Renters’ Rights Bill
The Renters’ Rights Bill has been designed by the Government to improve the private rented sector. At the time of writing, the Bill had passed through the House of Commons and had reached the second reading in the House of Lords. We’ll explore some of the key provisions of the bill, with a focus on the impact that it will have on both Landlords and Tenants in regards to the student market.
In England there are approximately 11 million private renters and 2.3 million landlords. The Renters’ Rights Bill intends to introduce a range of measures which will impact both landlords and tenants, including:
- Abolishment of section 21 ‘no fault’ evictions
- Ensuring possession grounds are fair to both parties
- Stronger protections against backdoor eviction (an illegal method of evicting tenants i.e., via utility shutoffs)
- Introduction of a Private Rented Sector Landlord Ombudsman
- Creation of a Private Rented Sector Database
- Strengthened tenants’ rights regarding pets
- Application of the Decent Homes Standard to the private rented sector
- Apply ‘Awaab’s Law’ to the private rented sector (a law which enforces landlords to take action on hazardous conditions, i.e., damp and mould, to ensure the safety of tenants)
- Discrimination against prospective tenants in receipt of benefits or with children will become illegal
- Ending the practice of rental bidding by prohibiting landlords and agents from asking for or accepting offers above the advertised rent
- Enhancing local authority enforcement by increasing civil penalties, granting new investigatory powers, and requiring local authorities to report enforcement activities.
- Strengthening rent payment orders by extending them to superior landlords, doubling the maximum penalty, and requiring repeat offenders to repay the maximum penalty.
During the second reading in the House of Lords, it was confirmed that a new possession ground will be introduced for landlords renting to students in Houses in Multiple Occupation (HMOs). This will allow landlords to regain possession of their properties ahead of each academic year, ensuring the continuity of short-term student tenancies.
Renters’ Rights Bill & Students
The government has announced that private, purpose-built student accommodation (PBSA) will be removed from the assured shorthold tenancy system. This change acknowledges the unique nature of the student rental market and the distinction between purpose-built developments and traditional private rentals. However, in return for this exemption, PBSA providers will be required to adhere to government-approved codes of practice to ensure that properties meet high safety and quality standards.
Turning to the private-rented student sector, the Bill proposes several changes that will have a significant impact upon this market, including:
- The abolition of fixed-term tenancies, meaning that student lets will change to rolling periodic tenancies where a 2 month notice will be required to end the tenancy
- The removal of Section 21 ‘no-fault’ evictions, requiring landlords to provide specific grounds to regain possession of their property.
- A new limitation on upfront rent payments will prevent landlords from requesting more than one month’s rent in advance.
At Vickery Holman, we recognise the importance of understanding the ongoing changes to the market and have extensive knowledge and experience of the residential investment market, including standard Assured Shorthold Tenancies (ASTs), professional HMOs, and student accommodation.
Our expertise enables us to provide advice, be it Valuation or Agency, that reflect the specific characteristics and regulations of these property types.
