Government business managers have agreed the date for the final stage of the Renters Rights Bill to be considered by MPs.
The process begins on September 8 – that’s two weeks today – when the legislation formally returns to the House of Commons following its lengthy debate in the Lords before the summer.
The Bill may face further amendments before final approval, which must be agreed to by both the Commons and the Lords – so September 8 could be the start of a ‘ping pong’ between the two chambers, until a final version of the Bill is agreed.
Given the overwhelming size of Labour’s majority in the Commons, it is considered highly likely that the government’s views on any controversial elements will prevail.
Lettings agents’ trade body Propertymark has set out details of the major elements of the Bill as it stands now, and what it believes could be a timeline for implementation – although it stresses that in many dates, no deadlines have been given by the government.
Tenancy reform – It has been made clear that the new tenancy system will be implemented in a single stage, with the move to periodic tenancies, the abolition of Section 21, and the reformed grounds for possession, putting all tenancies on the same footing immediately. These are likely to be the first changes enacted by the UK Government; however, no dates have been confirmed.
Student Accommodation – Purpose-built student accommodation will be exempt from the legislation if the provider is registered for UK Government-approved codes, because these tenancies are not assured. This means they will still be able to offer fixed-term tenancies.
Landlords renting HMOs to full-time students will be able to use the new mandatory Ground 4A, which enables them to regain possession to relet the property to full-time students.
Importantly, landlords and agents must ensure that, before granting the tenancy, the tenants are given written notice of the landlord’s intention to use this ground for possession.
Rent In Advance – The Bill restricts advance rent payments to one month, despite arguments for exceptions for tenants who lack income, credit history, or guarantors.
Rental Bidding – Landlords and agents will be required to publish an asking rent for their property, and it will be illegal to accept offers made above this rate.
New and revised possession grounds – Agents and landlords can expect, in most circumstances, notice periods to be either four weeks or four months, depending on the possession ground being relied upon.
The Bill gives tenants more time to find a home if landlords evict to move in (Ground 1) or sell (Ground 1A). Evidence in support will be required to prevent misuse.
The Bill contains a ‘no reletting period’ although it is so far unknown whether this will be six or 12 months.
Rent reviews and appeals – Increases are limited to once a year, and will need to be communicated to tenants using a standard template form, which the UK Government will provide once the Bill has passed. As now, landlords will still be able to increase rents to market price for their properties, and an independent tribunal will make a judgment on this, if needed.
Private Rented Sector Landlord Ombudsman – All private sector landlords in England with assured or regulated tenancies will be required to join, regardless of whether they use a letting or managing agent.
The UK Government has stated that the Ombudsman will be introduced ‘as soon as possible’ after Royal Assent.
Private Rented Sector Database – The design of the database, including information that will be collected and made publicly available, is still under discussion and will require secondary legislation to be enacted before it can be introduced.
Decent Homes Standard and ‘Awaab’s Law’ – Both already apply to the social rented sector, and the Bill proposes to extend these standards to homes in the private rented sector.
Parliament is holding a separate consultation on the Decent Homes Standard, which indicates that it will be fully implemented by either 2035 or 2037.
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A much more detailed analysis of issues in the Bill is available on the Propertymark website here: https://www.propertymark.co.uk/resource/renters-rights-bill-key-decisions-to-watch-during-the-final-stages.html
This article is taken from Landlord Today