Understanding the Renters' Rights Bill: Landlord Q&A Webinar

Key Takeaways from the Webinar: Navigating the Upcoming Rental Reforms

The Renters' Rights Bill, which could take effect as soon as summer 2025, represents a significant shift in the private rental sector. Our expert panel explored how landlords can adapt to the changes, focusing on several important areas:

1. Eviction Changes: What to Expect

• Abolishment of Section 21: The bill eliminates "no-fault" evictions, meaning landlords must now rely on specific grounds under Section 8 to regain possession.
• New Eviction Procedures: Section 8 will require grounds for eviction, with notice periods increasing to four weeks, and a longer waiting period for rent arrears eviction (three months of unpaid rent).
• Advice for Landlords: Landlords are advised to act swiftly if they intend to use Section 21 while it is still in place, as changes are imminent.

2. Tenancy Agreement Changes

• End of Fixed-Term Contracts: All new tenancies will become assured periodic tenancies, giving tenants more flexibility to end the tenancy by serving notice.
• Implications for Renewals: Landlords must be prepared for continuous tenancies, where long-term agreements are replaced by rolling contracts.

3. Rent Increases and Affordability

• Annual Rent Increase Limit: Rent can only be raised once per year, in line with market rates and supported by comparable evidence.
• Dispute Mechanisms: Tenants can challenge rent increases through a tribunal, requiring landlords to provide justification for any adjustment.
• Potential Market Impact: With rent increases potentially becoming more systematic, landlords may start raising rents annually to reflect rising costs.

4. Pet Policies: New Rules for Landlords

• No Unreasonable Pet Refusals: Landlords will not be able to deny tenants with pets without a valid reason, such as lease restrictions or unsuitable property type.
• Pet Insurance Requirement: Landlords can require tenants to take out pet insurance to cover potential damage caused by pets.

5. Discrimination and Tenant Selection

• Fair Treatment for All Applicants: The legislation makes it illegal to reject tenants based on receipt of benefits or other discriminatory factors.
• Importance of Comprehensive Referencing: A robust referencing process, including affordability checks and guarantors, will be crucial to ensure tenant suitability without discrimination.

6. Practical Advice for Landlords

• Prepare Now: With the legislation expected to come into effect in 2025, landlords should start reviewing their current tenancy agreements and practices.
• Documentation and Evidence: Ensure all tenant communication and documentation are in order to protect against disputes.
• Consider Rent and Legal Protection: With increased risks and administrative requirements, landlords may benefit from rent and legal protection services.

Q&A Highlights

• The panel addressed numerous questions on issues like managing evictions, handling disputes, rent increase processes, and selecting tenants fairly under the new rules.
• For further legal advice, our guest solicitor, David Goddard, is available for follow-up consultations.

Please note, all of the information above is our interpretation of the Renters' Rights Bill which is subject to change until it is given Royal Assent.