The Renters' Rights Bill is set to significantly impact managing agencies. The Labour Government has pledged to "transform the experience of private renting," which will influence the 11 million private renters in England.
There are a number of measures which will affect property managers specifically.
Section 21 notices will be abolished
Abolishing Section 21 evictions is considered one of the most significant changes. It will give renters more security in their homes and help avoid the risk of homelessness. Labour has committed to this, stating it will "take action where the previous government has failed."
New possession grounds will also be implemented so landlords can reclaim their properties when needed.
The government added, “new clear and expanded possession grounds will be introduced so landlords can reclaim their properties when they need to".
Previously, the Conservative Government had pledged to ban Section 21 only after the courts were reformed, but Labour has scrapped this measure.
Assured shorthold tenancies will be periodic
Currently, assured shorthold tenancies are typically used in the social sector and the private rented sector where a tenancy is expected to be for the short term. These are to be abolished so that all tenancies, no matter when they were granted, will be periodic. This means the payments will be rolling, and the rent period will be no more than a month.
Application of the Decent Homes Standard to the private rented sector
The Government will apply the Decent Homes Standard to the private rented sector to give renters "safer, better value homes and remove the blight of poor-quality homes in local communities".
Decent Homes Standard requirements can be set for private rented sector homes and provide local councils with effective and proportionate enforcement powers if the bill is granted as law. The Government said: “The Decent Homes Standard will help landlords by clarifying requirements and establishing a level playing field, backed up by consistent enforcement.”
End the practice of rental bidding
Rental bidding is commonplace in today's rental market, but if the Government has its way, it will not be much longer. Ending the practice of agents and landlords from asking for or accepting offers above the advertised rent will mean the practice of pitting renters against each other will also cease.
The Government has outlined that managing agents will be required to publish an asking rent for their property, and it will be illegal to accept offers made above this rate. In turn, this will improve the experiences of prospective tenants across England and ensure that the exploitative approach currently taken by a minority of unscrupulous landlords is ended for good.
It will be illegal to discriminate against people with children or those in receipt of benefits
When deciding to grant a tenancy of a private residential property, it will be illegal to discriminate against people with children or those in receipt of benefits. This means no family will be denied a home when they need it.
Final thoughts
The Renters' Rights Bill represents a significant step forward in protecting the rights of private renters in England. These reforms have the potential to significantly impact the practices of managing agents and landlords. By addressing long-standing issues in the private rental sector, the Renters' Rights Bill could lead to a more equitable and sustainable housing market.
