17:04 PM, 13th September 2024, About 2 months ago 9
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The Labour government’s announcement of the Renters’ Rights Bill is proposing the biggest shake-up of England’s private rented sector in England for 36 years.
The Bill, which Labour claims is aimed at improving security and stability for tenants, introduces a raft of changes that landlords need to be aware of.
Among the most controversial are the abolition of fixed term assured shorthold tenancies with periodic ones, and the ending of Section 21 ‘no-fault’ evictions.
The introduction of periodic tenancies means tenants can remain in the property indefinitely, provided they serve two months’ notice to quit.
Also, the removal of Section 21 evictions means that, under the new Bill, landlords will need to rely on specific grounds for possession outlined in Section 8 notices.
These grounds encompass situations where a tenant breaches the tenancy agreement, for example, by not paying rent or causing damage to the property.
The Bill also introduces a mandatory Decent Homes Standard for all rental properties.
While the Bill extends tenancy rights, the government emphasises that landlords will retain ‘robust grounds for possession’ including for rent arrears, anti-social behaviour, or a landlord needing the property back for themselves or their close family.
The Renters’ Rights Bill is currently making its way through Parliament and Labour is hopeful that it will become law in the summer of 2025.
The team at Property118 will update this guide for PRS landlords when amendments are agreed.
Some landlords, particularly student landlords, may be concerned about what periodic tenancies will cover.
The Bill’s detail highlight that there are exemptions to this move periodic tenancies – Property118 is currently trying to find out what those exemptions are.
Currently, fixed-term tenancies require renters to pay rent regardless of a property’s condition and limit their ability to move due to factors like relationship changes, new job opportunities, or homeownership.
Under the new system, all tenancies will be ongoing unless terminated by either party with a two-month notice period.
Labour says this change aims to address the unfairness of renters being forced to pay for substandard housing and provide greater flexibility for both tenants and landlords to adapt to evolving circumstances.
The Renters’ Rights Bill clarifies and expands grounds for possession while safeguarding tenants from arbitrary eviction and providing adequate time to find new housing.
Landlords must initiate court proceedings for tenant eviction, as under the current system. They must present evidence to substantiate the grounds for possession.
Mandatory grounds require court-ordered eviction if proven, while discretionary grounds allow courts to consider the reasonableness of eviction, even if the ground is met.
For tenant misconduct, such as anti-social behaviour, property damage, or significant rent arrears, landlords may issue notices at any point during the tenancy.
To support tenants facing temporary financial difficulties, the Bill introduces enhanced protections.
The mandatory threshold for eviction due to rent arrears will increase from two to three months, and the notice period will extend from two to four weeks.
This allows tenants more time to repay arrears and remain in their homes while mitigating excessive costs for landlords.
Landlords may still use discretionary rent arrears grounds, such as repeated late payments.
The Bill also addresses landlord circumstances that may necessitate property possession, such as selling or moving in.
Tenants enjoy a 12-month protected period at the start of a tenancy, during which landlords cannot evict them for these reasons.
Landlords must provide four months’ notice when using these grounds, allowing tenants more time to find alternative housing and reducing the risk of homelessness.
In specific sectors where accommodation serves particular purposes, such as temporary or supported housing or ‘stepping stone’ accommodation, limited possession grounds will be introduced to ensure an adequate supply of properties.
To enforce compliance with other Bill requirements, landlords who fail to protect tenant deposits or register their properties on the private rented sector database will be barred from obtaining possession.
However, landlords can rectify non-compliance to regain possession, except in cases of anti-social behaviour.
The Renters’ Rights Bill will empower PRS tenants to challenge excessive rent increases, aligning with government policy.
This prevents, Labour says, landlords from using rent increases as a means of eviction while allowing for adjustments to reflect market rates.
All future rent increases in the PRS will follow a standardised process.
Landlords may raise rents once annually to the market rate, which is the rent achievable through new advertisement.
A simple ‘section 13′ notice must be served, specifying the new rent and providing at least two months’ notice.
