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Navigating the Renters’ Reform Bill: A Guide for New Landlords
As a boutique letting agency, Domus Residential is committed to keeping you informed about legislative changes that impact your rental property. The Renters’ Reform Bill, introduced in September 2024, brings significant reforms to the private rented sector in England. Here’s a concise overview to help you navigate these changes:
1. Abolition of ‘No-Fault’ Evictions
The Bill proposes to abolish Section 21 ‘no-fault’ evictions, meaning landlords will no longer be able to evict tenants without providing a valid reason. This shift aims to offer tenants greater security in their homes. However, landlords retain the right to regain possession under justified circumstances, such as:
- Selling the Property: If you intend to sell, you can serve notice to reclaim possession.
- Moving In a Family Member: The Bill allows repossession if you or a close family member wish to occupy the property.
- Tenant’s Breach of Agreement: Eviction remains an option if the tenant violates terms of the tenancy, such as engaging in antisocial behaviour or falling into significant rent arrears.
2. Introduction of Periodic Tenancies
All tenancies will transition to periodic tenancies, eliminating fixed-term contracts. This change provides flexibility, allowing tenants to serve notice with a minimum of two months, while landlords must provide at least four months’ notice to terminate the tenancy, depending on the grounds for possession.
3. Regulation of Rent Increases
To prevent unexpected rent hikes, the Bill stipulates:
- Annual Limit: Rent can only be increased once per year.
- Notice Requirement: Landlords must provide at least two months’ notice before implementing a rent increase.
- Tribunal Appeals: Tenants have the right to challenge unreasonable increases through a tribunal, which will assess and determine the market rent.
4. Establishment of a Private Rented Sector Database
A new digital database, referred to as the “Rented Property Portal,” will be introduced, where each landlord and property will have an entry with unique identifiers. It will be compulsory to have active entries for both the landlord and the property before marketing a property for let. Landlords will be responsible for ensuring their information is accurate and up-to-date.
5. Strengthened Enforcement and Penalties
The Bill introduces stricter penalties for non-compliance, including:
- Rent Repayment Orders: Tenants can reclaim rent paid if the landlord is found in breach of certain obligations.
- Increased Fines: Higher fines will be imposed for serious offences, such as unlawful eviction or harassment.
6. Prohibition of Discriminatory Practices
The Bill explicitly prohibits discrimination against tenants based on their receipt of benefits or if they have children. This ensures equal access to housing for all applicants.
7. Right to Request a Pet
Tenants will have the right to request permission to keep a pet, and landlords must consider such requests reasonably. While you can require pet insurance to cover potential damages, blanket bans on pets will no longer be permissible.
8. Introduction of a Decent Homes Standard
A new “Decent Homes Standard” will be established, setting clear expectations for property conditions. This includes ensuring homes are free from serious hazards, in a reasonable state of repair, and have modern facilities. Landlords will be required to meet these standards to provide safe and comfortable living conditions for tenants.
Preparing for the Changes
As a landlord, it’s essential to familiarise yourself with these upcoming changes and assess how they may impact you in renting your home in Leeds. Working with us to proactively reviewing your tenancy agreements, property conditions, and management practices will help ensure compliance once the Bill becomes law.
At Domus Residential, we understand that navigating legislative changes can be challenging, especially for those new to property letting. Our team is here to provide personalised guidance and support, ensuring you remain compliant and continue to offer quality housing to your tenants.
For more detailed information or assistance with your specific situation, please don’t hesitate to contact us.
*Note: This summary is based on the proposed Renters’ Rights Bill as of March 2025. Legislative processes can result in changes; therefore, it’s advisable to consult the latest updates or seek legal advice.
