Introduced to parliament in September 2024, the Renters’ Rights Bill intends to improve the current system for 11 million private renters and 2.3 million landlords in England.
If passed in parliament, the Bill is set to bring about changes that could alter how landlords manage their properties, interact with tenants and structure rental agreements. The proposed changes include the abolition of Section 21 evictions, removal of fixed-term tenancies and strengthening of rent repayment orders.
But how can you navigate the upcoming changes as a landlord? Keep reading to understand the Bill in more detail and how you can prepare for what lies ahead.
Removal of fixed-term tenancies
As a landlord, you may be concerned about the removal of fixed-term tenancies, which currently offer the reassurance of guaranteed rent for a set period of time, usually six to twelve months. This also allows tenants to know how much they’ll be paying over a certain time.
Under the bill, all tenancies will become periodic, giving renters the flexibility to move out of unsuitable or substandard properties. Without this guaranteed rent, you might be worried about increased tenant turnover and the associated costs of finding new tenants. But there are things you can do to reduce this risk.
Maintaining a well-managed and high-quality property will significantly reduce the risk of tenants leaving quickly. This includes high standards of maintenance, prompt responses to issues and transparent communication.
The flexibility of periodic tenancies also allows both you and your tenants to better respond to changing circumstances.
Abolition of Section 21 evictions
The Renters’ Rights Bill also proposes to abolish Section 21, commonly referred to as ‘no fault’ evictions. Currently, this allows landlords to regain possession of their property without needing to provide a specific reason.
The abolition of Section 21 will give tenants more security and opportunity to challenge rent increases. But as a landlord, you may worry it will make taking back possession of your property more difficult.
However, the grounds for obtaining possession are set to be strengthened with more clearly defined reasons for repossession under Section 8 of the Housing Act 1988. This section outlines specific circumstances where landlords can lawfully seek possession, such as when a tenant falls into rent arrears or when the landlord intends to sell the property or move into it themselves.
Although initially daunting, this should lead to a more manageable process, with fair and transparent expectations for your tenants. You should keep proper records and clear documentation of any planned property sales to safeguard your rights.
Strengthening rent repayment orders
Another significant aspect of the Renters’ Rights Bill is the strengthening of rent repayment orders, which are designed to hold landlords accountable for maintaining legal and habitable living conditions. If landlords fail to fulfil their obligations, tenants may be entitled to reclaim some of their rent through a rent repayment order.
This highlights the importance of staying compliant with regulations and maintaining your property to a suitable standard. Proactive measures such as regular inspections, speedy repairs and health and safety compliance are just a few ways of avoiding potential rent repayment claims.
While the Bill increases protection for tenants, it also reinforces the responsibilities of the landlord, creating a more balanced and accountable rental market.
Navigating the changes
Navigating these changes may feel overwhelming, but we believe that both responsible landlords and tenants will benefit in the long term, under a fairer and more transparent rental system. By focusing on maintaining good property standards and building positive relationships with your tenants, you can effectively navigate the new legislation.
At Follwells, we’re committed to helping our clients be the best landlords they can be. In our experience, the best landlords often end up with the best tenants. Call us on 01782 615530 for support letting your property the right way or find out more here.
