We will continue to support landlords and letting agents through this by either lobbying specific amendments or providing help and advice during the implementation to help you manage your properties and stay compliant.
Quick overview:
- Section 21 will be abolished with new grounds added to section 8.
- Fixed term tenancies will no longer exist. All tenancies will be periodic.
- Tenants can give 2 months’ notice if they would like to move out. There is no initial moratorium period at the start (under the last government this was going to be 4 months before 2 months’ notice could be given).
- Landlords have different notice periods based on the scenario section 8 is being used for.
- There will be a student ground for possession, but it isn’t as we agreed with the last government. It currently excludes (intentionally or unintentionally) 1 and 2 bed properties by specifying HMOs which could be 10% of the market. We will be looking at this as a possible amendment to lobby and it’s likely that the NRLA are also going to be looking at this.
- The government are not in favour of rent controls. However, standard in-tenancy rent increases cannot be written into contracts. A section 13 notice will need issuing, and increases should be at the market rate. There will be an appeals process for this.
- Rent repayment orders will be extended and in particular to superior landlords (Rent 2 rent) or landlords that haven’t followed the current procedure for rent increases.
- We will need to sign-up with a Landlord Ombudsman.
- Awaab’s Law is going to be extended to the PRS. Mould is a category 1 hazard in HMOs so this would likely have the most impact on non-licensable single lets.
- The Decent Homes Standard will be applied to the PRS but the requirements for this aren’t at the same level as licensing so again this will mainly impact single lets.
- Landlords and properties will need to be registered on a central database.
- This is likely to come in during the first half of 2025 but simultaneously for new and existing tenancies.
There is nothing on short stay lets or the energy side, but we are expecting changes in this area. This would likely take the form of planning and licensing of AirBnBs and an EPC target of C by 2030 for all rental properties.
Link to the Guide:
https://www.gov.uk/government/publications/guide-to-the-renters-rights-bill/82ffc7fb-64b0-4af5-a72e-c24701a5f12a