If tenants believe the proposed rent increase exceeds the market rate, they can challenge it at the First-tier Tribunal. The Tribunal will determine the appropriate market rent.
Labour says it will reform the Tribunal to bolster tenant confidence in challenging poor practices and enforcing their rights.
Currently, tenants risk the Tribunal increasing the rent beyond the landlord’s initial proposal.
This practice will be eliminated, ensuring tenants never pay more than the landlord’s requested amount.
Also, backdating rent increases will be barred, with the new rent applying from the Tribunal’s determination date.
In cases of undue hardship, the Tribunal may defer rent increases for up to two months.
To guarantee tenants’ appeal rights and prevent backdoor evictions, rent increases through other means, such as rent review clauses, will be prohibited.
This will ensure clarity regarding rights and responsibilities for all parties.
Labour is planning to implement the new tenancy system for the PRS in a single stage.
On this date, all private tenancies, including existing ones, will transition to the new system.
New tenancies signed on or after this date will also adhere to the new rules.
Existing fixed-term tenancies will convert to periodic tenancies, and landlords will no longer be able to serve section 21 or old-style section 8 eviction notices.
Labour says this unified approach avoids a confusing two-tier system and provides immediate security for all tenants.
The government also says it will collaborate closely with industry stakeholders to ensure a smooth transition to the new system, providing ample notice before implementation.
The bill specifically addresses a seamless transition, avoiding abrupt changes, such as maintaining the validity of rent increases and notices issued prior to implementation.
How will a landlord regain possession in future?
The Renters’ Rights Bill will abolish section 21 evictions, meaning landlords must instead use a section 8 ground for possession – these are specific circumstances in which a landlord can regain possession.
The bill will ensure landlords enjoy robust grounds for possession. The grounds for possession are outlined in ‘Table 1’ above and cover all circumstances when it is reasonable for a landlord to take their property back.
To regain possession, landlords will serve notice in the prescribed form, giving at least the required notice period to the tenant. As in the current system, landlords will need to go to court if a tenant does not leave and provide evidence that the ground applies.
How will a tenant end a tenancy once the reforms are implemented?
A tenant will be able to end a tenancy by giving 2 months’ notice. The end date of the tenancy will need to align with the end of a rent period.
What evidence will a landlord need to provide?
If a tenant does not leave when an eviction notice is served, a landlord will need to provide evidence in court to prove the relevant ground applies. We will issue guidance to support landlords with this.
Courts are best placed to interpret the available evidence depending on the facts of the case, and we do not wish to restrict this role in legislation. As an example, a landlord might show they have instructed an estate agent and solicitor if they wished to prove they were selling a property.
Will a landlord be able to increase rents in the new system?
The government does not support the introduction of rent controls, and nothing in the bill restricts landlords raising rents in line with market prices.
In the new system, all private rented sector rent increases will be made via the statutory ‘section 13’ process, as amended by the bill. This requires a landlord to complete a simple form, which will be published on GOV.UK, and serve this on the tenant.
Once the form is served, the landlord will not have to take further action. If the tenant accepts the proposed rent increase, they simply need to pay the new amount on the next rent day.
A tenant can dispute the increase by applying to the First-tier Tribunal, if they think it is above market rate. This must be before the starting date of the proposed new rent and tenants should notify their landlord that they are doing so. The bill makes changes to the Tribunal system to support tenants in challenging unreasonable rent increases.
Landlords for social rented tenants who meet the definition of “relevant low-cost tenancies” (as defined in the bill) will retain the current mechanisms for increasing rent. This includes increasing the rent at any point in the first 52 weeks of a tenancy and using review clauses within a tenancy to increase the rent, as they can at present.
When will the tenancy reforms be implemented?
We will introduce the new tenancy system for the private rented sector in one stage. On this date, the new tenancy system will apply to all private tenancies – existing tenancies will convert to the new system, and any new tenancies signed on or after this date will also be governed by the new rules.
