What tenancy types will be affected by the Renters’ Rights Bill?

The Bill will affect all Assured Shorthold Tenancies also known as AST’s.  An AST is the most common type of tenancy if you rent to private individuals.

The Bill won’t affect company lets, premium leases and high rent tenancies where the rent is over £100,000 per year.

We understand AST’s will be abolished and are to be replaced by periodic tenancies. But want does this means to landlords?

The change means landlords and tenants will no longer agree fixed tenancy periods, all tenancies will be periodic tenancies and called ‘assured periodic tenancies’. 

This means tenancies will run from month to month until either the tenant service notice, or the landlord meets one of the possession ground conditions.

During the first 12 months of any new tenancy, landlords will not be allowed to move back home or attempt to sell their property. This means tenants will have a 12 month protected period.

Will the new legislation come into force for new and existing tenancies at the same time?

Implementation for new and existing tenancies will take place on the same day – the Government have not allowed for any phasing. 

The housing minister would like to see the Bill introduced in one step by the beginning of summer 2025. 

Once the Bill is finalised and passed there will be an adjustment period before the legislation is enforced to allow landlords and agents time to prepare for the new tenancy situation.

The Lettings Industry Council as well as others are challenging the lack of phasing for new and existing tenancies – they are asking that existing tenancies are phased in at a later date.

Under the new legislation how will a landlord regain possession?

The new legislation abolishes section 21 notices.

Landlords must use a section 8 notice instead, citing a specific ground for possession. Additional grounds will be introduced to allow landlords to serve notice when they need to either sell or they, or a close family member, want to move in to the property.

Yes, an annual rent increase can be proposed by landlords. They must do this by serving the tenant a section 13 notice. Any proposed increase must be in line with local market rents and evidence provided. 

If the tenant accepts the proposed increase they will start paying from the next rent due date after the anniversary.

If a tenant believes the rent increase is above market rate they can dispute the increase by applying to the First Tier Tribunal. They must do this before the start date of the proposed new rent.

The Bill will require landlords and agents to publish an asking rent for the property. They will not be allowed to encourage or accept bids above this price.

What happens if landlords or their agents breach the new legislation?

Noncompliance fines are being increased and Local Authority enforcement powers will be strengthened. The fines can be up to £7,000 for minor or initial non-compliance and up to £40,000 for repeat offences.

You are in expert hands. 

As our client you can be confident that we will be prepared for all the changes. 

On average our tenants stay in their rented property for at least two years, and the majority of notices are in fact served by tenants, not landlords. 

We see no reason why tenants will make any changes to how they currently rent, so the good news is, we don’t believe the new rules will reduce the length of time tenants like to stay in a property unless they are experiencing difficulties.