Suzanne Smith and Richard Jackson discuss their first impressions of Labour's new Renters' Rights Bill in this special episode of Good Landlording, shortly after Bill was published.
They go through the big ticket items in the new Bill, how it compares to the old Renters (Reform) Bill, and what landlords should do to prepare for the new Bill.
They'll be discussing the Renters' Rights Bill in more detail in the coming weeks and months, but this episode provides a useful overview of what's in the Bill, and what's not.
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What we cover in this episodeOverview of the Renters' Rights BillThe key parts of the Renters' Rights Bill1. The abolition of Section 212. The abolition of ASTs and fixed term tenancies3. Changes to Section 8 Grounds for Possession4. No rent controls in the Renters' Rights Bill5. Change to rent increase procedure6. No encouragement of rental bidding7. Other provisions in the Renters' Rights BillWhat should landlords do about the Renters' Rights Bill?
Overview of the Renters' Rights Bill
The Renters' Rights Bill is very similar to the old Renters Reform Bill, but with a fair few Labour "tweaks", notably removing the concessions given to Conservative backbench MPs at the Report Stage of that Bill, banning rental bidding, and giving tenants more rights when it comes to challenging rent increases.
There are no dramatic surprises as the main provisions have been well signalled by the Labour government. The amendments that Labour proposed at the Report Stage of the Renters (Reform) bill have been reflected in the new Bill.
>> Useful resource: Renters' Rights Bill Hub
>> Blog post: How the Renters' Rights Bill compares with the Renters (Reform) Bill
The key parts of the Renters' Rights Bill
1. The abolition of Section 21
The Renters' Rights Bill takes the same approach to the abolition of Section 21 no fault evictions as the Renters (Reform) Bill. However, there will be no delay to the implementation for existing tenancies for the Lord Chancellor's review of the operation of the County Court eviction process as there was with the Conservative's Bill.
Instead, there will be a "big bang day" when all tenancies will switch to the new regime, without Section 21, whether they are new or existing tenancies.
The abolition won't affect notices that are served before the Bill comes into force.
>> Blog post: How and when will Labour abolish Section 21 no fault evictions?
2. The abolition of ASTs and fixed term tenancies
As per the old Bill, assured shorthold tenancies will be replaced by periodic assured tenancies and landlords won't be able to sign up renters for a minimum period. Renters will be able to serve 2 months' notice to quit at any time.
Labour have done this to make tenants flexibility so that they're not tied in and can leave places that are in disrepair. It's part of their aim of giving more power to renters.
There is no exception for student landlords, and they won't be able to stop tenants moving out at Easter or after the exams in May.
3. Changes to Section 8 Grounds for Possession
Contrary to media reports over the summer, the Renters' Rights Bill does not introduce a hardship test for Mandatory Grounds, which would have effectively turned all Mandatory Grounds into Discretionary Grounds.
Landlords will be pleased that the new Bill contains the new Ground 1A from the Renters Reform Bill which entitles them to possession if they can demonstrate they wish to sell the property.
4. No rent controls in the Renters' Rights Bill
Despite recent speculation, there are no rent controls in the Bill and no provisions to devolve the power to impose rent controls to local government and the Metro Mayors.
5. Change to rent increase procedure
Landlords will only be able to increase the rent by using the Section 13 procedure, and the notice will be doubled from one month to two months.
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