Renters' Rights Bill: Abolishment of 'No Fault' Section 21 Notice
The Renters' Rights Bill will abolish the 'no fault' Section 21 notice, with new robust grounds for possession being introduced.
The Renters’ Rights Bill has already passed its second reading in parliament and, as promised in the Labour party's manifesto, will turn the Private Rented Sector on its head, heavily tilting the scales in favour of tenants after what Labour call "years of unfairness and uncertainty."
Abolishment of 'No Fault' Section 21 Notice
The Renters' Rights Bill will abolish the 'no fault' Section 21 notice, with new robust grounds for possession being introduced for landlords to ensure that they can still successfully obtain possession of their property.
However many of the existing grounds will have longer notice periods and, as currently, the burden of proving such grounds will be on the landlord in the County Court.
For example, should a landlord wish to sell their investment property, they must provide the tenant with the correct notice, in the prescribed form, and on the relevant ground, giving 4 months notice. The landlord will not be able to serve this notice on such a ground, in the first 12 months of the tenancy.
Other measures in the Renters’ Rights Bill
- All tenancies are to be rolling, periodic ones.
- Tenants can end a tenancy with two months’ notice.
- New provisions for landlords who wish to sell, move in or move family into the property. These provisions cannot be used during the first 12 months of a tenancy and 4 months’ notice is required.
- Three month’s rent arrears before the arrears grounds for possession can be used.
- No blanket bans on children or benefit claimants.
- Tenants will have the right to keep pets, although landlords can request appropriate insurance.
- All landlords will be required to register on a new national database.
- All rental properties are to reach the Decent Homes Standard.
- Strict timescales for health risks to be addressed will be introduced (Awaab’s Law).
- Local Authority enforcement powers to be strengthened and stricter penalties applied.
- Competitive bidding is to be outlawed when marketing properties.
- Rent rises to be restricted to a single annual increase, capped at market rates (or lower) and landlords must give two months’ notice.
- A new ombudsman is to be set up to resolve disputes and reduce reliance on the courts.
Renters' Rights Bill compliance consultation
If you are a good, pro-active and compliant Landlord, your property likely already meets the new criteria outlined in the Renters' Rights Bill, but it’s always best to ensure you’re fully aware of any changes or new obligations you are required to meet.
We are offering a free, no obligation Compliance Consultation to help ensure that you're fully compliant with the new requirements and aren't exposing yourself to any potential penalties. If we do identify any gaps in compliance, we will help you to put an action plan into place. To arrange yours, call us on 0161 511 5339 or complete our contact form.