A one-stage implementation will prevent a confusing 2-tier system and give all tenants security immediately. We will provide the sector with sufficient notice of the system taking effect and work closely with all parties to ensure a smooth transition.
For tenancies where the landlord is a private registered provider of social housing, we will implement the new system at a later date. This is to allow time to update our Direction to the Regulator of Social Housing so that they can update their Tenancy Standard – this requires a statutory consultation process.
As now, landlords will only need to go through the courts in a small minority of cases where a tenant doesn’t leave at the end of a notice period. Ultimately, we expect our rental reforms to reduce demand on the courts because only cases where there is a clear, well-evidenced ground for possession will be able to proceed.
We want to ensure that wherever possible court action is the last resort. The Renters’ Rights Bill makes provision for the ombudsman to provide landlord-initiated mediation, enabling disputes to be resolved before they escalate to court. We are working with the Ministry of Justice to explore further options for early dispute resolution.
However, where a dispute cannot be resolved through other methods, the involvement of the courts will continue to be a necessary part of the possession process, to ensure that landlords have proper grounds for proceeding. The Ministry of Housing, Communities and Local Government is working with the Judiciary, the Ministry of Justice and HM Courts and Tribunals Service to ensure that the county court is prepared for the changes to the tenancy system.
We will continue to work towards digitising the possession process so that, when court action is required, it is more efficient and easier for landlords and tenants to understand.
The Renters’ Rights Bill will establish a new Private Rented Sector Landlord Ombudsman service.
All private landlords in England with assured or regulated tenancies, including those using managing agents, will be legally obligated to join.
Tenants can use the service free of charge to file complaints about landlords’ actions or behaviours.
The service will offer fair, impartial and binding resolutions for tenants, with the power to compel landlords to issue apologies, provide information, take corrective actions, or pay compensation.
Landlords will also benefit from the service by resolving tenant complaints efficiently and cost-effectively.
The ombudsman service will also provide guidance and support to landlords to enhance their complaint handling practices.
The Bill includes robust enforcement measures for the ombudsman service.
Local councils can take action against landlords who fail to join or against those who market PRS properties without registration. This includes civil penalties of up to £7,000 for initial breaches and up to £40,000 or criminal prosecution for persistent or repeated breaches.
Tenants may seek rent repayment orders against landlords who persistently fail to join the ombudsman service.
Landlords must comply with ombudsman decisions. Non-compliance may result in expulsion from the scheme and subsequent local council enforcement action.
However, landlords can rejoin the ombudsman service by taking necessary steps to become compliant.
When will the ombudsman service be introduced and landlords be expected to sign up? Will they be expected to pay for membership?
The ombudsman service will be introduced as soon as possible after Royal Assent. Landlords will be given notice of the date by which they will be required to sign up to the ombudsman service and sufficient time to make appropriate arrangements.
We expect that landlords will likely be required to pay a small annual fee per PRS property. The ombudsman service will set this fee based on the costs of operating an effective service and we will work with them to make sure it is proportionate and good value.
How will a tenant challenge their landlord using the ombudsman service and what powers will it have to help tenants resolve their complaints?
The ombudsman service will independently and impartially investigate tenant complaints. If the service determines that the landlord acted unreasonably or unprofessionally when handling a tenant’s original complaint to the landlord, the ombudsman will be able to tell a landlord to take or cease taking an action, issue an apology or explanation, and/or award compensation to put things right. Landlords who are members of the ombudsman must abide by the ombudsman’s decisions.
We expect tenants will be able to contact the ombudsman online or by telephone and we will work to ensure that all tenants, including those who are vulnerable, can access the service.
What will tenants be able to complain to the ombudsman service about and will prospective and former, as well as current, tenants be able to make complaints?
Broadly, the ombudsman service will consider complaints from tenants regarding actions, inactions or behaviours of a landlord which has caused harm or inconvenience. The types of complaint that the service will consider are not included on the face of the Renters’ Rights Bill so the ombudsman can retain sufficient discretion to consider the individual circumstances of each complaint.
