Earlier this month, Labour introduced the Renters Rights Bill to Parliament. To allay landlords’ worries on what might change, Propertymark has put the rumours to rest.
Previously known as the Renters Reform Bill under the Conservative government, Labour has made a few changes to the new Renters Rights Bill before resubmitting it to Parliament. It will now move through the usual pathways before being made into law, meaning some aspects of the bill may still change.
At the moment, it is widely expected to come into force no later than October next year, but there is a chance it could move more quickly than this and be enacted by next summer.
It contains some potentially big changes for both the social and the private rented sector, but there is also some misinformation on what the Renters Rights Bill is actually proposing. In essence, the focus of the bill is on improving standards and rights for tenants, with some of the legislation aimed at rooting out poor landlords and homes.
Within the private rented sector, there is plenty of support for many of the proposals contained in the bill. However, there are also concerns on the timing and implementation of some of the changes, with the government urged to make the sector more, rather than less, enticing to landlords in order to ensure tenants aren’t left with an even greater shortage of homes.
Renters Rights Bill – the truth for landlords
As mentioned above, with several steps left before the Renters Rights Bill is passed as law, aspects of it may still change between now and then.
But in a bid to prevent the spread of misinformation on the subject, landlord body Propertymark has looked more deeply into five aspects of the bill in order to debunk some of the myths that have been circulating.
- Tenants and pets: This is an emotive issue for many tenants, while landlords have become concerned that they will be forced to allow their tenants to have pets if they want them. However, while it may become easier for tenants to request to keep pets, landlords will still be able to say no if they have a valid case for doing so – and it seems this will largely be discretionary. Propertymark adds: “A superior landlord can prohibit pets, in which case the tenant can take the matter to the private rented sector ombudsman to receive a final decision.”
- No-fault evictions: This is one of the biggest areas of concern for many landlords, who worry that evicting tenants will become more difficult once the Renters Rights Bill has come into force. However, Propertymark notes that the bill clearly outlines the fact that Section 8 evictions will be strengthened, “which will allow landlords to recover a property if they have a legal reason for doing so”. What’s more, the industry body debunks the myth that ‘no-fault’ evictions are already banned – for now, landlords can still use this process to out tenants.
- Rent rises: The Bill will not stop landlords from increasing their rent, says Propertymark, despite rumours to the contrary. Instead, it aims to ensure they are “fair and justified”. Landlords will be allowed to increase rents once a year to match market rates – but tenants will be able to challenge any rent rises at the First-tier Tribunal, which will decide whether the amount suggested is acceptable. This won’t affect the majority of landlords, who already only increase rents annually and based on the market average.
- Damp and mould: In inadequate and poor-quality rental homes, damp and mould is a serious issue, and the same goes for social housing. The Renters Rights Bill will strengthen tenants’ rights to live in decent housing. However, Propertymark debunks the myth that letting agents and landlords do not do anything about damp and mould issues – in fact, it is something responsible agents and landlords do take action on, with cooperation with the tenants.
- Discrimination: The new bill will take additional steps to remove discrimination within the private rented sector, making it illegal to blanket ban certain groups of people, such as those on benefits. But Propertymark notes that landlords will still have the final say over who rents their property, and it is already the case that reputable agents “follow inclusive practices and work with their clients to ensure property and tenancy arrangements are suitable for both tenants and landlords”.
As the Renters Rights Bill progresses through Parliament, we will keep you updated on any new developments that could affect property investors, landlords or tenants. Head to our Property News page to keep up to date with the latest issues affecting the market.
