Despite it being the biggest shake up of the private rental sector since the Housing Act 1988, it’s a case of blissful ignorance for many tenants. The lack of awareness was uncovered by research consultancy, Pegasus Insight, who found just 32% of tenants were ‘fully aware’ or ‘mostly aware’ of the contents of the Renter's Rights Bill.
One in five renters are ‘somewhat aware’ of the Bill - which is entering into its final stages in the Houses of Parliament before becoming law – with 43% saying they fall somewhere between ‘slightly aware’ to ‘not aware at all’.
Not just English renters affected
Those outside England can be forgiven for thinking they have the right to plead ignorance but they should also be aware of the reforms. While it’s true most of the Bill’s contents only impact English tenants, there is one aspect that affects Welsh and Scottish renters too – and it’s a good place to start.
If you’re a tenant in England, Wales or Scotland who is in receipt of benefits, or if you have children, it will become illegal for landlords and letting agents to discriminate against you. This should create a more level rental playing field and create equal opportunities for all.
The rest of the Renters’ Rights Bill pertains to England but both Scotland and Wales are continually making changes to their own housing policies, so it is always worth checking for the latest legislation. In fact, The Housing (Scotland) Bill is also making its way through the Scottish Parliament.
Feel more secure in your home….
The flagship change in England will be the abolition of Section 21 eviction notices – also referred to as ‘no fault’ evictions. Instead of evicting with impunity, landlords will have to have a valid reason from a pre-set list to regain possession. This reform should allay tenants’ fears that they may be kicked out on a whim
…or leave when suits you
The Renters’ Rights Bill also acknowledges that the opposite can be true and that some tenants may need to leave a rental property unexpectedly. As such, fixed-term tenancies will automatically turn into rolling period tenancies as soon as that clause in the Bill is applied.
Tenants will then be able to give two months’ notice to leave the property. Whether that’s due to unforeseen circumstances or the property being in a poor state of repair, they won’t need to wait for a break clause or the end of their fixed term to move on.
Expect better living standards
Talking of repairs and habitable conditions, Renters’ Rights Bill will see the introduction of a Decent Homes Standard in the private rental sector. Already in existence in the social sector, all private rentals will have to meet a strict new standard. As well as faster and more thorough responses to damp and mould, it is expected outdated kitchens and bathrooms will need replacing.
A fairer approach to rents
Another aspect of the Bill pertains to rent charged and this edict can be divided into four areas. Landlords will be limited to increasing rents to just once a year in line with market rates. Then, if a tenant is unhappy with a proposed rent increase, they’ll have greater rights to make a challenge. To help, the first-tier tribunal will be reformed so tenants feel more confident in making a challenge.
Bidding wars between tenants, which forces rents up, will be prohibited. Instead, a landlord or letting will only be able to accept the advertised rent. Landlords will also be banned for requesting rent in advance that exceeds one month’s rent
More power to challenge
The dynamic between a tenant and their landlord will also change. The introduction of a new private rental sector database will give tenants the ability to look up a landlord and their properties. The details held will help renters make more informed decisions.
If, however, the tenant-relationship does sour, a new landlord ombudsman will be available to impartially adjudicate disputes, with the intention to find amicable resolutions without the need to go to court.
Pet peeve?
Finally, pets in lets will go ahead. Although a landlord ‘must consider and cannot unreasonably refuse’ a request to keep a domestic animal, the right to keep a pet will not be compulsory and there may be times when a landlord is justified in their refusal to accept a cat or a dog. A similar pet clause is also contained in The Housing (Scotland) Bill.
If you'd like to know how the Renters’ Rights Bill affects where you are currently living, please get in touch.
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