When a property is marketed for letting, the landlord will be required to be a member of the ombudsman service. We will also expect landlords to remain members for a reasonable amount of time once they have stopped being a landlord.
This is because things can go wrong for tenants at any point in the rental process, so it is reasonable for tenants to have the opportunity to seek redress for harm or inconvenience caused during the pre-letting period or at the end of a tenancy.
Will landlords be able to complain to the ombudsman about their tenants?
No, it would be unprecedented and inappropriate for landlords to seek binding decisions from the ombudsman service, which is designed to protect consumer rights. Therefore, only tenants will be able to seek redress from the service.
However, we are committed to ensuring that landlords, like tenants, have appropriate access to alternative dispute resolution. We are exploring options for landlord-initiated mediation for landlords to resolve issued with their tenants.
Will landlords who use an agent to manage their property need to join and how will tenants know where to complaint if their landlord uses a managing agent?
Yes. Landlords who use managing agents are still responsible for their own behaviour and still retain legal obligations to tenants – particularly around standards and repairs.
Landlords and agents will remain responsible for their own actions and behaviours, as well as the respective services they have agreed and are legally bound to provide to tenants. Tenants and landlords will still be able to complain about agents and receive redress through the existing agent redress schemes.
If the landlord and agent are both at fault, the provision for cooperation in the bill will allow the PRS Landlord Ombudsman to work with the existing agent redress schemes to conduct joint investigations and, where appropriate, issue joint decisions.
Which organisation will take on the role of the new ombudsman?
The government will pursue the most appropriate route for designating or approving an ombudsman scheme to provide the best service for tenants and landlords.
The administrator of the PRS Landlord Ombudsman Service will be appointed as soon as possible after the bill’s provisions are commenced.
There will be a new Private Rented Sector Database. All landlords of assured and regulated tenancies must legally register themselves and their properties on the database.
Failure to register or provide required information when marketing or letting out a property may result in penalties.
The database will serve as a ‘one-stop shop’ for landlords, providing access to relevant guidance through a single platform.
This will facilitate effective service, helping landlords understand their obligations and demonstrate compliance.
The database will also be used to communicate changes in requirements, ensuring landlords have access to up-to-date information.
For tenants, the database will enhance transparency and information availability before and during the rental process.
This empowers tenants to enforce their rights and identify when to escalate property issues with local councils or the Private Rented Sector Ombudsman.
The database will provide local councils with more data on private rented sector properties.
One of the most significant challenges faced by local councils, Labour says, is identifying substandard and non-compliant PRS properties and their owners.
The database will offer a reliable and consistent intelligence source, reducing administrative burdens and allowing council staff to focus on enforcement against criminal landlords.
How will a landlord sign up to the database and what happens if they don’t?
All landlords of assured and regulated tenancies will be legally required to register themselves and their properties on the database. They will be able to do this online.
For those who are unable to register online, we will offer alternative offline ways for registrations to be processed.
Landlords in breach of the duty to register on the database will not be able to get a possession order except if the ground under which possession is sought is ground 7A or ground 14 (tenant anti-social behaviour).
Local councils will be able to take enforcement action against private landlords that fail to join the PRS Database. If a landlord lets or advertises a property without it first being registered on the database, they can be issued with a civil penalty of up to £7,000 by the local council. If a landlord repeatedly breaches the requirement, or if they commit a serious offence such as providing fraudulent information to the database, they may be issued with a civil penalty of up to £40,000 or could face criminal prosecution.
Who will pay for the database? How much will it cost landlords?
Landlords will be required to pay to register on the database. However, we will work to ensure that the fee is proportionate and good value.
What information will be available to the public on the database?
We are still determining the exact information which will be available to the public and this will be set out in regulations. We are planning for this to include information related to property standards.
We are committed to carefully balancing landlords’ privacy concerns with private tenants’ need to make informed decisions about their housing options when designing a new system. Tenants will be able to access necessary information in relation to their landlord and details of the property, but we do not envisage that all data will be publicly accessible.
How will the database interact with the Database of Rogue Landlords?
