It is likely that the law relating to renting a dwelling in England is going to be subject to the biggest change in a generation. Most people taking a tenancy will have a type of short-term tenancy that allows their landlord to regain possession of the property just by following the correct procedure. Currently, the landlord does not have to demonstrate that the tenant has been 'bad', for example by not paying their rent. These are referred to as 'no fault' evictions.
If the Renters' Rights Bill becomes law, this will all change. Landlords, tenants and their advisers need to be prepared for significant changes, which the government indicates will include:
- Moving to a different type of tenancy structure
- Abolishing 'no fault' evictions
- Allowing tenants to appeal excessive rents
- Introducing a new Private Rented Sector Landlord Ombudsman
- Giving tenants strengthened rights to request a pet in the property
- Applying the Decent Homes Standard to the private rented sector
- Making it illegal for landlords and agents to discriminate against prospective tenants in receipt of benefits or with children
Many people would not think about taking legal advice, whether they are a tenant or a landlord. However, the changes that may be introduced are sufficiently important that taking legal advice may be a very prudent step. Similarly, many people invest in tenanted property (often referred to as 'buy to let') as the law has been largely on the side of the landlord for 40 years. Investors want the security of knowing that they can regain possession of the property at any time. This is likely to become more difficult – so anyone buying tenanted property should take specialist advice.
The Bill is currently working through parliament and may be subject to alteration, but everyone should be prepared for big changes to the private rented sector.
To discuss this or any other landlord and tenant matter, contact us.