Your Ultimate Guide to the Renters’ Rights Act
Normally, we don’t start our blogs like this, but:
Heads Up.
As a landlord – or a would-be landlord - there are significant changes in the rental sector just about to become your responsibility, and you need to know about them. No doubt you’re aware of the Renters’ Rights Act. Well, now it’s almost here, and it’s a thing. The Act received Royal Assent last week and will soon pass into law.The government is keeping quiet (for now) about its implementation timeline, but it will happen and it will affect all landlords in some way.
All Change Here
What does this mean for you?
In brief, quite a lot.
Although Brighton Homes only works with decent property owners who rent carefully and legitimately, this new legislation threatens to upset the applecart.
Landlords who look the other way could face trouble. We know you’re not that person, but forewarned is forearmed. Here, we’re looking at a major re-balancing of the relationship between an estimated 11 million UK tenants and their 2.3 million landlords.
Brighton Homes has written this article to provide clear, jargon-free information on the key developments in the Renters’ Rights Act.
Space prevents us from going into too much detail.
In our opinion, you should seek expert advice if you’re unsure. We’re contacting each of our landlords separately to discuss their unique situations. If you’re not yet with us and considering changing your rental agency, get in touch with Brighton Homes for more information. Is your agency taking the time to call you? If not, they most certainly should be.
So, let’s get to it.
Overview of the Renters’ Rights Act
What’s the thinking behind it?
Brighton Homes knows that the vast majority of landlords provide an excellent service. But we also know that throughout the UK, and in particular in less prosperous areas, there are exceptions.
The government is overhauling the private rented sector as part of its manifesto commitment, long considered unjust and insecure for tenants. The new Act aims to empower renters through strengthening their rights and protections. As mentioned, to create a fairer equilibrium between the two parties. And to enable people with a newfound sense of security to put down stronger roots in the properties they consider their homes.
Here are the headlines:
1. Abolition of Section 21 “No Fault” Evictions
You will no longer be able to evict a tenant without a specific reason, moving to a system where you must have grounds under Section 8. However, there’s more to it:
· You can evict a tenant if you sell the property, but you must give four months’ notice – plus you can’t do this within the first 12 months.
· You can evict if a family member plans to move in.
· There are different rules for students in HMOs.
For full details, get in touch with Brighton Homes.
In addition, all tenancies will move to a simpler structure: they will be periodic (no more Assured Shorthold Tenancies). In other words, “rolling” – mainly monthly. Did you know that if you offer a fixed-term tenancy after the Act has been implemented, you could face a fine of up to £7,000?
The upcoming law means that renters will no longer have to pay a fixed amount of rent if a property is substandard. Or, for example if their personal circumstances change and they need to leave.
With a rolling contract, your tenants can give two months’ notice and the tenancy will continue until they do so.
2. Abolition of Rental Bidding
Landlords and agents are now prohibited from asking for or accepting offers ABOVE the advertised rent. You and/or your agency must advertise the rent and you must stick to it, or risk breaking the law.
On rent, you will need to give two months’ notice of an increase, and this can only happen once a year. Know this: your tenants can take you to a tribunal if they consider the rise excessive. The government sees unfair rental hikes as “backdoor evictions”. In other words, a way to force out renters, thus the new law aims to prevent this.
3. Decent Homes Standard
Originally introduced for social housing, there is a new set of criteria outlining what a “decent home” means:
· It must meet a statutory minimum fitness standard
· Be in a reasonable state of repair
· Have modern facilities and services
· Offer thermal comfort
This element also incorporates “Awaab’s Law”. Named after a young boy called Awaab Ishak, who sadly died from an illness caused by mould, social housing landlords are legally required to fix reported damp, mould and other hazards within strict timeframes.
4. Private Rented Sector Ombudsman
An ombudsman will be able to provide an impartial and binding resolution for tenants’ complaints about their landlord. To resolve disputes, you will need to be a part of this.
5. National Landlord Database
A database of private rented sector landlords will help landlords recognise their legal obligations and demonstrate they’re following the law.
As a good landlord, the database will offer you confidence in your position. Plus, it will provide would-be tenants with better information to help them make more informed decisions when or if to rent from you. Finally, it supports local councils to enforce action if needed.
6. Prevention Against Discrimination
Landlords can no longer refuse to rent to applicants with children or those on benefits. Animals apply here, too; you’ll need to give a strong, valid reason not to rent to someone with pets. For example, a lease restriction.
7. Strengthen Local Authority Enforcement
For landlords who break housing laws, including poor standards and illegal evictions, it’s bad news: Local authorities will have a range of investigatory powers and be able to expand civil penalties, and there will be 15 NEW offences that could land you in hot water.
Enforcement officers will have the power to enter premises (both residential and commercial) – without a warrant in some instances. And, landlords will need to provide documentary evidence that they’re meeting all their obligations.
You must know this: As the date has been written into legislation, some of the new enforcement powers will come into force within weeks.
8. Reinforce Rent Repayment Orders
A Rent Repayment order is a legal tool that allows private tenants to recover up to 12 months’ rent from a landlord found to have committed a housing offence. (Also, tenants can claim back housing benefit or Universal Credit.)
The new Act will double the maximum penalty.
What Brighton Homes Thinks
So, there we have it. The time for talking and debate is over.
The new legislation has been over a year in the making and will soon be here in real life. What’s next?
The honest answer is that no one knows. As yet, the government hasn’t set a timeline for implementing the Renters’ Rights Act. Most likely, we will hear over the coming weeks and months and we’re aware that changes will happen in stages.
So for now, in theory, it’s business as usual.
Our message is,
The vast majority of landlords are decent, honourable and follow the rules. But if you want to double down on doing the right thing, the time to act is NOW. If your agent hasn’t contacted you to go through the changes, its time you moved over to a better letting agent in Brighton, like us.
We have all the advice you need. Get in touch with Brighton Homes on 01273 672 333.