We intend for the Private Rented Sector Database to replace the functionality of the Database of Rogue Landlords relating to private sector landlords.
We will make certain details relating to offences viewable to tenants and prospective tenants. Opening up this information will ensure tenants can make a more informed rental decision – leading to a better rental experience. However, we will also ensure that this aim is proportionate to landlords’ right to privacy.
Will the introduction of the database mean the end of selective licensing?
Selective licensing remains a valuable tool when used appropriately and combined with other measures. It enables local authorities to target the improvement of standards and safety in areas suffering from issues such as poor housing quality, high levels of deprivation and anti-social behaviour. It has the ability to drive better outcomes for local residents, tenants and responsible landlords.
Our plans to deliver a Database will provide access to information about privately rented properties and tackle one of the biggest and most time-consuming barriers faced by local councils when enforcing standards – identifying poor quality and non-compliant properties and who owns them.
We will work with local councils to gather more information about their selective licensing schemes to ensure the schemes are continuing to deliver the intended outcomes.
When will the database be launched?
The database is currently undergoing digital development and we aim for the service to be operational as soon as possible following the passage of primary and secondary legislation.
The next stage of development will be the ‘Beta phase’, which will involve building and testing iterations of the service with key users. This testing phase will also inform the requirements for the content of the database which will be set out in regulations.
We will continue to engage with stakeholders and users as we take forward the development of the service and we will conduct extensive testing of the new service ahead of the legal requirement for private residential landlords to register on the database coming into force.
Labour says that ‘rental discrimination against families with children or people who receive benefits have no place in a fair and modern housing market’.
Everyone in the PRS deserves a safe and decent home, and prospective tenants should be evaluated on an individual basis.
The Renters’ Rights Bill will directly address rental discrimination practices in the PRS.
It will target both overt discriminatory practices, such as ‘No DSS’ advertisements, and indirect practices used by landlords or letting agents to prevent individuals from entering tenancies.
Landlords and agents will retain the final say on who rents their properties and may conduct referencing checks to ensure sustainable tenancies. These checks can be based on affordability but not on the presence of children or receipt of benefits.
These protections are being introduced in England, and we have collaborated closely with the Welsh and Scottish Governments to extend rental discrimination provisions to Wales and Scotland through the Renters’ Rights Bill.
Won’t landlords just discriminate in less obvious ways?
We are taking direct action to stop both overt discriminatory practices, such as ‘no DSS’ adverts, and indirect practices intentionally designed to prevent families with children or people who receive benefits from entering into a tenancy.
We will work to ensure that tenants know their rights; landlords and agents understand what is expected of them; and local authorities have the resources and skills to enforce effectively.
What about if properties aren’t suitable for children?
Landlords and agents should consider applicants on their individual circumstances.
A 1-bedroom flat for example might be suitable for a mother with a baby but not for a parent with 2 teenage children, where this level of occupancy would mean that rules on overcrowding were breached.
It will be for those letting properties to consider whether excluding prospective tenants with children represents a proportionate means of achieving a legitimate aim and landlords would need to be able to evidence their decision on a case-by-case basis.
My mortgage/ lease says I can’t let to those in receipt of benefits or with children, what happens then?
Our measures ensure that terms in mortgages and superior agreements which restrict the letting of a property to private renters without children or who receive benefits are of no effect, preventing any breach of contract where a landlord fails to fulfil them.
Therefore, a landlord cannot be compelled to discriminate by their mortgage or superior landlord agreement.
A superior landlord may only include restrictive terms on letting to those with children if it is a proportionate means of achieving a legitimate aim.
My insurance contract says I can’t let to those in receipt of benefits or with children. What should I do?
Existing insurance contracts that begin before the legislation comes into force will be exempt from the provisions until the insurance contract comes to an end or is renewed.
Many insurance companies already offer services to landlords who rent to tenants with children or receiving benefits.
Any restrictive terms in a new insurance contract following the legislation coming into force will be of no effect, preventing any breach of contract.
When will you implement the rental discrimination prohibition?
