While the Renters' Reform Bill is still in its early stages, it is likely to come into force within the next year, and understandably, private landlords are keen to understand the impact of any changes and how they can protect themselves against any negative consequences.
What are the key changes for landlords?
- The abolition of fixed term tenancies.
- The abolition of 'no fault' (Section 21) evictions.
- The introduction of new grounds for
possession: key amongst the new/amended grounds are:
- Ground 1 – the landlord or a close family member (If a landlord uses this ground, they cannot advertise or let the property for the next three months).
- Ground 1A– The landlord intends to sell the property (this cannot be within six months of the start of the tenancy).
- Ground 6 (amended) – The landlord intends to redevelop the property (this cannot be within six months of the start of the tenancy).
- Ground 8A – At least two months' rent is unpaid for at least one day on at least three separate occasions in a period of three years.
- The ban on rent review clauses: Landlords will no longer be able to include rent review clauses in their tenancy agreements, meaning that they will not be able to increase the rent more than once a year.
- The changes in notice period for tenants: Notices to quit served by tenants must give a period of at least two months (or less if an agreement is reached with the landlord).
- The requirement to allow pets: Landlords will have to give permission for tenants to keep pets unless they have a reasonable reason for refusing.
To prepare for the changes, we recommend that all landlords review their ASTs and where vacant possession or a change of tenant may be sought in the near future, take advice on how and when this is achieved.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.