Renters' Rights Bill – Blog Two

In this second part of our series on the Renters' Rights Bill we explore the abolition of fixed-term tenancies and rules around rent increases. These changes offer greater stability for tenants while creating a clear and transparent process for landlords.

Abolition of Fixed-Term Tenancies

Under the new bill, fixed term tenancies will be abolished and replaced with periodic tenancies. This change allows tenants to remain in their rental property for as long as they wish, until they decide to end the tenancy by giving 2 months’ notice.

Once the bill is implement it is proposed that:

- all existing tenancies will convert to periodic tenancies automatically

- All new tenancies starting on or after the implement date will be periodic

- The Section 21 notice will also be abolished, removing the ability of landlords to terminate a tenancy without providing a reason.

This reform is designed to increase housing security for tenants who will retain more control of vacating a property. These changes have serious affects for landlords, who if do not keep themselves up to date with legislation, may find themselves in difficulties if the tenancy is not managed according to guidelines.

Rent Increases

The Renters' Rights Bill also sets out new guidelines of how landlords can increase rental prices to ensure the prices remain market-based.

The proposed rules are landlords will be able to raise prices to the same as what would be achieved if the property was advertised as new to let. A Section 13 Notice is required too as well as a notice period of over 2 months for any change in rental price to be properly conducted.

There is now a new process to be followed by the tenant if the new market rate is disputed. This is with a First-Tier Tribunal, a system which will also be revamped as part of the Renters' Right Bill too.

Changes to Backdated Rent Increases

The bill proposes to end the backdating of rental increases. The increased rent can be deferred by up to two months where an increase can be proven to cause financial hardship for a tenant.

Conclusion

The Renters' Rights Bill looks to further change all aspects of how landlords manage their rental properties and the framework in which changes in rental price and tenancy length are agreed and delivered. The Bill aims to provide more secure housing for tenants which some landlords may have previously exploited.

As these changes move forward it is evermore so important for landlords to fully understand their obligations and procedures in terms of tenants. Stay tuned for further updates on the Renters' Right Bill as we explore significant aspects.

If you need assistance in understanding and staying ahead of legal changes contact our Lettings Team today. Our team are there to advise, assist and manage all aspects of rental properties.