On the 11th September 2024, the government announced their proposals to reform the private rented sector through the Renters Rights Bill, with the second reading of the Bill having taken place last month. Most of the changes have been discussed for many years and are similar to those previously proposed by the last government under the Renters Reform Bill. As is always the case, the media hype has added a significant negative spin and created some real fear and doubt in the minds of both landlords and tenants. There is no need for panic as the changes will still provide for a very healthy private rental sector and once any bill has passed, years of uncertainty will diminish and provide greater clarity for renters, landlords and letting agents.
However, working through the changes will require expert help and advice and that is what Curchods Lettings experts will be providing for both landlords and tenants.
A summary of the key proposals are outlined below:
- End of fixed term tenancies with all tenancies becoming a rolling periodic agreement
- Section 21 notices, fixed term tenancies and AST will be abolished
- Tenants will be required to give two months’ notice to end the tenancy
- Landlords will still be able to give notice should they wish to sell or move back into the property (this includes moving in close relatives). The notice period will be four months but the notice cannot expire within the first 12 months of a new tenancy.
- Landlords will not be able to discriminate against tenants with children, being on benefits (DSS) or those with Pets (although Landlords will be able to request tenants to have Pet insurance to safeguard against damage)
- Landlords will still be able to increase the rent once per year to market rate by serving two months’ notice
- Landlord will still be able to serve should the tenant fall into rent arrears (4 weeks’ notice if the tenant is three months in arrears)
- Rental bidding wars will be banned meaning Landlords cannot encourage or seek offer above the asking rent (which must be published)
- Landlords will be required to join a Landlord Ombudsman and a PRS Landlord database before a property is marketed
- The Decent homes standard will be extended into to the private rented sector and will also apply Awwab’s law which sets out the clear legal expectations on Landlords where a property contains a serious health hazard
When will any changes come into force?
These proposals are currently being debated in Parliament and there are likely to be amendments made before any proposed legislation becomes law. Labour have outlined their intention to have new legislation in place by Summer 2025 although the exact time frame is unclear.
What do Landlords need to do at the moment?
There is no action needed at this time. Most of this reform has been in the pipeline for a number of years and Curchods, alongside our legal partners, are well-prepared for these changes.
How can we support you?
At Curchods, we are known for sourcing high calibre tenants for our responsible landlords across Surrey. This is evidenced through our average tenancy length being over 2 years and when tenancies do eventually come to an end, we see a higher number of tenancies ended by tenants serving notice as opposed to our landlords. Whilst we understand that these changes will impact all landlords, most of our clients typically end successful tenancies due to needing to sell or move back in and you will still be able to do so under any revised legislation.
When you have your property managed by Curchods, you will have access to expert property professionals throughout your journey as a landlord and we will unravel the complexities of any such changes for you to ensure that your investment is in safe hands. Should you wish to discuss any aspect of the bill based on your individual needs, please contact your local Curchods lettings branch where we will be happy to help.
