Thinking ahead with Carter Jonas: The Renters’ Rights Bill

The Renters’ Rights Bill has passed through the House of Commons and is being reviewed by the Public Bill Committee who will report to the House of Commons on 28 November. The Bill should be with the House of Lords after the Christmas Parliamentary recess and could become law as early as Spring 2025.

We at Carter Jonas are here to help you navigate the new Bill effectively. We are available to review your existing rental portfolios to ensure you are achieving current market rent and your property meets the health and safety standards. We are preparing new tenancy documentation to reflect the new legislation as well as reviewing our procedures and processes and ensuring our Lettings teams are fully trained and up to date. We will keep you fully informed as the Bill progresses to ensure a smooth implementation.

The date that the Renters’ Rights Bill comes in will be known as ‘the Commencement Date’ and the Government has confirmed that all AST tenancies will fall under the new legislation immediately so please be aware that the new legislation will affect any new or current Housing Act tenancies. It is important to be aware of the proposed legislation if you are agreeing new tenancies between now and the Commencement Date.

Please note the legislation for Non Housing Act tenancies, including Company tenancies, will remain unchanged.

Be renters rights ready: What the Renters’ Rights Bill means for you

Be up to date with the new tenancy legislation: all tenancies including existing ASTs are due to become a periodic tenancy, meaning that a tenancy will no longer run for a set period. A tenant will be able to end their tenancy with two months’ notice at any time in line with the end of a rent period. All rents will be paid monthly or every 28 days. Section 21 notices will no longer exist which will impact the way you are able to terminate a tenancy. Be prepared for the changes to mandatory and discretionary grounds, including length of notice time and there may be a protected period of 12 months before notice can be served for a Landlord (or family) moving into or selling a property.

It is important to note that any Section 21 notices served before the new Bill will remain in effect (subject to the six month shelf life of the notice).

Be Prepared: Evidencing Market Rent: Under the new Bill evidencing accurate pricing will be essential. Landlords will not be able to accept an offer over the advertised rent and rent increases can only occur once a year. Tenants will be able to contest any accepted rent or rental increase they believe to be unfair in the First-tier Tribunal. Carter Jonas will provide rental comparables when marketing a property and when reviewing rents and issuing Section 13 notices to Tenants.

Carter Jonas is happy to review your existing property or portfolio to ensure you are achieving current market rent.

Be Selective: the Importance of Referencing: whilst Landlords will not be able to turn down applicants with pets, children, applicants who receive benefits, or accept advance rental payments, referencing will be crucial in identifying suitable applicants to live in your property. Carter Jonas uses independent reference providers whose stringent checks ensure that we only recommend the most suitable Tenants to you. Take time to review the references and we would recommend that you consider taking out legal and rental protection as Tenant circumstances can change during the course of a tenancy.

Be Compliant: Compliance and Property Management: with the introduction of Awaab’s law and the Decent Home Standard, it is important to optimise your property and address any property management issues. A reactive and responsive approach will be vital as clear communication can often help resolve issues. All Landlords will have to join the new Landlord Ombudsman service and digital property portal and we will advise you on all new compliance.

Your Carter Jonas team is here to help. If you wish to discuss how the Renters’ Rights Bill might affect you and how to prepare for it, please contact us.