Renters' Rights Bill

We are sharing some recent information from a seminar the team attended and will be breaking down some of the key features of the RRB over the next couple of Blogs.  A reminder, these amendments are still not yet in force, but estimates are showing the PRS (Private Rented Sector) will need to be ready for the implementation of the changes from approximately Spring/Summer 2025 onwards. 

Transitional provisions

We know that the changes will apply to new tenancies as soon as the commencement date is announced and any current AST will automatically convert to an Assured Tenancy straight away.  An interesting transitional provision is that tenancies where a valid S21 or S8 notice has been served and possession proceedings commenced prior to the legislation becoming effective will remain an AST and are exempt from the new rules.

Notice periods

Currently the notification period for a tenants notice to quit is one month.  This will become two months post Bill.  However, the landlord can agree in writing to a shorter period and the tenants notice to quit can be withdrawn if the landlord agrees, also in writing.

A reminder around how to action a rent increase

The changes to procedures around rent increases state that the new rules will apply to assured tenancies and not social tenancies.  A reminder that rent increase provisions in any Tenancy Agreements will have no effect and any rent increase will only be able to take effect via the serving of a Section 13 notice with 2 months’ notice. To avoid the possibility of your tenant challenging any rent increase it’s worth remembering that the current market value should be carefully factored in, along with any undue hardship to the tenant that you are aware the rent increase may cause, as the Tribunal could likely favour your tenant in these circumstances.

Accepting rent in advance – can you?

The Bill will prohibit landlords from either inviting, encouraging and certainly accepting any pre-tenancy payments of rent before the TA is signed.  It is unknown how these breaches will be policed or enforced but there is strong advice to ensure that you adhere to these rulings to avoid fines of up to £5,000.00.  To summarise, between the tenancy agreement being signed and its beginning, landlords are unable to acquire no more than 1 months’ rent, so there should be no reference in any tenancy agreements to a requirement for rent to be paid in advance of an agreed due date.

What else is new for landlords?

Before marketing any property, private rental landlords will need to be signed up to the Landlord Redress Scheme (Ombudsman) and penalties are enforced for those that have not adhered to and joined the redress scheme.  Again, it is unclear how these will be policed but the failure to comply could see landlords receiving significant fines. 

Landlords will be required to register themselves and their properties on the Landlord Database

We have heard a lot about the Landlord Database too, and we would hope this will be a simple case of protocol, albeit with a financial implication, although there may be ways that the ELA will find to support this process to help you.  Although we know this will be compulsory, its hard to determine how it will be policed, but will certainly be in landlords best interest to register as soon as they are able as there will be restrictions on possession if you haven’t (except for ground 7A or 14). 

There is still further to uncover around the implementation of these requirements and we will keep you posted as we find out more.