Thinking ahead with Carter Jonas: The Renters’ Rights Bill

What's next for the Renters' Rights Bill?

The Renters’ Rights Bill will have a third reading after the Christmas Parliamentary recess, and will then proceed to the House of Lords, meaning it could become law by early Summer 2025.

Once the Bill receives Royal Assent the government will announce the ‘Commencement Date’. This is the date from which all Assured Shorthold tenancies in existence or to be entered into from that date will immediately become Assured Tenancies. Assured Shorthold Tenancies will become a thing of the past, save those where a section 21 notice has already been served or is being used in Court proceedings at that time. It is important to be aware of the proposed legislation if you are agreeing new or renewing tenancies between now and the Commencement Date.

How we can help

We are here to help you navigate the new Bill effectively and can, on request, review your portfolio to ensure you are achieving current market rent.

We are preparing new tenancy documentation to reflect the new legislation as well as reviewing our procedures and processes and ensuring our Lettings teams are fully trained and up to date.

Please note the legislation for Non-Housing Act tenancies, including Company tenancies, will remain unchanged.

What the Renters’ Rights Bill means for you

Be up to date

The new tenancy legislation:

All Housing Act tenancies, including existing ASTs, will become periodic tenancies, meaning that a tenancy will no longer run for a set period. A tenant will be able to end their tenancy with two months’ notice at any time, in line with the end of a rent period.

All rents will be paid monthly, or every 28 days or less, and the government has suggested that advanced rental payments may be prohibited, and any advanced payments which have already been paid may have to be refunded. Whilst this hasn’t been confirmed yet, we would recommend adjusting the rental payment terms to monthly where appropriate to avoid any potential repayment.

Section 21 notices will no longer exist which will impact the way you are able to terminate a tenancy. In future you will need to rely on mandatory and discretionary grounds which have been strengthened in addition to increased notice periods. There may be a 12-month protected period for a new tenancy during which a Landlord cannot serve notice to move back in, move family members in or sell the property, and there may be restrictions regarding the future re-letting of the property if either of these Grounds 1 and 1a (sale of a Property) are used to gain possession. With the incoming changes to possession, including lengthier notice periods to rely on the Grounds for rent arrears, it may be prudent to consider legal and rental protection insurance with a reputable insurer.

It is important to note that any Section 21 notices served before the new Bill will remain in effect, but possibly only for a period after the Commencement Date set by the government and not the current full shelf-life of that notice.

Be prepared

Evidencing market rent: 

Under the new Bill evidencing accurate pricing of the rent level will be essential. Landlords will not be able to accept an offer over the advertised rent and rent increases can only occur once a year. Tenants will be able to contest any accepted rent or rental increase they believe to be unfair in the First-tier Tribunal. Carter Jonas will provide rental comparables when marketing a property, and when reviewing rents and issuing Section 13 notices to Tenants.

Be selective

Importance of referencing:

Landlords will not be able to unreasonably refuse applicants with pets, decline applicants who receive benefits, refuse applicants with children or potentially accept advance rental payments. Consequently, referencing will be crucial in identifying suitable applicants to live in the property. Carter Jonas uses independent reference providers whose stringent checks ensure that we only recommend the most suitable Tenants to you. Take time to review the references and we would recommend that you consider taking out legal and rental protection as Tenant circumstances can change during a tenancy.

Be compliant

Compliance and property management:

With the expected introduction of Awaab’s law and the Decent Home Standard, it is important to optimise your property and address any property management issues. A reactive and responsive approach can often help resolve issues and the Carter Jonas property management team can navigate this for you. All Landlords will have to join the new Landlord Ombudsman service and provide accurate information for the new digital property portal when both measures are introduced, and we will advise you on any new compliance.

Your Carter Jonas team is here to help you navigate this period of change and we can also arrange an up-to-date Sales or Lettings valuation if you would like one.

If you have a mortgage at the property, you may like to consider a review as the market has changed considerably over the past twelve months. If you would like us to arrange this, we can refer you to Private Finance who provide this service to our clients.