Following Royal Assent of the Renters’ Rights Bill, we will allow time for a smooth transition to the new system. We will support tenants, landlords and agents to understand and adjust to the new rules, while making sure that people who receive benefits and families with children can benefit from the reforms as soon as possible.
We are engaging with the sector on the implementation of the rental discrimination provisions and will provide more information in due course.
How will this be enforced in England?
We are giving local councils powers to impose civil penalties on landlords and anyone acting directly or indirectly on their behalf up to £7,000 for breaches. Those issued with a financial penalty will be able to appeal the penalty at the First-tier Tribunal.
Landlords and letting agents can receive multiple penalties for continued and repeat breaches.
Our enforcement system will keep all routes to justice open for tenants. Prospective tenants will be able to pursue a breach through their local council or through the courts and seek redress through the new Private Rented Sector Ombudsman and letting agent redress schemes.
Which nations do the rental discrimination provisions apply to?
We are introducing these protections in England and have worked closely with the Welsh and Scottish Governments to extend the rental discrimination provisions to Wales and Scotland through the Renters’ Rights Bill.
As housing is devolved and enforcement mechanisms vary, the penalty for a breach of rental discrimination provisions in Wales and Scotland will be a criminal offence in line with the wider housing framework of the devolved administrations.
The Renters’ Rights Bill will eliminate the unfair practice of rental bidding, which pits renters against each other.
By prohibiting rental bidding, Labour says it will create a more equitable rental market and curb the actions of unscrupulous landlords who exploit the housing crisis by forcing tenants to bid for properties.
Once enacted, the Renters’ Rights Bill will require landlords and letting agents to publish an asking rent for their properties.
It will also prohibit them from soliciting, encouraging, or accepting bids above this price.
By directly addressing rental bidding, the Bill will enhance the experiences of prospective tenants throughout England and put an end to the exploitative practices employed by a minority of unscrupulous landlords.
Won’t this just encourage landlords to leave the market?
The majority of landlords do not currently encourage rental bidding, and the government does not expect these reforms to have a destabilising effect on the rental market.
When will you implement the rental bidding prohibition?
Following Royal Assent of the Renters’ Rights Bill, we will allow time for a smooth transition to the new system. We will support tenants, landlords and agents to understand and adjust to the new rules, while making sure that prospective tenants can benefit from the reforms as soon as possible.
We are engaging with the sector on the implementation of the rental bidding provisions and will provide more information in due course.
How will this be enforced in England?
We are giving local councils powers to impose civil penalties on landlords and anyone acting directly or indirectly on their behalf up to £7,000 for breaches.
Landlords and letting agents can receive multiple civil penalties for continued and repeat breaches.
Our enforcement system will keep routes to justice open for tenants. Tenants will be able to pursue a breach through their local council and seek redress through the new Private Rented Sector Ombudsman and letting agent redress schemes.
Will local government be funded to enforce the rental bidding provisions?
The government will carry out a New Burdens exercise to analyse the financial implication on local government of implementing and administering these provisions.
In line with the New Burdens doctrine, the government will fully fund the cost of any additional duties on local government.
Which nations do the rental bidding provisions apply to?
Housing is a devolved matter. The rental bidding provisions apply only in England.
Labour says that pets can significantly enhance the lives of their owners, and it is dedicated to supporting responsible pet ownership in the PRS.
The Renters’ Rights Bill will ensure landlords cannot unreasonably deny tenant requests to keep pets in their homes, allowing tenants to challenge unfair decisions.
Labour adds that it understands that some landlords have concerns about potential pet-related damage.
To address this, the Bill will permit landlords to require insurance coverage for pet damage.
This will provide landlords with assurance that any pet-caused damage can be addressed, and the responsibility for preventing and resolving such damage will fall on the tenant.
Labour will publish guidance for landlords and tenants before the new rules take effect.
What is a reasonable reason for a landlord to refuse a tenant having a pet?
