The Renters’ Rights Bill: What does it mean for landlords?

The Renters’ Rights Bill is currently working its way through the process of parliamentary approval and is likely to be implemented in the coming months. The Bill is aiming to bring about widespread change to the private rental market, with a primary focus on enhancing tenant’s rights.

One of the key changes for landlords that will be implemented is the abolition of fixed terms tenancies. From the date that the Bill is approved and put into law, no new fixed term tenancies can be created, and all existing tenancies will become periodic assured tenancies. This means that any tenancy must be granted on a rolling basis and cannot be for a set term. As a result of this, any pre-agreed options to renew or break clauses will become invalid.

The end of fixed term tenancies combined with the proposed changes to the procedures to terminate a lease means that many existing agreements may need amendment to avoid clauses being deemed as invalid. From the date the Bill is introduced, it will no longer be possible for a landlord to remove a tenant from their property on a ‘no fault’ basis, so consideration will need to be given to any such clauses in existing agreements.

Another change for landlords to consider is the amendment to the rent increase procedures. Under the new rules, rent can only be increased by serving a notice proposing the new rent, so any pre-existing rent increase clauses cannot be relied on. Additionally, the notice period required to be given when proposing a new rent increase is being extended.

From the date that the Bill is introduced, renters will also be granted an implied right to request to keep a pet. As an implied right, this will be immediately granted to any existing rental agreement and will not require the tenant to alter the terms of the lease. However, landlords will be able to impose a condition requiring insurance for damage caused by pets, though this will need to be incorporated as part of the agreement.

The Bill will also introduce fines for landlords that are found not to be compliant with the new regulations, so now is a crucial time for landlords to review their existing tenancy agreements and update any template agreements to be compliant.

Our Commercial team would be happy to provide any assistance with reviewing and updating tenancy agreements. Get in touch on 01908 660966 or email info@franklins-sols.co.uk .

Disclaimer: The information provided on this blog is for general informational purposes only and is accurate as of the date of publication. It should not be construed as legal advice. Laws and regulations may change, and the content may not reflect the most current legal developments. We recommend consulting with a qualified solicitor for specific legal guidance tailored to your situation.