31st March 2025
This final blog explores the transition landlords will need to make (or at least think about making) to ensure compliance with the Renters Rights Bill (‘the Bill’). All existing fixed term tenancies will automatically convert to periodic assured tenancies upon commencement of the Bill. The Private Rented Sector Database (“the Database”) and the Landlord Redress Scheme (essentially an Ombudsman Scheme) (“the Scheme”) will require landlords to join for a fee. Landlords may also want to consider and plan for future improvement works to their rental properties, in view of changes to EPC requirements and to ensure compliance with the Decent Homes Standard and Awaab’s law (albeit the specific standards and requirements will take time to follow through in further planned legislation).
Tenancy agreements for the future
After the Bill is passed, all tenancies will become periodic rather than fixed. Therefore, tenancy agreements (or “Written Statement of Terms” as they are referred to in the Bill) may need modernising. Tenants can end their tenancy at any time by giving their landlord two months’ notice in writing. Landlords, however, can only seek to end the tenancy by serving a Section 8 Notice pleading one or more of the grounds provided.
As every tenancy will renew monthly, break clauses and rent review provisions will become void. To increase rent, landlords will need to serve a Section 13 Notice (following the current procedure) and give their tenant two months’ notice before the increase will take effect. This process can only be followed once in any 12-month period and landlords should be prepared that if a tenant challenges the new rent, any increase (if approved) may be delayed until such time as the First Tier Tribunal (Property Chamber) (“FTT”) considers the appropriate rent.
The Bill essentially proposes to give tenants an implied right to request permission to keep specific pet(s), which landlords may only refuse on reasonable grounds. Landlords may not be able to unreasonably refuse such a request, however they might seek to impose conditions such as requiring insurance against property damage and/or personal injury, regular vaccinations, hiring of dog-walkers or other similar requirements to prevent pets form becoming a nuisance to neighbours or other third parties.
Landlord Redress Scheme
This Bill will require landlords to join the Scheme. Failure to do so could lead to fines being imposed of up to £7,000 (and £40,000 where there are “continuing or repeat breaches”). The Scheme aims to resolve disputes between landlords and tenants quickly and fairly, with decisions being enforceable in the same way as a court order. Early resolution of tenant complaints is thought to be cheaper and likely to reduce recourse to legal proceedings. Via the Scheme it is intended that rogue landlords will be held accountable and may find themselves having to compensate their tenants. Those landlords could struggle to remain profitable and may be forced to leave the private rented sector, thereby increasing competition for good landlords.
Private Rented Sector Database
The Database aims to give tenants access to information about landlords, prior to entering a tenancy, so they can make informed decisions when choosing a rental property. Tenants can research landlords (and rental properties) by accessing relevant landlord information, prescribed information and whether any enforcement action has previously been taken. Landlords will need to provide a contact address, which could be their letting agent’s address, however, the government has committed to balancing privacy concerns with a tenant’s right to make informed decisions. A landlord that fails to register with the Database will only be able to seek possession of their property using the anti-social grounds (7A and 14).
Quality Homes for tenants
The Bill seeks to improve the quality of homes available for rent by introducing a Decent Homes Standard and incorporating aspects of Awaab’s law into the private rent sector, however this will be set out in further legislation. This is in addition to the government’s current plans to require landlords to improve the energy efficiency of their rented properties to at least a ‘C’ rating by 2030.
Awaab’s Law is intended to ensure tenants are not expected or required to live in dangerous conditions (such as mould and damp) and will demand landlords take swift action to remedy any identified issues, otherwise face penalties and adverse entries on the Database.
To ensure compliance with these standards, local authorities can investigate complaints and, where necessary, taken enforcement action.
If you require advice about recovering possession of your property, or how the proposed changes may affect you, then please contact our expert, Tracey Smith.
John Lloyd | Trainee Solicitor
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