Whilst there is no doubt that the introduction of the Renters Rights Bill is one of the biggest changes to the sector for quite some time, letting agents are being urged to embrace the changes and work together with their existing landlords, and new landlords, to contribute to improving the rental sector.
Paul Offley, compliance officer at The Guild of Property Professionals, has been reassuring members of the network to stay informed, and not to panic and to consider the new proposed legislation an opportunity rather than a threat to businesses.
The bill seeks to transform the experience of private renting, including by ending Section 21 evictions and improving the current system for both the 11 million private renters and 2.3 million landlords in England. It is claimed that the bill will give renters greater security and stability to avoid the risk of homelessness in England.
Offley said: “As a sector we can all agree that a reform is long overdue and welcomed. This bill is not in place to catch anyone out, particularly those landlords who are providing a good service, provide safe and decent homes and respond promptly to maintenance issues.
“I’m reminding our members to focus on the key points such as: the abolishment of Section 21 notices, the move to have all tenancies operating on a periodic basis, the introduction of Decent Homes Standards and Awaab’s Law to the private rented sector, the creation of a Private Rented Sector portal, the requirement for all landlords to join a new ombudsman scheme, the ban on rental bidding wars, the end of discrimination against families and benefit recipients, the right for tenants to request to keep a pet.
“Really importantly, this is not the end of landlords being able to gain possession of their homes as there will be the introduction of improved grounds that landlords can use. It is important that landlords are aware of what this means to them and that using a letting agent for full management will help to ensure they are not put at risk of breaching any new requirements.”
The government states that a functioning private rented sector will provide a secure stepping stone for aspiring homeowners and flexibility for those who want it.
Offley added: “Agents should take this time to ensure their teams are fully up to speed with the bill. Our Members are in a fortunate position to have compliance support and advice on hand – a valuable asset to the modern-day agent.”
He continued: “With the passing of the Renters’ Rights Bill now reaching ‘committee’ stage, in the House of Commons, where the bill is reviewed line by line, there are still two more stages before it completes the House of Commons part of the journey and then moves across to the House of Lords. This means there is still plenty of time for experts to offer their professional advice and concerns before anything becomes law in the spring.”
After robber reeves s**t show of a budget yesterday, who knows what the idiots in government will throw into the bill when it’s finalised!
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Landlords must drop their trousers and then touch their toes.
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Dream on ….. with the current budget anyone still in business having taken their medication & upped their therapy sessions how can anyone qualify this factor?
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“The bill seeks to transform the experience of private renting, including by …. improving the current system for [the]…. 2.3 million landlords in England. ” Oh, no it doesn’t. There is not a dot or comma in the Bill that will make matters better for landlords except the unwanted (but obvious) consequence that rents will increase because of the increase in risk and cost to landlords.
[T]here will be the introduction of improved grounds [for possession] that landlords can use. What improved grounds? Even if new grounds are added (and they won’t be an improvement on section 21) there are at least two serious problems. First, the massive backlog of court cases which will be made worse when section 8 cases (rather than s21) have to be dealt with. Having a new ground for eviction is of little comfort if you have to wait 18 months to get the property back.
Secondly, the legislation sets a new trap for landlords and agents. A mistake in protecting the tenancy deposit will scupper a s8 claim for rent arrears. Unlike at present, the tenant may owe £10,000 in rent but if the deposit was protected a day late, the landlord will be sent back to Go to start his claim again unless he has first returned the deposit to the tenant.
Landlords and agents also ought to be wary of trying to take EXACTLY the maximum five weeks’ deposit. If they accidentally round up, because the calculator shows only two decimal places, they may take a fraction of a penny too much deposit. Curtains! And a minimum penalty of one times the deposit. Round down to the nearest whole pound to avoid this.
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I am surprised that the Renters Reform Bill so different to the Labour designed Renting Homes (Wales) Act 2016. This has retained a form of S.21 but with the tenant given 6-months notice and the minimum term is now effectively 12-months. This gives tenants sufficient time to find a new home and over the past 30 years we have seldom needed to use a S.21 notice because Landlords want to keep good tenants in order to obtain a continuous income stream and less decorating costs. They were however a useful tool if the tenant was a pain in the —-, as they could be moved on without having to get a court order, which would make it very difficult for them to get a rental in the future due to the lodged CCJ. The RHWA has reduced supply slightly, which has pushed up rents, but its complexity has meant that we have many more fully managed lettings.
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