Landlords face tougher rules on renters

Jacob Grattage, Reporter, Business & Accountancy Daily - Croner-i

Tenants get new protections under Renters’ Rights Act with abolition of section 21 ‘no fault’ evictions and replacement of fixed term tenancies with periodic terms, with renters able to stay in a home until they decide to end the tenancy.

The government’s Renters’ Rights Act was given Royal Assent on 27 October, introducing sweeping changes that will affect millions of tenants and landlords.

Reforms to the private rented sector include the end of section 21 ‘no fault’ evictions.

The government said this shift will ‘empower tenants to challenge poor conditions and unreasonable rent increases without fear of retaliatory eviction’.

The reforms will give renters the right to end tenancies with two months’ notice, while protecting landlord interests with strengthened grounds for repossession.

In the coming weeks, ministers will outline the timetable for the rollout.

Next spring will see more measures to protect tenants including an end to bidding wars and measures stop landlords from demanding more than one month’s rent upfront.

Tenants will also be able to challenge unfair rent increases and ask to keep a pet, something landlords will not be able to refuse without a good reason.

Ben Beadle, chief executive of the National Residential Landlords Association (NRLA), said: ‘This is the most significant shake-up of the rental market in almost 40 years, and it is imperative that the new systems work for both tenants and responsible landlords.

‘The government now needs to engage meaningfully with those providing the homes so desperately needed, to ensure implementation of the Act is realistic and aligns with the practicalities of the market, not least the need for clarity well in advance of the next academic year for student housing.’

The government said the plan is to extend the measures in the Act to tackle discrimination, ban landlords and agents from refusing tenants because they have children or receive benefits, strengthen local authority enforcement and bring the Decent Homes Standard and Awaab’s Law into the private rented sector for the first time.  

Housing minister, Steve Reed said: ‘Our historic Act marks the biggest leap forward in renters’ rights in a generation. We are finally ending the injustice overseen by previous governments that has left millions living in fear of losing their homes.  

‘For decades, the scales have been tipped against tenants. Now, we’re levelling the playing field between renters and landlords.’

The new legislation will put more costs on landlords already facing rising tax bills and potentially an annual tax on all property owners which the chancellor is currently considering as part of her tax raising, cost cutting Budget.