The Renters (Reform) Act has passed into law, introducing some of the most significant changes the private rented sector has seen in years. It aims to improve security and fairness for tenants, while setting clear expectations for landlords.
As Alison explained in her recent video, for most landlords, this will be absolutely fine. If you’re doing things properly or have a good managing agent, there won’t be any issues. The real worry is for self-managing landlords, or those not as up to date with legislation. These landlords may fall foul of the law without even realising it.
If you’re unsure about how the new rules apply to your property, it’s always best to seek professional advice. Even a small mistake, like getting a notice period wrong or a misspelled name, can lead to costly and time-consuming problems later on.
So, what’s actually changing?
Here’s a breakdown of the key parts of the new legislation:
Section 21 Evictions Abolished
The days of ‘no-fault’ evictions are coming to an end. Landlords will now need to give a valid reason to end a tenancy. This could include wanting to sell the property, move in themselves, or if the tenant has broken the terms of the agreement. This gives tenants more security, while still allowing landlords to regain possession where appropriate.
All Tenancies to Become Periodic
Under the new law, all tenancies will become periodic by default. This means they will run on a rolling monthly basis rather than a fixed term. Tenants will be able to give two months’ notice if they wish to leave, and landlords can serve notice using the new legal grounds.
This offers flexibility for tenants and a clearer legal process for landlords.
Rent Increases – More Notice and No Bidding Wars
Rent can still be increased once per year, but landlords must now give two months’ notice rather than one. And for tenants who believe the increase is unfair, it can challenge it through a tribunal.
Also banned are rent bidding scenarios where prospective tenants offer above the asking price to secure a property. Properties must now be let at the advertised price, ensuring a level playing field.
Advance Rent Payments Capped
Landlords and agents can no longer ask for more than one month’s rent in advance. This also applies to tenants offering more to secure a property. The goal of this is to prevent situations where tenants are priced out by those who can pay more upfront.
New Landlord Ombudsman and Property Portal
All landlords in England will need to register with a new Private Rented Sector Ombudsman. This gives tenants a straightforward route to resolve disputes without going through the courts.
There is also a new digital Property Portal where landlords must register their properties. It is designed to improve transparency and help everyone stay on top of legal requirements.
Pets
Tenants will now have the right to ask for permission for a pet. Landlords will no longer be able to refuse tenants who want to keep pets unreasonably.
No Discrimination in Advertising or Letting
The Act bans discriminatory practices such as “No DSS” or “No Children” in property adverts. Landlords can still assess suitability and affordability, but must do so fairly and without excluding people based on their circumstances.
A Better Standard of Housing
The Decent Homes Standard will now apply to the private rented sector. This helps ensure that all tenants live in homes that are safe, warm and well maintained.
In addition, Awaab’s Law, named after the tragic death of two-year-old Awaab Ishak, sets out specific timeframes for dealing with serious health hazards such as damp and mould.
So, what happens next?
Whilst the act has now become law we are waiting for the publication of the commencement dates in which the above factors will come into force. The suggestion is that this may be next spring however some areas of the legislation may have a delayed introduction take so knowledge and preparation is key.
Alison adds:
This is the biggest change we have seen in the rental sector for a long time, but none of this should be alarming for landlords who are already doing things by the book. The key is to stay informed and compliant! The lettings world is changing, and if you’re self-managing or unsure about any of it, now is the time to get support from a professional managing agent.
Need Help Navigating the Changes?
At Rush Witt & Wilson, we work closely with our landlords to keep properties compliant and tenants happy. We stay up to date with every change in legislation and take the stress out of managing a rental property.
If you’d like to talk through what the new Act means for you, give our team a call on 01424 430011. We’re happy to help.
