A Clearer View

Lisa Simon, Partner and Head of Residential Division, offers a practical update on residential letting issues currently in the news.

The Renters Reform Bill

Background

The Renters Reform Bill, which aspires to create a fairer rental market for both tenants and landlords, is proposed legislation which has been promised since 2019 and received its second reading in Parliament this week.   

The proposed key changes are:

1. Section 21 of the Housing Act 1988 would be abolished with the intention of improving security for tenants. However in a slight U-turn at the second reading the Government have suggested that this will only happen once essential court reforms are implemented.
2. Revisions to Section 8 would provide new possession grounds for landlords needing to regain their property should they wish to sell it, move into it themselves or a close family member, or in the case of serious breaches of the tenancy agreement.
3. Fixed term tenancies would be abolished and replaced with new open-ended tenancies.
4. Rent review clauses would be restricted: rent can be increased annually and only in line with the market rent by serving a Section 13 Notice.
5. A property portal would be introduced to help landlords understand and comply with their new responsibilities. All landlords must register with the portal.
6. A Private Renters’ Ombudsman will be established to oversee disputes between tenants and landlords.
7. It will become illegal for landlords and agents to have blanket bans on renting to tenants in receipt of benefits or with children.
8. Tenants will have the right to request a pet in their property, although a landlord can insist that the tenant pays for insurance to cover any pet damage.

    

Impact

It is likely that the proposed legislation will continue to evolve as it moves to the next stage. Carter Jonas will keep clients updated on the Bill’s progress. 

EPCs: future requirements cancelled

On 20 September 2023, the Government announced that the proposed energy efficient targets for rental properties will not now go ahead.

Currently, the Minimum Energy Efficiency Standards (MEES), require that private rented property in England and Wales must have an EPC rating of E or above. These standards came into force on 1 April 2018 for new tenancies and on 1 April 2020 for existing tenancies and still apply.

Following a consultation in 2020, it was proposed that the minimum EPC rating be raised from E to C from April 2025 (for new tenancies) and from April 2028 (for existing tenancies). However, the Prime Minister has stated that these changes will not go ahead. 

The Fire Safety (England) Regulations 2022

The Fire Safety (England) Regulations 2022 came into force this year.  The regulations introduce new responsibilities under the Fire Safety Order, the fire safety legislation in England and Wales, and apply to all buildings in England which comprise of two or more domestic premises (including the residential parts of mixed-use buildings).  

The requirements differ depending on the height of the building: there are three categories:  a residential building 18m (or 7 storeys) and above in height, residential building between 11m and 17.9m in height and residential buildings with 2 or more domestic premises with common areas.  

Landlords should ensure that a ‘responsible person’, which may include a managing agent for the building, or block manager, has the correct fire safety procedures in place. However, where there is not a designated ‘responsible person’ Landlords should be aware that this responsibility may fall to them.  We would advise all Landlords who rent out flats or apartments to ensure that the requirements relevant to their building are in place and the regulations followed. 

Previous Clearer View >