Renters' Rights Bill - Latest

Renters' Rights Bill - Latest

With Government back after their summer recess, the Renters’ Rights Bill reached the “ping-pong” stage in the House of Commons last night. Almost every amendment proposed by the Lords was rejected with Minister of State for Housing, Communities and Local Government, Matthew Pennycook MP, claiming that the proposed amendments “undermined the core principles of the bill” which was to provide greater security to tenants.

We already knew that Section 21 eviction notices are to be scrapped in favour of Section 8 notices where a landiord will have to provide the tenant with a reason for the eviction and tenancies will transfer to a periodic basis rather than being negotiated on a fixed term. We also knew that Decent Homes Standards will be applied to the private rented sector and that Awaab's Law will be introduced to tackle damp and mould in properties. Landlords will also be held to account through a Landlord Register.

But for landlords with property in King’s Lynn & West Norfolk, should the bill now proceed as the Government proposes, the most impactful decisions from the rejected amendments will be:

·      Pet deposits 

The proposal to increase security deposits by the equivalent of 3 weeks’ rent to cover potential pet damage was rejected as it was believed that it would be a barrier to pet ownership. The proposal to request insurance cover for pet damage was also rejected as there are insufficient products on the market. 

As a result, the maximum amount that can be requested for a security deposit will remain at the equivalent of 5 weeks’ rent regardless of circumstance, although tents will have a right to request a pet which must be considered by the landlord on a case-by-case basis. Although a landlord will not be able to “unreasonably refuse” a request, this doesn’t equate to a blanket right to have any pet.

·      Re-letting Periods 

Where a landlord serves notice on a tenant in order to sell, there must be a period of 12 months before the same landlord can market the property for re-let with new tenants. The Lords had proposed that this was reduced to 6 months to avoid properties sitting empty, especially when there’s already a shortfall of available property, but this was rejected to ensure tenant protection from backdoor evictions.

What happens next? 

The Bill now bounces back to the House of Lords, where peers can challenge the Government’s decisions. Both Houses have to agree on everything before the bill receives Royal Assent and becomes law. However, it’s predicted that given the Government’s majority and firm position peers are expected to agree rather than risk further delays. As yet, however, there is no date set for this and a transition period will also have to be set, which is also yet to be determined, so for now it’s a case of carrying on as normal until further decisions are made.

What should landlords do now?

As the new legislation takes shape, it’s essential that you take stock of your rental investment within the new framework. Consider your current situation alongside your long-term goals and how they sit within the options you have now and once the Renters’ Rights Bill becomes law. 

It may be a case that the changes will make little impact. Most tenancies are ended at the request of the tenant rather than the landlord, especially as we always aim to find the most suitable tenants for your property to off-set potential risks. However, paying attention to the latest developments can help you make proactive decisions to suit your needs.

Contact us for a chat and we can look at how the legislation affects your individual needs.

Effective tenancy management will also be essential in the new landscape. At Brittons Lettings we’re ideally poised within the rental market in King’s Lynn and West Norfolk due to our local experience combined with professional expertise. Our processes and practices ensure that your tenancies are robustly and fairly managed in accordance with legislation, giving you peace of mind that you’re in the strongest position as a landlord. 

To navigate the new lettings landscape in the best way possible, let Brittons let for you.