Renters' Rights Bill: Tenancy reform

A new tenancy system is to be introduced, ending “fixed term” Assured Shorthold Tenancies.

The Renters' Rights Bill will introduce a new tenancy system, ending “fixed term” Assured Shorthold Tenancies, and moving to what the Government call a “transformative new tenancy system, providing tenants with greater protection and more flexibility."

The abolishment of a fixed term contract will mean that there is no clear “end” date of the tenancy, only that the tenants will enter into a “protected period” of 12 months from the start of the tenancy. This means landlords will not be able to serve notice on grounds such as wanting to sell or move back into the property, within the first 12 months of the agreement.

The new tenancy system will apply to all private tenancies - existing tenancies will convert to the new system, and any new tenancies signed will be governed by the new rules. Existing fixed terms will be converted to periodic tenancies, and landlords will no longer be able to serve section 21 or old-style section 8 notices to evict tenants.

Other measures in the Renters’ Rights Bill

• The “no fault” Section 21 notice will be abolished.
• 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

We are offering a free, no obligation Compliance Consultation to help landlords ensure that they're fully compliant with the new requirements and aren't exposed to any potential penalties. If we do identify any gaps in compliance, we will help landlords to put an action plan into place. To arrange yours, call us on 0161 511 5339 or complete our contact form.