A New Year begins with an update on the Renters' Rights Bill
The Renters' Rights Bill returned to the House of Commons on 14th January and has now moved to the House of Lords for further scrutiny.
Read our helpful update on the Renters' Rights Bill which outlines key points of reform, highlighting potential implications for tenants and landlords alike.
Key Inclusions and Impacts
1. Limiting Rent in Advance
- Change - Under the proposals, landlords will only be able to request one month's rent in advance and a security deposit of up to 5-6 weeks' rent.
- Implication - While reducing financial barriers for tenants, it might limit housing options for individuals who struggle with affordability checks but could previously demonstrate capability by paying rent upfront.
2. Evidence Grounds for Student Tenancies
- Change - Students can no longer be bound to tenancy agreements more than six months in advance.
- Implication - This adjustment conflicts with academic-year timelines where student accommodation is typically secured a year ahead. It may also discourage landlords from offering student tenancies, particularly for smaller properties (properties with no more than two bedrooms) not covered under specific possession grounds.
3. Landlord Fees Funding Ombudsman
- Change - Landlords will fund the private rented sector Ombudsman to handle disputes.
- Implication - Provides a formal resolution pathway for disputes, benefiting both tenants and landlords by promoting fairness. The funding for how this Ombudsman would operate had previously been unclear.
4. Guarantors and Tenant Deaths
- Change - Family member guarantors are exempt from financial liability if the tenant dies.
- Implication - A compassionate measure that protects grieving family members from undue financial stress when their loved one, who was also a tenant, passes away.
5. Private Rental Sector Database
- Change - A mandatory registration scheme for landlords, detailing property and enforcement records.
- Implication - Enhances transparency and accountability, though it could introduce administrative burdens for landlords. Here at Andrews Property Group, we are already working on a solution for our landlords with this.
Exclusions and Pending Details
- The decision to exclude Minimum EPC Standards from the current Bill leaves uncertainty about energy efficiency regulations, which will now fall under the remit of the Department for Energy Security and Net Zero.
Broader Considerations
Balancing tenant protections with landlord incentives is vital. Without addressing concerns about reduced rental stock and affordability, the Bill risks unintentionally narrowing housing options. Clarity on the final provisions, especially regarding energy efficiency and tenancy timelines, will be critical as the Bill progresses.
We will keep you informed of all updates as and when they happen our Group Letings Director Angharad has been attempting to get a meeting with several local MPs to discuss our concerns with the provision in the bill. Please do not hesitate to contact your local branch for any specific concerns about this upcoming legislation or concerns about your property
