With the recent change from a Conservative Government to a Labour government, the UK rental market has seen several legislative changes. It is crucial for landlords to stay informed and understand how these updates impact their responsibilities. This blog aims to clarify the key changes and highlight the importance of partnering with property experts to navigate these new regulations effectively.
The Renters Reform Bill was paused ahead of the General Election and has now paved way for Labours Renters Rights Bill, set to introduce some changes that are aimed to provide more security and protection for people renting their homes.
Section 21’s:
The key policy for Labour was the abolishment of Section 21 'no-fault' evictions, meaning landlords will no longer be able to evict tenants without providing a reason. This change aims to provide more security for tenants and a driving policy in the Renters Rights Bill. However ahead of any changes and the removal of Section 21’s, the government will be reviewing other sections and updating them to make sure they are still supportive of landlords, should circumstances change.
Rental Increases:
The Renters Rights Bill will have similarities to the Renters Reform Bill in regard to rental price increases and aims to provide tenants with more rights and protections. The Renters Rights Bill proposes to allow rental increases once per year, with 2-months notice given to the tenant.
The Government hopes these changes will “prevent tenants being locked into automatic rent increases that are vague or may not reflect changes in the market price”.
If a tenant pays multiple months’ rent in advance, landlords will be required to repay any upfront rent if a tenancy ends earlier than the period that tenants have paid for. The Bill will also limit the amount of rent that landlords can ask for in advance.
Decent Home Standard:
The Decent Homes Standard was initially only implemented for the social housing sector but will now apply to the Private Rental Sector, with Labour integrating the Decent Homes Standard and Awaab’s Law into the Renters’ Rights Bill. Awaab’s Law was originally introduced in the Social Houing Regulation Act 2023, but is now likely to be extended to the Private Rental Sector.
This aims to ensure rental properties meet higher standards of living conditions, with stricter enforcement of safety and health regulations. Additionally, it aims to strengthen the dispute resolution process to provide quicker and fairer outcomes for tenants and landlords.
New Property Portal:
The Government have proposed a new digital Property Portal for both landlords and tenants to use to have more visibility of legal obligations and compliance. The Portal will hopefully help landlords understand their legal obligations and demonstrate compliance, while allowing tenants to make informed decisions when entering into new tenancy agreements. Additionally, local councils will have access to better data to crack down on criminal landlords.
The Government also intends to incorporate some of the functionality of the Database of Rogue Landlords, mandating the entry of all eligible landlord offences and making them publicly visible.
Pets In Lets:
Across both Bills, allowing pets in private rentals has been a topic of discussion for a while, with 40% of UK households owning pets. So this element is a favourite for tenants, however landlords may be able to request additional insurances should damage be caused by pets.
At Northern Group, we manage a large number of properties which are pet friendly, so can support any landlords with this throughout the management terms. Household pets are on the increase, so having an experienced Property Manager is paramount to avoid any issues that could arise.
New Mandatory Ombudsman:
Northern Group are currently members of the PRS Redress Scheme to support landlords with any tenant issues however the Renters Rights Bill proposes to introduce a single mandatory government-approved PRS Ombudsman in a bid to provide quicker, fairer and cheaper impartial resolution without going to court. This will cover all private landlords across England, whether they have agent representation or manage themselves.
This method will be cheaper than the court system and will provide landlords and tenants with a fair, impartial and binding resolution to many issues. However, more details are required regarding how and when the scheme will be set up.
With these impending changes, having knowledgeable property professionals to manage and guide you through the complexities of the rental market becomes invaluable.
Northern Group are members of ARLA Propertymark, which means we meet higher industry standards than the law demands. Our property professionals undertake regular training to ensure they are up to date with best practices and complex legislative changes. Northern Group’s commitment to professional development and adherence to high standards of property management means that landlords can trust us to handle their investments safely with expertise. The ARLA Propertymark Accreditation is a mark of quality and trust and ensures that our team meets the high standards set by the Association of Residential Letting Agents.
By staying informed and partnering with accredited professionals, landlords can navigate the evolving rental market confidently. At Northern Group, we are dedicated to helping landlords maximise their investments while ensuring compliance with the latest regulations.
For more information visit:
Northern Group Landlord Services
Northern Group Protection + Accreditations
Or contact us: 0161 974 3232 / enquiries@northerngroup.co.uk