Landlords will be required to fully consider all requests on a case-by-case basis. Due to the diversity of landlords, tenants, and properties in the private rented sector, it would not be possible to legislate for every situation where a landlord would or would not be able to ‘reasonably’ refuse a pet.
It will always be reasonable for a landlord to refuse a request when their superior landlord prohibits pets. We will provide guidance to landlords and tenants to support decisions.
What happens if a landlord unreasonably refuses?
Where a tenant feels that a landlord has unreasonably refused their request, they will be able to escalate their complaint to the Private Rented Sector Ombudsman or they could take the case to court.
A final decision will be based on the evidence provided by both parties.
What happens if a pet damages a property?
We are amending the Tenant Fees Act 2019 so that landlords can require insurance to cover any damage caused by pets living in the property. If the landlord takes out the insurance, those reasonable costs will be recoverable from the tenant.
Tenants also pay a tenancy deposit which can be used for damages although landlords should not attempt to recover costs twice for the same damage.
In the very rare cases where the insurance and deposit do not cover the cost of the damage, a landlord could take the tenant to court to recoup additional funds in line with wider rules in the sector.
Labour says that everyone deserves a safe and decent home. To ensure this, it is introducing a Decent Homes Standard (DHS) for the PRS.
Applying a DHS to privately rented homes will guarantee tenants benefit from safe and habitable dwellings.
The Bill will authorise regulations outlining DHS requirements for PRS homes and equip local councils with effective and proportionate enforcement authority.
Labour adds that it recognises that most landlords already provide decent housing and excellent service to their tenants.
The DHS will assist landlords by clarifying requirements and creating a level playing field, supported by consistent enforcement.
Which PRS properties will be required to meet the DHS?
The DHS will apply to the vast majority of private rented homes, including all PRS homes let on assured tenancies. The standard will also apply to privately rented supported housing occupied both under tenancies and licences. This means that most tenants will benefit from the new standard.
The bill also includes a power to extend the scope to include other types of tenancies and licences. This will allow us to respond to changes in the sector or evidence of poor condition in some PRS property types that are not covered by the standard.
How will the Decent Homes Standard be enforced?
If a privately rented property fails to meet DHS requirements, the local council will have a range of enforcement mechanisms available. This includes, for example, issuing an improvement notice requiring the landlord to remedy the failure within a specified timescale.
Landlords who fail to comply with enforcement action can be subject to a civil penalty or criminal prosecution. If such an offence is committed, the tenant or local council can also apply to the First-tier Tribunal for a rent repayment order.
We will be introducing a legal duty on landlords to ensure their property meets the DHS. For landlords who fail to take reasonably practicable steps to keep their properties free of serious hazards, local councils will also have a new power to issue civil penalties of up to £7,000. This will incentivise all landlords to proactively manage and maintain the safety and decency of their properties.
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Beaver
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Sign Up11:27 AM, 13th September 2024, About 2 months ago
I'm trying to keep an open-mind about this and I know that as yet this is not law and the bill has to make its way through both houses. At the moment I cannot see anything in the proposals that do not increase a landlord's costs and risk and therefore that is not inflationary. I can't yet see anything that would reduce your risk by stopping you having to go through the courts for maybe 12 months if you have a problem tenant or a tenant that doesn't pay.
The SNP have recently demonstrated that rent controls drive rents up, although we already knew that. As soon as there is even a sniff of rent controls landlords and agents have no choice but to push rents up now in case they can't do it later, or they have to sell which of course exacerbates the supply problem. Historically it made sense to hold rents down a bit to encourage longer term tenancies and reduce the risk of void periods: But that's not the case in a system where central or local government applies rent controls; in such a system, every time you advertise a property for rent it must be at the maximum, especially where governments mandate extra costs such as EPC upgrades.
At the moment the only option you have as a landlord to reduce your risk is to raise rents. On these two points in the labour proposals:
"Landlords may raise rents once annually to the market rate, which is the rent achievable through new advertisement."
"To guarantee tenants’ appeal rights and prevent backdoor evictions, rent increases through other means, such as rent review clauses, will be prohibited."
