Renters' Rights Bill Moves to Key Report Stage

The Renters’ Rights Bill is set to reach its report stage in mid-January, marking a major milestone on its path to becoming law. Starting 14th January, MPs will examine the legislation line by line.

Introduced in September 2024, key features of the new legislation will:

• Abolish Section 21 evictions and transition all assured shorthold fixed-term tenancies to periodic tenancies

• Prohibit rental bidding and ensure landlords and agents publish a fixed asking rent

• Create a Private Rented Sector Database for landlords

• Apply the Decent Homes Standard and introduce ‘Awaab’s Law' to address serious hazards

• Make it illegal to discriminate against tenants based on receiving benefits or having children

• Strengthen tenant rights to request pets

• Expand local authority enforcement powers and increase penalties for non-compliance, including rent repayment orders

Propertymark, the leading membership body for property agents said, ‘Given Labour’s prioritisation of this legislation, the report stage is expected to be expedited, potentially concluding within a single day.” They added, ‘Overall, there has generally been an agreement between all party MPs on most elements of the Bill.’

The Report Stage aims to:

• Refine and improve the bill based on previous discussions and scrutiny

• Address any unresolved concerns or issues identified earlier

• Ensure the bill is robust and fit for purpose before moving to the next stage

During the Bill’s second reading in October 2024, Deputy Prime Minister Angela Rayner said: ‘I am determined to get this Bill into law as soon as possible.’ There have been a number of proposed amendments since the first sitting and the government have agreed to 40 of those 95, all of which were minor and more technical points.

After the Report Stage, the Bill will proceed to a Third Reading where MPs will debate its final form without making further changes. If the Bill passes the Third Reading, it will move to the House of Lords before receiving Royal Assent to become law.

On a recent industry webinar, Rightmove’s Legal & Compliance Director, David Cox, also underlined the swift progress of the legislation which could come into force as early as July 2025.

We’re keeping our landlords and tenants informed of the changes throughout 2025. You can also stay updated by subscribing to our newsletter below. The government’s full guidance on the legislation is available here.

The New Renters' Rights Bill

The UK government's Renters' Rights Bill, introduced in September 2024, aims to enhance tenant protections and address longstanding issues in the private rented sector. Key provisions of the bill include:

• Abolition of Section 21 Evictions: The bill seeks to eliminate 'no-fault' evictions under Section 21, preventing landlords from terminating tenancies without a valid reason. This change is intended to provide tenants with greater security and stability in their homes.

• Regulation of Rent Increases: The legislation proposes limiting rent increases to once per year and requires that any proposed increase be in line with market rates. Tenants will continue to have the right to challenge unjustified rent hikes through a tribunal.

• Introduction of a Decent Homes Standard: The bill introduces a 'decent homes standard' for private rentals, ensuring properties meet minimum conditions regarding repair and maintenance. This measure aims to improve living conditions and hold landlords accountable for the quality of their properties.

• Ban on Discriminatory Practices: The legislation seeks to prevent discrimination against tenants based on their receipt of benefits or family status, ensuring fairer access to housing for all applicants.

• Pet Ownership Rights: Tenants will have the right to request permission to keep pets in their rental properties and landlords cannot unreasonably refuse such requests. This provision acknowledges the importance of pets to many renters and aims to make pet ownership more accessible.

• Establishment of a Landlords Ombudsman Service: To streamline dispute resolution, the bill proposes the creation of an ombudsman service, offering tenants a means to resolve issues without resorting to the court system.

Implications for Landlords…

Whilst the Renters' Rights Bill has been welcomed by tenant advocacy groups, some landlords have expressed concerns about the increased regulations and potential challenges in managing their properties. It's essential for landlords to familiarise themselves with the proposed changes and assess how they may impact their rental practices.

Naturally, as the bill progresses through Parliament, we expect amendments. It is essential that both tenants and landlords stay informed about the developments to understand how the new legislation will affect them.

…And what it really means:

• Abolition of Section 21 Evictions: Landlords will still be able to claim possession of their properties to sell or move in to.

• Regulation of Rent Increases: Rent increases are already permitted and restricted to once a year and will reflect market demand.

• Introduction of a Decent Homes Standard: Landlords already keeping a professionally managed and maintained property for tenants will be unaffected.

• Ban on Discriminatory Practices: Agents and landlords should not be discriminating against any demographic anyway and we continue to work with all tenants.

• Pet Ownership Rights: This is a new consideration and landlords cannot request higher deposits, it comes down to finding responsible tenants and managing the process.

• Establishment of a Landlords Ombudsman Service: As members of The Property Ombudsmen, Maplewood Property continue to follow their guidance. Landlords could be asked for a similar registration. This might alleviate landlord registration requirements with some councils and centralise the process.
  
  We’ll be keeping everyone up-to-date with the changes as the bill progresses into law in 2025. If you’d like to stay informed, you can subscribe to our newsletter.

