As the UK property landscape continues to evolve, the Renters Rights Bill represents one of the most significant changes to the private rental sector in decades.
The Bill signals a shift towards more regulated and tenant-friendly lettings, and while many of the changes may seem restrictive at first glance, they also offer responsible landlords a clearer framework and could help professionalise the sector.
As letting agents, we understand the importance of keeping landlords who have properties in the East Riding of Yorkshire fully informed about legislative changes that will impact their investments and day-to-day operations.
What can landlords do now?
Before we go over the changes here is a quick summary of what you can do right now:
Review your current tenancy agreements and policies.
Begin preparing for Section 21 abolition by understanding Section 8.
Keep up-to-date with the bill’s passage through Parliament.
Below we go over the key elements of the bill and give some practical advice to help you get through these changes successfully.
1. Abolition of Section 21 "No-Fault" Evictions
What's changing
The most dramatic change, and the one most may have heard about, in the legislation is the complete removal of Section 21 evictions, this is the section which previously allowed landlords to regain possession of their property without providing a specific reason, commonly known as "no-fault" evictions.
What does this mean for Landlords?
End of fixed-term certainty: The ability to plan repossessions, sales and/or rent reviews will be lost as the standard tenancies change from fixed term to rolling
Evidence requirements: All possession claims will now require demonstrable proof of a valid ground
Potential delays: The court-based possession process may take longer than the previous Section 21 route
Documentation importance: Maintaining comprehensive records of all tenant interactions, property conditions, and financial transactions becomes even more critical
Practical steps you can take
Review all your current tenancy agreements and diarise when they convert to periodic tenancies
Develop robust systems for documenting tenant interactions, particularly any breaches of tenancy conditions
Consider working with legal specialists to ensure possession claims are properly structured when needed
Budget for potentially longer periods between deciding to regain possession and actually receiving it and consider Rent Protection Insurance to help with heavy periods of uncertainty
2. Strengthened Grounds for Possession
What's changing
To balance tenant protections and offset the loss of section 21, the bill includes significantly enhanced Section 8 grounds, creating new pathways for legitimate landlords to regain their properties when necessary.
For example, if you need to sell your property, move back in yourself, or need to address tenant anti-social behavior, the reforms include clearer and stronger grounds for these situations.
When you become familiar with these expanded options, you might find the new system offers you better protection for your legitimate needs.
What does this mean for Landlords?
These are the grounds to regain your property with an explantion of what may be required:
Property Sale Ground
Evidence requirements: You'll need to prove genuine intention to sell, potentially including marketing materials and correspondence with estate agents
Timing restrictions: You cannot use this ground within the first 12 months of a tenancy
Proof of ownership: Documentation showing you've owned the property for a certain period may be required
Anti-avoidance measures: Protections exist to prevent using this ground fraudulently
Landlord or Family Occupation Grounds
Residency requirements: You must prove intention to use the property as a primary residence
Family definition: Clear definitions of which family members qualify under this ground
Time restrictions: Similar to the sale ground, this cannot be used in the first 12 months
Previous occupation evidence: Priority may be given to landlords who previously lived in the property
Anti-social Behavior Grounds
Evidence threshold: Stronger provisions for dealing with anti-social behavior but with higher evidence requirements
Community impact: Documentation of effects on neighbors or community
Graduated approach: Multiple pathways depending on severity, from warnings to expedited possession
Witness statements: Potentially more involvement from neighbors or affected parties
Rent Arrears Grounds
New threshold: Clear definition of qualifying arrears (typically three months or more)
Pattern recognition: Repeated late payments can now constitute grounds even if not in consecutive months
Court discretion: Judges retain discretion in certain circumstances
Evidence requirements: Detailed financial records and communication history with tenants will be crucial
What you can do
Familiarize yourself with the specific requirements for each possession ground
Develop clear protocols for documenting evidence that might support future possession claims
Consider using specialist legal advice when preparing possession claims
Think about using Rent Protection Insurance that can help with rent arrears, repossessions and costly void periods
Implement robust tenant screening processes to reduce the likelihood of needing to seek possession
3. New Periodic Tenancy Structure
What's changing for Landlords
The bill will make all tenancies periodic, meaning they will roll on a monthly basis from day one, additionally tenants will be able to leave with two months’ notice at any time. Landlords must provide grounds if they wish to end the tenancy (see above).
Under the new system, all tenancies will automatically become periodic from the start and any existing tenancies will become periodic from the day the bill comes into effect. If you've traditionally used fixed-term contracts to provide certainty for your business planning, you'll need to adjust your approach to account for the greater flexibility tenants will have.
Detailed impact for Landlords
Perpetual tenancies: Unless a valid ground for possession exists, tenancies could continue indefinitely
Notice periods: Tenants can leave with two months' notice from the outset, creating potential void periods
Rental adjustments: There are restrictions on when and how rent can be increased under periodic tenancies
Management implications: Long-term tenants may require different management approaches
No fixed term tenancies: You will no longer be able to lock tenants into a 6- or 12-month term.
Practical steps to take
Develop a proactive maintenance plan that works with long-term occupancy
Build stronger relationships with tenants who may stay for extended periods
Create financial contingencies for potentially more frequent or unexpected void periods like Rent Protection Insurance
4. Rent Increase Limitations
What's changing
The bill introduces strict controls on rent increases, limiting them to once annually and requiring a minimum notice period. It also creates mechanisms for tenants to challenge what they consider unfair increases.
