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Reassurance for Landlords about Upcoming Legislation Changes
Simple Strategies to Comfort Landlords Regarding Anticipated Changes in the Renters (Reform) Bill
Adapting to Change: Lettings Industry is familiar with transformation. New regulations are a constant, addressing aspects like property safety, tenant fees, and tenant rights. The forthcoming Renters (Reform) Bill marks the next significant shift, coinciding with challenges in the private rented sector’s stock levels.
Nonetheless, there are numerous advantages within these fresh regulations, offering considerable safeguards for landlords as the legislation evolves through the parliamentary process. Drawing on insights from conversations with various agents, including my own experience as an agent, here’s a guide to assist landlords.
1) Changes to section 21 and 8- Tenants eviction clauses
Dispelling Concerns: Sections 21 and 8 Changes Are More Manageable Than They Appear
While the removal of section 21 might raise concerns, it’s essential to note that section 8 will undergo enhancements simultaneously. Ensure your agent understands your motivations for seeking vacant possession, as this will allow your agent to offer reassurance about their prospects of achieving it.
Consider scenarios where landlords intend to reclaim the property for personal use, sell it, or accommodate close family members – section 8 grounds will be applicable for all three situations.
Furthermore, the amendment addresses persistent rent arrears by fortifying the regulation to encompass three separate instances of at least 2 months of arrears within a three-year span.
Additionally, the expanded definition of actions warranting eviction encompasses tenants who cause disturbance or annoyance to the landlord, property occupants, visitors, or the property’s surroundings.
This highlights the continued latitude landlords have to regain possession of their property when valid grounds for doing so exist.
2) Embracing Periodic Tenancies for Enhanced Flexibility All Around
Enhanced Flexibility with Periodic Tenancies: Extended Notice Periods Benefit All
When transitioning to periodic tenancies, tenants will have the advantage of a two-month notice period for moving out, replacing the current one-month notice. This grants a full two months for landlords to secure replacement tenants.
According to Goodlord’s Rental Index, void periods reached an unprecedented low in July, averaging just 9 days across England—a trend influenced by robust tenant demand.
Given the current high demand from tenants, the likelihood of prolonged property vacancies is minimal.
Analysing existing tenancy trends, most tenants opt to renew their leases annually. Various reports and ongoing patterns suggest that the average tenancy duration currently exceeds two years.
Tenant relocation entails time, stress, and expenses. Considering these factors and the current statistics, there’s no substantial reason to anticipate a significant drop in tenancy lengths following the transition to assured tenancies.
3) Rent Adjustments Driven by Market Rates – Currently at Unprecedented Highs
While the concept of renewal dates will become obsolete, the Renters (Reform) Bill retains the provision for landlords and their representatives to enact annual rent adjustments.
Furthermore, rent increments must align with prevailing market rates. In July, Goodlord’s Rental Index recorded the highest average rental costs since the Index’s inception in 2019, reaching £1,367 per property.
Naturally, a localised assessment of rental rates is necessary, but indications suggest that rates are escalating more rapidly than in previous years – a positive outcome for landlords’ returns, especially those who have secured low fixed-term interest rates on their mortgages.”
4) The real estate platform will provide essential insights to assist landlords in gaining better clarity regarding upcoming changes
The property platform will necessitate landlords to input specific property details and its associated safety certificates to ensure compliance.
This initiative seeks to enhance tenants’ insight into the rental property they are considering.
Conversely, it equips landlords with accurate information to remain legally compliant and avert potential penalties.
Given the extensive array of regulations to track, this portal serves as a governmental conduit for communication with landlords.
For landlords employing agents, the updates on new requisites will further underscore the valuable role agents assume in managing these responsibilities on behalf of landlords, resulting in a mutually beneficial outcome.
5) Permitting Pets in Rental Properties Expands Tenant Options – Including Safeguards for Landlords’ Assets”
Ultimately, easing restrictions on allowing pets in rental properties will broaden landlords’ tenant selection.
Landlords will have the option to mandate tenants to obtain pet damage insurance, or tenants may be obliged to cover the premium for pet damage insurance that landlords arrange on their behalf.
Consequently, the property will benefit from additional protection beyond the confines of the security deposit, safeguarding against any pet-related damage.
Furthermore, they typically seek a stable, long-term residence, translating to consistent rental income over an extended duration.”