Landmark changes in renters' laws: understanding the impact of measures eliminating no-cause evictions on tenants
The Renters' Rights Bill, a contentious piece of legislation, is progressing through Parliament, bringing closer new protections for tenants in England's private rental sector.
Slated to prohibit no-fault evictions and rent hikes during a tenant's term, among other reforms, the bill stands to impact buy-to-let investors significantly.
Research suggests that two-thirds of UK landlords may depart the rental market or reduce their assets this year, due to 88% expressing no confidence in the future of the rental market.
While renter associations support the planned changes, landlords have expressed concern, particularly about the end of fixed-term tenancies. Some argue this could push rents higher and potentially lead to a shortage of properties.
Housing Minister Matthew Pennycook defended the bill, stating it would modernize the private rental sector, empowering renters by providing them with greater security, rights, and protections. However, landlords have stressed the need for time to adapt to the reforms.
The bill would additionally outlaw landlords from blocking tenants on benefits or with children and introduces fines for properties deemed substandard. Landlords would only be allowed to raise rents annually, following the market rate.
Rather than typical 12-month contracts, all new tenancies would automatically convert to a periodic tenancy. Tenants could still terminate the agreement with two months' notice, while landlords would require a legitimate reason for eviction.
Critics argue that the changes could hit student accommodation, especially as there will be more requirements for evicting tenants during the academic year. Landlords are exempt from the legislation in houses in multiple occupation (HMO) with three or more bedrooms.
Reforms to the rental sector, embraced by housing campaigners to provide greater security for tenants, have raised concerns among some landlords. There are fears that the new measures could lead to fewer properties available for rent and potentially rising rents.
More regulations and tenants’ increased ability to end contracts may result in some landlords choosing to exit the rental sector, leading to fewer properties for tenants to rent. Landlords and real estate bodies have expressed concerns about the potential impact on supply and competition within the rental market.
Lettings platform Goodlord warns that new eviction rules and a ban on bidding wars could, unintentionally, cause rent prices to rise as soon as the legislation comes into effect. There's also a risk of increased rental disputes leading to County Court Judgements for tenants with arrears or other issues.
In summary, the Renters' Rights Bill, introduced by the Labour government in England, aims to fundamentally reform the private rental sector with provisions designed to improve tenant protections and regulate landlord actions. The bill addresses no-fault evictions, rental bidding, rent increases, pet ownership, and rent repayment orders, among other issues. While renter associations welcome the changes, landlords have expressed concerns about the potential impact on supply and rent prices.
The Renters' Rights Bill, by addressing issues such as no-fault evictions and rent increases, aims to improve tenant protections and regulate landlord actions in England's private rental sector. However, landlords have expressed concerns that these reforms could potentially lead to fewer properties available for rent and rising rent prices.
The bill's provisions, including the ban on landlords blocking tenants on benefits or with children, could have an impact on the future supply of suitable housing for these groups in the general-news context. Meanwhile, education-and-self-development sectors, like student accommodations, may also face challenges due to the new regulations on evicting tenants during the academic year.
