When the Renters’ Rights Bill becomes law, how do landlords need to comply?

The Renters’ Rights Bill, (previously know as The Renters Reform Bill) was started by the last Conservative Government and is now all set for its third reading in the House of Lords on July 1. After passing through its reading in the Lords, the Bill will return to the House of Commons as per custom. While it is not uncommon for both houses of Parliament to bat a bill to and fro when in disagreement, this Bill is relatively non-controversial and expected to proceed for Royal Assent and become law before the Commons break for summer recess on July 22.

When significant changes are introduced into the private rental sector it can be difficult for landlords with properties in London and the UK to keep up with what the requirements are and how they need to comply. While – these latest reforms aim to provide better protection and a good standard of accommodation for renters, Benham and Reeves landlords can be reassured that we are here to help our investor clients and landlords embrace the new legislation which will likely come with a six to twelve month easing in period.

Here, we provide a breakdown of the main reforms that will be coming with the Renters’ Rights Bill and how Benham and Reeves will help landlords who retain us as their London property management agent can navigate the reforms.

Meeting new housing standards

Landlords will have to ensure their property meets a new Decent Homes Standard. We view this new Standard as good news as tenants are paying rent and therefore are entitled to good quality accommodation and this Standard should raise the quality of rental properties for tenants in the UK.

Q. How will Benham and Reeves help?

A. Benham and Reeves’ experienced Compliance Department will keep landlords up-to-date on housing standards and your Property Manager will ensure that your property meets all regulatory requirements without any hassle.

Rent restrictions

Rent increases will be limited to once per year and they must reflect the current market rate. Unscrupulous landlords will not be able to double rents for no reason!

Q. How will Benham and Reeves help?

A. Benham and Reeves’ Letting Managers are experienced and offer a structured rent review process. With 21 branches spread throughout London, our teams are both fully trained but importantly local experts enabling us to provide real local market evidence to justify rent increases and handle all the necessary paperwork, including issuing notices to tenants, where required.

End to “Fixed-Term” tenancies

Tenancy agreements will no longer be fixed after the initial 6 months and will become -periodic, meaning tenants will be able to terminate their rental agreement at any time by providing two months’ notice.

At Benham and Reeves, we usually gave tenants 2-month notice break clauses anyway as tenants are by their nature transient and may move for work, so this change is not a big change for our landlords.

However, Landlords will not be able to end tenancies without just cause such as wanting to sell or move back into the property to live there (see below point 5 which gives more detail) and therefore as tenants will be able to stay as long as they want, landlords must be extremely careful with which tenant they accept and choose reliable tenants.

Q. How will Benham and Reeves help?

A. Benham and Reeves’ stringent tenant referencing system ensures any tenant we introduce are fully checked out – equally important is that as a large proportion of our tenants come from overseas, we know they will generally stay 2-3 years.

Ban On bidding wars

Landlords will no longer be allowed to accept offers above the asking price. This regulation is aimed at preventing unfair competition among tenants.

Q. How will Benham and Reeves help?

A. Our team’s local market knowledge ensures landlords receive accurate rental valuations from the outset, avoiding bidding wars while securing the right tenants.

Section 21 evictions scrapped

Landlords will not be able to evict tenants without a valid reason.

The grounds for eviction will include

– Rent arrears
– Anti-social behaviour
– If the landlord needs to sell the property
– If the landlord wants to move back in to the property and self-occupy

Q. How will Benham and Reeves help?

A. Benham and Reeves’ experienced team will assist landlords with following the Law to evict the tenant, ensuring the process is handled professionally, effectively and within the Law. We will be on hand to guide landlords through any challenging situations.

Property portal

Landlords will need to register their property on a new digital property portal. This system will help track that every property is fully compliant with all regulations.

Q. How will Benham and Reeves help?

A. Benham & Reeves will help landlords register on the portal by providing landlords with full guidance including ensuring your property is compliant.

Pets

Tenants can insist on permission to keep pets in their rental property. Landlords will only be able to reject such a request if it is against the terms of the Head Lease or have a valid reason to, such as they will be moving back in afterwards and have asthma and are highly allergic – proof will be required to reject.

Q. How will Benham and Reeves help?

A. Benham and Reeves are already very experienced in dealing with tenants with pets – we manage many tenancies where the tenants have a pet and through management inspections are able to ensure tenants comply with the terms of their tenancy and do not allow damage. In addition comprehensive pet Damage Cover is available will help landlords register on the portal by providing landlords with full guidance including ensuring your property is compliant.

Keeping London landlords one step ahead

We support the new reforms as they are aimed at improving standards in the UK housing market and while many landlords may be concerned, we are here to give clarity and guidance to ensure our landlords do not have to worry.

By engaging with Government and being part of several tenant and landlord groups, we are able to closely monitor the Renters’ Rights Bill to ensure our landlords need not be concerned.

Our team in our 21 branches in London are happy to provide expert advice to ensure our landlords remain compliant while continuing to maximise their income and the value of their property.

For more details on the Renters’ Rights Bill, read our recent blog – “Navigating the Renters’ Reform Bill,” or contact us at info@benhams.com.