The landscape of the private rental sector in England is shifting. The oncoming wave of changes expected with the Renters' Rights Bill will impact landlords' operations. Being familiar with these new regulations will ensure landlords stay compliant with legislation.
These are the most significant changes landlords can expect.
Fines enforcing the Decent Homes Standard
Landlords will face a £7,000 fine if their properties fail to meet the Decent Homes Standard. This sets the minimum grades for the social housing sector across England and Northern Ireland.
The Government launched a consultation in 2022 to determine if it should be applied to the private rental sector. The white paper stating the outcome of the consultation, 'A Fairer Private Rented Sector', set out the Government's commitment to halving the number of non-decent rental homes by 2030.
Landlords could also be fined for 'overtly' discriminating against tenants who have children or who are on benefits. They will also face fines for encouraging competitive bidding for tenancies, so they can no longer accept bids above the advertised rent.
Need an update on the most significant changes for managing agents? Read our blog.
Right to request a pet
Tenants will have the right to request to keep a pet on their property. Landlords cannot 'unreasonably refuse' if the tenant can afford pet insurance. This has not been changed from the original Renters (Reform) Bill.
To do this, the tenant must send the request in writing to the landlord, who must respond within 28 days.
Property ombudsman
A new landlord ombudsman will be created to resolve tenancy disputes. All private landlords with assured or regulated tenancies will be legally bound to abide by decisions the ombudsman makes regarding arbitrations and redress.
This will create quicker and cheaper resolutions to disputes without the need to be escalated to court. Though the amount has not yet been confirmed, there will be a membership fee.
Health hazards
Landlords will have to investigate and fix health hazards within a specified time. This regulation, which was successfully applied to social housing in 2023, is being introduced to the private rental sector in England.
Following the conclusion of Awaab Ishak's inquest, a campaign was created for Awaab's Law, which focuses on damp and mould issues and explicitly dictates that landlords must fix these within strict time limits. It recommended the Government introduce legislation to require social landlords to investigate the causes of damp and mould within 14 days of complaints being made and provide residents with a report on the findings. It recommended the legislation should also give social landlords seven days to begin work to repair a property if a medical professional believes there is a risk to a resident's health.
A consultation was launched on this to determine how long a landlord should be given to deal with hazards, which closed on 5 March 2024. The resulting time limit has not yet been confirmed.
Tenants' ability to challenge rent increases
Tenants in the private rental sector will be empowered to challenge unreasonable rent increases. The Government says this will prevent "unscrupulous landlords" from using rent increases as a backdoor means of eviction while ensuring rents can be increased to reflect market rates.
Following this, all rent increases in this sector will be made using the same process. Landlords will be able to increase rents once per year to the market rate. This will involve serving a Section 13 notice, which will set out the new rent with at least two months' notice.
If a tenant then believes the proposed rent increase exceeds the market rate, they can challenge this at the First-tier Tribunal, which will determine the true market rent.
Final thoughts
While the Renters' Rights Bill marks a significant shift for the whole rental sector, it also imposes many new responsibilities on landlords' shoulders. A thorough understanding of the incoming legislation is crucial to avoid penalties and maintain positive relationships with tenants.
Arthur can help you stay on top of legislation's ever-evolving changes. Book a demo to learn how.
