rent than that advertised. If this is breached there is a £7000 penalty for each occurrence against the landlord AND letting agent.
• No upfront rent allowed.
  • Landlords will no longer be able to accept rent upfront – apart from the deposit and first month’s rent – so a tenant cannot pay you 6 months’ rent from the outset – and if advance rent is paid it forms a prohibited payment which can be returned to the tenant. This will affect students who pay termly, those who have poor credit histories.
• Rent Review can only follow Section 13.
  • Any existing rent review clause will cease to have effect. Only the Section 13 Housing Act 1988  procedure is allowed. A tenant can apply for a determination of the rent set – and now this would be lower of the proposed rent or market rent – and applies even to the initial rent that the tenant had agreed to.  Advertising and agreeing an inflated rent will be problematic.
• No unreasonable withholding of consent for pets.
  • Landlords cannot unreasonably withhold consent for a tenant’s pet, unless there is an objectively reasonable reason (imagine keeping an elephant in a 1 bedroom flat), or where a superior lease prohibits pets. Landlords can insist on insurance being obtained by the tenant for any damage done by that pet. However, at this time no insurers are yet in the market to provide this insurance.
• No discrimination.
  • Landlords can’t discriminate against tenants or prospective tenants if they have children or are in receipt of benefits.
• Prompt investigation and eradicated of damp – even if it is caused by the tenant.
  • Landlords will be required to ensure all properties comply with the Decent Homes Standard -whereby landlord’s have to make prompt investigation and remedy damp issues – irrespective of whether the damage is being caused by the tenant. The tenant cannot be blamed for causing the damp. Timescales for investigation and remedy are not yet decided for private landlords but fines are likely to be similar to others above – however tenants will also be able to sue for damages for any loss incurred.
• Guarantee’s end on the death of the tenant.
  • Guarantors will no longer be liable from the point of the tenant’s death.

As can be seen, the Renters Rights Bill is set to make a historic shift in the legislation for both landlords, their agents and tenants. If you need further advice or assistance please contact Stewart Bailey or Rowena Buckley.