Set to become law later this year, the Renters (Reform) Bill will introduce guidelines that will make offer more legal powers to tenants.
With the introduction of the Bill, it has become even more important for private landlords to work with a lettings’ expert like Mullucks to ensure their rental properties will comply with the new legislation.
In this guide, we’ll answer some common questions about the Renters (Reform) Bill and offer insights on how it will affect rental properties in England.
First of all, who will the Renters (Reform) Bill affect?
It is clear that all landlords who have properties in England will be affected by at least some of the Bill. However, with some aspects still being finalised, it’s not yet known how some of the rules apply to landlords of students lets and HMOs.
Will I have to sell my property before the Renters (Reform) Bill becomes law?
In spite of the changes coming with the Bill, it would be a mistake to sell now. After all, landlords are experiencing the highest rental income and best selection of tenants this country has ever seen.
Bear in mind that if you decide to sell in the future, the Bill will allow you to seek possession on this basis. There will also be strengthened grounds for rent arrears and anti-social behaviour.
When the Section 21 notice is abolished, how will I evict tenants?
You may be surprised to learn that only 6% of tenants are evicted via Section 21, so the end of these so-called ‘no fault’ evictions shouldn’t affect landlords.
There will be strengthened grounds for possession and improve court processes, so landlords can quickly and effectively regain access to their properties when a tenant fails to meet their obligations.
Will the Renters (Reform) Bill be passed this year?
Although timings for when this Bill will make its way into law are as yet unknown, there will be a transitory period for existing tenancies even after it is passed.
It is understood that once Royal Assent is received, there would be a lead in time of 6 months for new tenancies and a further year for existing tenancies.
Will landlords have to allow tenants to have pets?
Although landlords can’t unreasonably refuse requests from tenants for pets, in an amendment to the Tenant Fees Act 2019, landlords can insist that the tenant obtains pet damage insurance, which means they’re not automatically compelled to allow a pet.
This also won’t apply to properties where superior leases prohibit pets (such as leasehold flats).
Do we know everything that’s going to be in the Bill yet?
With so much still to be clarified, we’re a long way from knowing everything that will make it into the Bill.
To stay compliant, speak to your local Mullucks branch today.