The reforms will also limit rent increases to once per year and ban arbitrary rent review clauses. However, if you plan your rental income strategy carefully, accounting for these new limitations, you can maintain a sustainable business model despite the additional restrictions.
The impact on Landlords
Annual restriction: You can only increase rent once every 12 months
Notice requirements: A minimum of two months' written notice must be provided
Challenge mechanism: Tenants can refer increases to the First-tier Tribunal if they believe they're excessive
Market evidence: You'll need to justify increases with reference to local market rates
Inflation considerations: Tribunals will likely consider inflationary pressures when assessing "fair" increases
Steps you can take
Develop a systematic approach to rent reviews that aligns with the new restrictions
Gather evidence of comparable local rents to support any increases
Consider using independent rental valuation services to strengthen your position
Maintain clear records of property improvements that might justify higher increases
Communicate transparently with tenants about the rationale behind any rent changes
5. Property Standards and Fitness for Human Habitation
What is the bill changing
The legislation significantly strengthens requirements regarding property conditions and expands the Decent Homes Standard to the private rental sector, with new enforcement mechanisms and tenant redress options.
Previously applicable only to social housing, this standard establishes minimum requirements for property conditions. If you ensure your properties meet these standards now, you'll avoid potential enforcement action later.
The impact on Landlords
Expanded standards: The Decent Homes Standard covers aspects including adequate heating, modern facilities, structural integrity, and energy efficiency
Decent Homes Standard criteria: Properties must:
Meet the statutory minimum standard for housing (free from hazards under HHSRS)
Be in a reasonable state of repair
Have reasonably modern facilities and services
Provide a reasonable degree of thermal comfort
Enforcement powers: Local authorities gain enhanced powers to enforce standards
Financial penalties: Increased maximum fines for non-compliance
Tenant remedies: New rights for tenants to seek redress for substandard conditions
Energy efficiency: Gradual increases in minimum EPC requirements (targeting C rating by 2028)
Electrical safety: Mandatory five-yearly electrical safety checks
Carbon monoxide detectors: Required in all rooms with combustion appliances
Practical steps to take
Commission thorough property condition surveys to identify any areas needing improvement
Develop a phased investment plan to address any deficiencies over time
Prioritize safety-related improvements to mitigate immediate risks
Consider energy efficiency improvements that may also reduce tenant utility costs
Maintain comprehensive records of all safety checks, certifications, and improvement works
Budget for regular professional inspections to ensure ongoing compliance
6. Tenants' Right to Keep Pets
What's changing
The bill introduces a new default position that tenants can keep pets, with landlords required to consider requests reasonably and unable to refuse without good reason.
What does this mean
Presumption in favour: The starting position is now that pets are allowed unless there's a legitimate reason to refuse
Reasonable objections: Valid grounds for refusal include property unsuitability, building restrictions, or specific animal concerns
Response timeframes: You must respond to pet requests within a set timeframe (typically 28 days)
Additional deposits: Limited ability to charge additional pet deposits
Insurance implications: Potential changes to insurance requirements or premiums
Property specifications: Some adaptations may be needed for pet-friendly properties
Steps to take
Review any existing blanket "no pets" policies and modify them to comply with the new approach
Develop clear and objective criteria for assessing pet requests
Consider pet-specific clauses in tenancy agreements covering damage responsibility
Explore pet-related insurance options to protect your investment
Document any legitimate reasons why specific properties might not be suitable for pets
7. Enhanced Enforcement and Redress
What is the Renters Right's Bill changing
The bill strengthens enforcement mechanisms and introduces new ways for tenants to seek redress, including enhanced roles for the Housing Ombudsman and easier access to the court system for certain claims.
The impact for Landlords
Mandatory redress: All landlords must register with the Housing Ombudsman scheme
Complaint escalation: Clear pathways for tenants to escalate unresolved issues
Local authority powers: Enhanced enforcement powers for councils, including civil penalties
Property portal: Introduction of a national database of rental properties with compliance information
Blacklisting protection: New offenses for landlords who discriminate against tenants receiving benefits
Retaliatory eviction: Strengthened protections against evictions in response to complaints
Steps you can take
Register with the appropriate redress scheme promptly
Develop a clear complaints procedure for tenants
Ensure all property compliance information is up to date and easily accessible
Train any staff or agents on the new requirements and tenant rights
Review your application process to ensure no discriminatory elements exist
Conclusion
The Renters Rights Bill represents a fundamental shift in the UK's approach to private renting. While there are undoubtedly challenges for landlords, those who approach these changes proactively will find opportunities to build more sustainable, long-term rental businesses.
Properties that meet the enhanced standards will command premium rents and attract higher-quality tenants. Landlords who embrace the new framework rather than resist it will be best positioned to thrive in this evolving market.
Free Consultation
Our team remains committed to supporting landlords through these changes. That’s why we’re offering a free one-to-one consultation to any landlords who have rental property in East Yorkshire to discuss your specific portfolio and give advice on how you can navigate the changes successfully.
For more information or to get some free advice on the Renters Rights Bill, please contact us on 01964 211 258
Maddie Lancaster is an ARLA qualified letting agent with over 10 years of experience in the UK rental market. Rent East Yorkshire specialises in property management services for landlords across the East Riding of Yorkshire.
Disclaimer: This information is provided for guidance only and does not constitute legal advice. Specific legal advice should be sought for particular circumstances.
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