Millions of tenants across England are set for new protections from unfair evictions and unfair increases in rent.
The changes come as part of the government’s landmark reforms under the Renters’ Rights Act.
They aim to shift the balance of power between landlords and tenants to make renting fairer, more affordable and to improve standards.
But there are warnings that the reforms could add to the burden of renting out a property, leading to landlords exiting the sector and ultimately pushing up rents due to decreased supply.
Ministers will outline how the reforms will be rolled out across the coming weeks, but here is what the government’s rental reforms mean for tenants.
The end of no-fault evictions
Previously, landlords could evict tenants without reason known as a ‘no-fault’ eviction by just serving a section 21 notice and giving a renter two months to leave.
This created uncertainty for tenants but the new laws will abolish section 21 evictions and landlords will need to give a valid reason through the courts for a tenant to vacate such as for unpaid rent or anti-social behaviour.
Sarah Elliott, chief executive of housing charity Shelter, said: “Once implemented, England’s 11 million renters will finally be unshackled from the gross injustice of no fault evictions that have made thousands homeless.”
More flexible tenancies
Tenants will also have more flexibility if they want or need to leave a property as tenancy contracts will no longer be for a fixed period.
Fixed tenancies will be replaced with rolling ones that renew each month and landlords will only be able to change the rent once a year.
Nye Jones, campaigns manager for Generation Rent, said: “This change gives renters much more flexibility, meaning you can leave the property anytime with two months’ notice, while still having the new eviction protections.”
Landlord regulation
The legislation aims to make landlords more professional and responsible.
A landlord database will be created so tenants can access information about who they are renting a property from.
There will also be a new Private Rented Sector Landlord Ombudsman who will consider tenant complaints about their landlords.
Local authorities will be given more powers to investigate the state of rental properties and poor landlords.
Councils will also be given more powers to issue rent repayment orders, which order landlords to repay rent where they have broken laws such as harassment or failing to follow an improvement order on a property.
Pet powers
A major change in the rental reforms gives tenants more rights to request a pet in their property.
Landlords must consider the request and cannot unreasonably refuse, according to the new law.
Owen Sharp, chief executive of Dogs Trust, said: “These new pet-friendly renters’ rights mean that the benefits of pet ownership are no longer exclusive to homeowners, something we have been campaigning on for many years.
“It is a game-changer for pet-loving tenants.”
Minimum home standards
The law aims to improve the standards of rental properties so tenants can live in better conditions.
Homes must meet health and safety regulations plus kitchens must be under 20 years old and bathrooms must be less than 30 years old.
Plus, under Awaab’s Law to the sector, landlords in the private rented sector must take action to make homes safe where they contain serious hazards.
No discrimination
Previously, landlords and lettings agents have been able to exclude certain types of tenants.
Property listings in the past may have said no benefit claimants or children.
But the new law makes it illegal for landlords and agents to discriminate against prospective tenants.
More power over rent rises
Tenants previously had little control over the rent they paid and the lack of supply and high levels of demand often meant prices could be high and rise well above inflation.
But tenants will get new protections that give some limits to how high rents can go.
Rental bidding wars will be banned, so landlords and agents will be required to publish an asking rent for their property and it will be illegal to accept offers made above this rate.
Once a property is rented, a landlord will only be able to raise the rent once a year and any above-market increases can be challenged through the new Ombudsman.
Will rents rise or fall?
The government and campaigners hope that the changes will make renting more affordable by limiting how far rents can increase by.
But landlords have already faced restrictions on mortgage relief and increased stamp duty costs in recent years so there are fears that the latest changes may lead some to sell up, which may mean tenants end up paying more as supply drops.
Landlords have called for at least six months to prepare for the changes.
Ben Beadle, chief executive of the National Residential Landlords Association (NRLA), said: “The government must also recognise the vital importance of a thriving private rented sector not only to meet tenant demand but to the national economy.
“It is essential that the government’s reforms do not worsen the supply crisis by discouraging long term investment in the homes to rent that so many rely on.”
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