The devil may be in the detail but does this mean that in effect once a tenant is in there you can't review and raise the rent? What evidence would you have to have to justify a rent increase under these proposals? And how would you do it without a rent-review clause?
Fernando
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Sign Up11:59 AM, 13th September 2024, About 2 months ago
I believe that if the bill passes as it stands, it will negatively impact the private rental sector (PRS). Landlords may become more selective about who they rent to, despite the non-discriminatory clauses, and are likely to raise rents to safeguard their investments—especially if tenants can leave after two months, while landlords have already incurred significant costs in setting up the tenancy. Additionally, the increased bureaucracy and associated costs, such as rental databases, an ombudsman, and a more complex eviction process, will not benefit tenants.
The government should take lessons from what has worked—and what hasn't—in other countries. I own properties in both England and Spain, and while tenant protections are strong in both (e.g., main residence contracts in Spain are for a minimum of five years, although they can be ended earlier if the landlord plans to sell or move in), Spain provides landlords with substantial tax benefits and less bureaucratic red tape. For instance, there is no requirement for annual gas checks or five yearly ECIR. This doesn't make housing in Spain less safe, as they have mandatory five-year gas inspections, which seem more reasonable.
The costs and bureaucracy of reclaiming a property, even for valid reasons, will be excessive, especially considering the significant delays in the court system. While there may be modifications as the bill progresses through various readings, I expect many landlords will reconsider whether it’s still worth renting out properties in the private sector. I am certainly one of them.
Reluctant Landlord
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Sign Up12:16 PM, 13th September 2024, About 2 months ago
WTAF? Is this April 1st?
Housing crisis to PRS wipeout in less than a year from now if all this takes place.
I reading this correctly...the fact that the banks will be essentially forced into changing the terms of an existing B2L mortgage so that any clauses are not 'discriminatory' will only mean one thing - the cost of the loan to the LL will increase and we all know what happens next...
Any tenants best be looking to buy a tiny plot of land to put a tent on when this tsunami hits!
TheMaluka
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Sign Up12:39 PM, 13th September 2024, About 2 months ago
An experiment at the landlords expense which will surely fail for Landlords, Tenants and the government.
Downsize Government
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Sign Up13:12 PM, 13th September 2024, About 2 months ago
At the moment I issue a tenancy agreement each year. If the law changes, relationship changes or aspects change that require amending this is done on the tenancy agreement. Where it will now be periodic how do you stop the tenancy agreement from being out of date or not appropriate if the tenant does not need to re-sign?
Robert
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Sign Up14:20 PM, 13th September 2024, About 2 months ago
Reply to the comment left by Downsize Government at 13/09/2024 - 13:12
My block management have it written into the lease that they can accept or reject an application from a prospective tenant. Are the government seriously suggesting that leases be overridden?
Also, I doubt whether you can legally override an AST which still has a fixed term to run.
I am looking forward to seeing what Tessa Shepperton has to say about the legality of what is being proposed.
MasterG
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Sign Up15:46 PM, 13th September 2024, About 2 months ago
So every single tenant will appeal every single rent increase. Why wouldn't they? They have nothing to lose if the tribunal cannot order an increase above what the landlord has proposed. At the very minimum, the tenant will get a delay in any increase until the tribunal has made a decision. The tribunals will be swamped, delaying decisions even further. Madness!
Cider Drinker
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Sign Up18:59 PM, 13th September 2024, About 2 months ago
Reply to the comment left by MasterG at 13/09/2024 - 15:46
If my tenants refuse a reasonable rent increase one year they will be presented with a much higher increase the following year.
Robert
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Sign Up11:58 AM, 14th September 2024, About 2 months ago
Rent controls by the back door. If tenants do not have to pay the new rent if they challenge it, they will all be encouraged to do so. Who would pay it if they know they can kick it into the long grass? The government only has to withhold funding from the tribunal and no landlord will be able to raise rent during a tenancy.
The NRLA need to argue that the rent rise must apply until the tribunal finds otherwise.