Dear All
As I write this, I know many of you remain deeply concerned about the future of the rental market, but I am cautiously optimistic that we now have some clarity and potential timescales in place.
Our sector has been plagued by delays and uncertainty for far too long but the Renters’ Rights Bill, providing a major overhaul of the private rental marked, cleared its second reading in the House of Commons earlier this month.
While I don’t necessarily agree with all of it, it is positive to have a clearer overview and idea of the way forward.
We still don’t have firm dates but Deputy PM Angela Rayner, who is also the Housing Secretary, has pledged to get the new laws on to the statute books as quickly as possible – potentially as early as next summer.
So, what does it mean for the decent, law-abiding, compliant landlords that Town & Country Property Services works with?
This will be the largest reform of housing law since the Housing Act 1988 and there are some far-reaching changes – but also some benefits.
As always, please do contact me if you need further clarification and detail but here is an overview of likely implications. These could change, as the Bill moves through the Houses of Parliament, but major alterations look unlikely, given the size of the Government’s majority.
- Abolition of Section 21 notice and move to a simpler tenancy structure, whereby all assured tenancies are periodic: The legislation will end “no fault” repossessions and accelerated possession proceedings. Grounds for possession will need to be provided in all cases.
- Abolition of assured fixed-term tenancies, removing fixed-term tenancies, of six or 12 months. All tenancies will become periodic, rolling tenancies – with no automatic end date and a minimum term of 12 months.
- Ensuring possession grounds are fair to both parties, meaning landlords can still recover their property if they want to sell or redevelop it. Landlords, or family members, will also still be able to move into the property as their main or principal home. Tenants will benefit from a minimum 12-month protected period at the beginning of the tenancy, during which landlords cannot evict them to move in or sell the property.
- The right to appeal against above-market rents. Landlords will be able to increase their rents to market prices, via a Section 13 notice. An independent tribunal will make a judgement in event of dispute and claims that proposed new levels are too high.
Introduce a new, private rented sector Landlord Ombudsman to provide a hopefully quick, fair and impartial binding resolution for tenants’ complaints about landlords, designed to avoid court proceedings. - Create a private rented sector database to help landlords understand their legal obligations and to demonstrate compliance. This will give our good landlords confidence that they’re doing everything right.
- Giving tenants strengthened rights to keep a pet in the property, meaning they cannot be unreasonably refused. Insurance policies can be requested to cover damage.
- Make it illegal for landlords and agents to discriminate against people in receipt of benefits or with children.
- Strengthening rent repayment orders, doubling the maximum penalty and ensuring repeat offenders pay the maximum amounts.
Please remember that this is an overview of a complex Bill and not an exhaustive list. You can also check out the Government guide at: Guide to the Renters’ Rights Bill – GOV.UK
Looking ahead, and on a positive note, it’s also important to bear in mind that Brighton and Hove has one of the most robust and resilient rental markets in the country and demand for properties remains high.
Our landlords also consistently report they are well supported by our team and that we treat them – and our tenants – from an fair and well-informed position. Rents are competitive and we market swiftly and effectively, keeping voids to an absolute minimum.
Like to discuss this further? Please just pick up the phone or drop me a line and sincere thanks for continuing to work with us.
With very best wishes
Stephen Chipp
steve@tandcpropertygroup.co.uk