Back to School, Back to Basics – Part 2

In Part 1 of Back to School, Back to Basics we covered the pre-tenancy certifications and legalities of rental properties. Now in Part 2, we’re moving forward in the process and once a tenant has been secured.

Other Things to Consider…

• Apart from a robust tenancy agreement applicable to the type of rental you have agreed and an inventory check-in report, copies of the EPC, EICR and GSC will need to be issued to any tenant before the tenant move in along with the government’s How to Rent Guide. If not, this may affect your ability to apply for an eviction order if necessary in future.

• Landlords are also required to protect a tenant’s security deposit in a government-approved scheme, such as the DPS and also check your tenant’s right to rent in the UK. Documents need to be checked in-person or online via the government’s verification service.

• If you would like the reassurance of a rent guarantee or legal protection cover policy in case your tenants don’t pay rent or need to be evicted, your tenant will need to have passed referencing with a third party referencing company.

•  If you’re normally resident overseas or the property is owned by an overseas company, you should always confirm your tax requirements with HMRC. They have specific guidelines for non-resident landlords.

Finally, international student tenants travelling to the UK for their course often have to rent properties on the basis of photos and video viewings without having actually stepped foot in the front door – or you having met them in-person. It can be worthwhile to have a video chat to assess their suitability for your property and also make sure that the tenancy agreement reflects that the property has been taken ‘sight unseen’ to avoid being let down at the last minute.

If you would prefer to use the services of a qualified and experienced agency, book a quick call with us to discuss your rental property. We’d be delighted to help.

Back to School, Back to Basics – Part 1

It’s September and that has meant back to school for not only millions of children across the UK, but all the ‘big kids’ too - the students who are back at university to take up their places on undergrad and postgraduate courses.

It’s the first year of a true ‘back to normal’ end-of-summer/start of the school year cycle since Covid and demand has been soaring. We’ve even let a few properties in the final stages of renovation such that they’ll be occupied from Day 1!

With so many new move-ins happening, it’s a great time to go back over the basics and ask: What exactly do you need to do in order to let your property?

Pre-Rental Certifications & Legalities Required On Move-In

It’s a given that you’ll have made sure your rental property is fit for habitation and is maintained in good condition, but do you have the correction certifications in place?

To let a rental property, you need to make sure you have at least valid energy performance, electrical installation and gas safety certifications in place:

• Energy Performance Certificate (EPC): These have been around for 15+ years since Home Information Packs and the regulations in 2007. You need one to market your property! Certificates remain valid for 10 years and the minimum rating is currently E. Many have been done and many have since expired! In any case, you can check for your EPC on the government’s register.

• Electrical Installation Condition Report (EICR): Valid for 5 years, these have been a legal requirement since April last year and are needed before a tenant moves into a rental property. Watch out, the initial inspection may uncover electrical faults that require further investigation or remedial works. Read more details here.

• Gas Safety Certification (GSC): Still in force and the longest standing certificate requirement – nearly 25 years for good reason. Conducted annually by a Gas Safe registered engineer (formerly CORGI), GSCs or CP12s are also a legal requirement if there is one or more gas appliance in the property.

You’ll also need to ensure smoke alarms & carbon monoxide detectors are in place and working and can read our recent post for more information on the recent changes to regulations.

If the rental property is a flat in a purpose-built building, there are additional fire safety regulations to consider and the most up-to-date information is always available on www.gov.uk.

You may also want to get a test for Legionnaires Disease and whilst PAT testing appliances isn’t legally required for private rentals, if a tenant is placed by a local housing association scheme, they may request this and both are good practice. 

Finally, always make sure to check if your rental property falls inside of a mandatory licensing area. These vary between boroughs in London, with differing costs and application processes.

Coming up next week - Back to Basics Part 2 with some other things to consider for tenants moving in… and if you would like to discuss any aspect of preparing your property for rental, book a quick call with us.

Smoke and Carbon Monoxide Alarms in Rental Properties

Fire Safety Regulation Updates

From 1st October 2022, the government’s newest round of fire safety legislation for rental properties comes into effect. With updates to the current laws having been in the works for some time, the updated regulations contain some subtle but significant changes for landlords with properties in the private rented sector.

The full legislation is available on the government’s website, though the guidance issued by the Department for Levelling Up, Housing and Communities covers the most common questions and situations.

The new regulations mean: 

• all landlords must ensure a carbon monoxide alarm is provided in any room used as living accommodation which contains a fixed combustion appliance (excluding gas cookers). 

• all landlords will be legally obligated to ensure smoke alarms and carbon monoxide alarms are repaired or replaced once they are informed and the alarms are found to be faulty. 

There is no transitional period after 1st October 2022 and any landlord found to be in breach could be fined up to £5,000.

If you have questions about what the new regulations mean for your rental property, feel free to book a quick call with us.