The Renters’ Rights Bill – Landlords need to get ready

By John Spence, Property Litigation Partner

The Renters’ Rights Bill is expected to come into force within a matter of months. The Bill will, amongst many other major reforms, abolish fixed term Assured Shorthold Tenancies and no-faults Section 21 evictions. Private residential landlords and their letting agents must be ready for the imminent changes.

The key takeaways from the Renters’ Rights Bill are as follows:

• All existing private Assured Shorthold Tenancies are to be converted automatically into rolling monthly Assured Periodic Tenancies, with fixed term tenancies abolished.
• ‘Section 21’ no-faults based two months’ eviction notices abolished. To recover possession, landlords will have to establish one or more of an expanded range of ‘Section 8’ statutory grounds for possession before commencing County Court action.
• One new ground of possession (requiring the giving of four months’ notice) is if a landlord intends to sell a freehold or leasehold property, but this ground cannot be used in the first 12 months of a new tenancy.
• The most commonly used existing Section 8 ground for possession for significant rent arrears can still be used but only if there are arrears of three months (for monthly rent), whereas previously only two months’ rent arrears was needed, and now four weeks’ notice will be required instead of the current two weeks’ notice.
• Landlords will be required to register with a new Private Rented Sector Landlord Ombudsman dispute resolution service. Failure to do so will put the landlord and his agent at risk of fines from £7,000 up to £40,000.
• All landlords will also be required to register with a private rented database failing which they will be barred from recovering possession of their property, and at risk of fines from £7,000 up to £40,000.
• Rent increases will only be permitted once a year and two months’ statutory notice required before any increase.

If you wish to discuss this further, please do not hesitate to contact John Spence by email: js@cooperburnett.com or tel: 01892 515022

This blog is not intended as legal advice that can be relied upon and CooperBurnett LLP does not accept any responsibility for the accuracy of its contents.

This blog was originally published in the Tunbridge Wells Business Magazine: https://twbusinessmagazine.com