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Renters' Rights Bill: An overview and key highlights

Posted October 16th 2024
An overview of the Renters' Rights Bill

The Renters' Rights Bill, which aims to balance tenant protections with your rights and responsibilities as a property owner, had its second hearing in Parliament on 9 October.

While there are no notable changes to the bill, in this blog, we'll highlight some of the key measures from the draft legislation so you can navigate your lettings business with confidence and build positive, lasting relationships with your tenants.

1. Twelve-month secure tenancies

Tenants will now have secure tenancies for the first 12 months, ensuring that as long as they maintain the property and pay rent, you will have a more stable, long-term tenant, resulting in consistent rental income and fewer hassles with frequent turnovers.

2. Extended notice periods

The new rules give you more breathing room when it comes to repossessing or selling your property. You’ll now need to give tenants four months' notice, while tenants must give you two months' notice if they plan to move out. This longer notice period allows you to plan ahead more easily, reducing the risk of empty rental periods and ensuring a smoother transition between tenants.

3. The end of section 21

While Section 21 no-fault evictions will no longer be an option, you will still have clear grounds to regain possession of your property when needed. Whether it’s for reasons like rent arrears or anti-social behaviour, the bill will continue to provide strong protections for you as a landlord.

4. Rolling tenancies

Under the bill, all tenancies will become rolling, periodic ones and tenants will be able to end a tenancy with two months’ notice. Importantly, you’ll still be able to use possession grounds like selling the property or moving family in, but only after the first year of the tenancy. This ensures you have options moving forward while tenants enjoy security in the initial months.

5. Pets allowed, but with insurance

While tenants will be able to request to keep pets, you will also be able to request that tenants get pet insurance to cover any potential damage, giving you added protection. This way, you can allow pets without worrying about damage to your property, and your tenants will be happy too.

6. Restricted rent increases

The bill restricts rent increases to just once per year, and any increase must be in line with market rates (or lower). You’ll also need to give tenants two months’ notice before raising the rent. While this limits how often you can increase rent, it offers you a clear structure and prevents unexpected rent disputes, making your rental income more predictable.

7. National landlord database

A new national database will require all landlords to register, to ensure transparency across the industry. By registering, you’ll be part of a system that helps raise standards and shows tenants that you’re a compliant and trustworthy landlord. It’s a quick step that helps protect your reputation in the long term.

8. Maintaining property standards

The Renters' Rights Bill introduces a requirement that all rental properties must remain in good condition, ultimately protecting your investment and attracting quality tenants. Additionally, strict timescales for addressing health risks under Awaab’s Law mean it’s important as a landlord stay on top of property maintenance issues.

9. A new ombudsman service

A new ombudsman service will be set up to handle disputes between landlords and tenants, so you won’t have to rely on the courts to resolve every issue. Local authorities will also have stronger powers to enforce the new rules, thus opening up more avenues to resolve disputes.

What should you do next?

The Renters' Rights Bill is still progressing, and we will continue to keep you informed as these changes unfold. While some of the provisions in the Renters’ Rights Bill might seem challenging at first, they also offer more structure, stability, and clarity for landlords. By staying on top of these changes, you’ll be in a strong position to continue managing your property effectively, protect your investment, and build positive relationships with your tenants.

However, if you do have any immediate queries or concerns, or just want to speak to us about these changes, then please feel free to contact your local branch for further information.