Ready for Some Parliamentary Ping-Pong?

Ready for Some Parliamentary Ping-Pong?

As we rapidly head through August, it’s time to gear up for the next stage of the Renters’ Rights Bill. With the Bill heading back to the House of Commons on 8 September, it will be time for the “ping-pong” phase, as MPs to work their way through the proposed amendments before we know for sure all the details of the pending legislation.

With the Labour party conference being held in Liverpool from 28 September, it’s expected that the Bill becoming law will be a key announcement that week. 

Some things we know. Other details will only be assured as the Bill becomes law.

What We Know

·      Tenancies will switch by default from Assured Shorthold Tenancies (ASTs) to periodic Assured Tenancies. Tenancies will still consist of a balance of rights and responsibilities between landlords and tenants, but there will be fixed end date to any contract. 

·      Section 21 notices will no longer exist. (Although those issued prior to Royal Assent will still be valid as long as they have been served correctly.) Tenancies will either be ended by the tenant giving notice or by the landlord serving a Section 8 notice under the appropriate ground for their circumstances. There will be a mix of mandatory and discretionary grounds to balance the rights for both landlords and tenants.

·      Properties must be marketed at a maximum rent to eliminate bidding wars. Rents can be increased no more than once a year and must be within market pricing.

·      Laws around discrimination will be reinforced. Tenants’ rights to own a pet will also be increased. Tenants will still have to provide their suitability and affordability for a property, however, including the need to pass OFSI requirements and Right to Rent checks.

·      Landlords will be held to account to Health & Safety requirements similar to those currently applied to social housing. This will include Awaab’s Law, which legislates against damp and mould in a property, although the legislation focuses on severe cases, rather than manageable levels that pose no risk to the tenants’ health. 

·      Landlords will have to be part of a Landlord Register, regardless of whether they use a letting agent. Tools will be available to landlords to aid compliance, but landlords are more likely to be held to account. Using a credible letting agent will remain the most robust way for landlords to remain compliant.

What We Don’t Know

·      What the transition period will be. New tenancies can’t be created overnight, and the courts will need to be able to cope with an increase in Section 8 notices. Most commentators are expecting a 6-month transition, but many are pushing for 12 months so that the sector can be better prepared.

·      The exact wording of the new Section 8 notices. The devil will be in the detail ensuring that the right notice is used to end a tenancy when needed, whether due to your needs as a landlord or the actions of the tenant.

·      What will happen around rent in advance. Current proposals are that rent in advance will not be an option for at least the first month and will then be negotiable between the landlord and tenant. 

·      The exact requirements around Health & Safety haven’t been detailed, and the private rented sector isn’t a replica of social housing. There is likely to be some form of nuance in applying standards to the PRS.

·      Requirements around accepting pets in lets. When is property suitable for a pet? How are landlords to be protected from the risk of pet damage? Proposals keep swaying between the need for pet insurance that covers rental property and landlords being able to ask for a larger security deposit.

At Brittons Lettings, we’re keen for the Bill to reach Royal Assent as we’ll finally have the clarity we need to better advise you. The transition phase will be vital, and we will be poised to ensure that you tenancies are managed in line with the new requirements. Our Propertymark membership means that we’ll have access to resources and advice to make the transition as smooth as possible.

And despite the pending changes, the needs of the sector remain the same. For landlords, it’s to source tenants who will treat your property with respect and who will pay the rent on time. It’s to market properties at the best price and to ensure you get the best yield for your investment. And it’s about being able to get your property back when you need it. For tenants, it’s being able to access affordable property that offers a safe and secure home. The other thing that won’t change: our commitment at Brittons Lettings to manage your let in a fair and complaint way.