Maximising your rental return and stay up to date, with our Renters' Rights Bill update
Posted February 11th 2025
As you may know, the Renters' Rights Bill is currently making its way through Parliament. Ben Stokes and Elizabeth Brookes, Lettings Directors of our sister companies Frost's and JNP, have prepared a brief update on key provisions of the bill, along with recent amendments introduced following discussions in the House of Commons.
Watch our bitesize videos which highlight the most significant points from these discussions.
1. Overview and grounds for possession
While Section 21 is being abolished, new grounds for eviction will be introduced, providing landlords with protection against non-compliant tenants.
2. Maximising your rental income
No rent caps are in place at present; however, tenants can challenge any rent increase in a first-tier tribunal. At a recent meeting, there was talk that the Lords are suggesting that a limit in line with CPI or RPI should be considered. It is, therefore, important that rents are increased as close to market value as possible in the next couple of months.
3. Changes to fix term contract
The government intends to phase out fixed-term tenancy agreements. We are continuing to engage with officials on this aspect, as fixed-term contracts offer tenants stability and landlords predictability, but at present, it appears all contracts will fall onto a periodic agreement.
4. Future marketing to achieve maximum value
New proposals suggest that landlords will no longer be able to accept offers above the advertised asking price for a property in the private rental sector; therefore, pricing is a key part of a marketing strategy.
5. Decent Homes Standards
The Decent Homes Standards set out minimum property conditions to ensure that homes are safe, warm, and functional for tenants. The DHS will set some standards as to timeframes landlords and agents need to adhere to in the event where there is mould or any major maintenance issue that are reported.
6. Ombudsman and landlord database
A new ombudsman will be created to handle complaints between landlords and tenants, ensuring that disputes are resolved fairly. All landlords and agents will be required to register with this service.
7. Pets in properties
Stricter rules are being introduced, meaning that landlords will no longer be able to refuse tenants with pets without a reasonable justification, such as head lease restrictions or unsuitable property conditions.
8. Rent in advance
A ban on rent more than one month in advance is currently proposed, which could make it more difficult for certain tenants (such as overseas students or those downsizing) to rent in the private sector.
9. Student rentals
The proposed maximum term for student rentals is set at six months, but this doesn’t align with the academic year. We’re continuing to engage with policymakers to find a more practical solution.
10. Have your say
As the bill progresses to the House of Lords, we will continue to monitor these changes and engage with policymakers to ensure that landlords’ interests are properly represented. We understand that these changes can be unnerving, but we are committed to providing updates and support throughout this process - we encourage our landlords to continue to engage with local MPs and the Lords to have your say.
If you have any questions or need more detailed information, please don’t hesitate to contact us.
