The private rented sector in England accounts for 19% of households, which is a whopping 4.6 million properties. With so many households being privately rented, there is a lot of legislation and regulations around the sector.
If you’re a landlord, the chances are, you’ve heard about the new whitepaper. This report, titled A Fairer Private Rented Sector, aims to reduce concerns about the security of tenure and the quality of rental accommodation.
But what does this actually mean? If you’re a landlord or a tenant and you want to understand more about how this legislation impacts you, Aspire to Move are here to help.
What does the whitepaper cover?
The report builds on the Levelling Up and Regeneration Bill from May 2022, and introduces a 12-point action plan. These 12 points include:
- By 2030, the aim is to reduce the number of substandard rented homes by 50% and ensure that privately rented properties meet the Decent Homes Standard.
- Section 21 of the Housing Act 1988, which allows for no-fault evictions, will be abolished.
- The grounds for possession will undergo reform.
- Rent increases will be limited to once a year, and the use of rent review clauses will be eliminated.
- A single ombudsman will be established to oversee all private landlords.
- A new digital property portal will be introduced for landlords, tenants, and local authorities.
- Landlords or agents will be prohibited from implementing blanket bans on renting to families with children or those receiving benefits.
What does this mean for the rental market?
This whitepaper has been introduced to try and restore the balance between landlords and private rented tenants. For example, one of the 12 points covered within the legislation is to abolish Section 21 of the Housing Act. This means that landlords will only be able to evict a tenant in reasonable circumstances.
At present, landlords can evict residents without reasonable cause any time after a tenancy has started. The Section 21 revoke means that the eviction process will be fairer for tenants.
However, the grounds of possession under Section 8 will also be reformed. This will level the playing field between protecting the security of tenants and allowing landlords the right to manage their own property.
This will include a new mandatory rule for eviction where a tenant has been in at least two months’ rent arrears, three times within the previous three years. The notice period for the existing rent arrears eviction grounds will be increased to four weeks. In the case of criminal behaviour, the notice period for the existing mandatory eviction ground will decrease.
A new rule for landlords who want to sell their property will also be introduced, allowing landlords and their family members to move into a property that they own.
Effective communication between landlords and tenants is a significant aspect, emphasised in the white paper. It is crucial for both parties to understand their rights and responsibilities to foster successful and long-term tenancies.
In response to the evidence presented, the government intends to enhance the How to Rent Guide by including comprehensive information on the rights and responsibilities of tenants and landlords. The guide will be translated into multiple languages to ensure accessibility for all individuals.
There are a range of other clauses that have been added or amended in the whitepaper, so it may be worth reading the whole document here.
How Aspire to Move can help
Given the multitude of changes and new legislations that are being implemented, it is understandable for both tenants and landlords to feel overwhelmed. However, you don’t have to navigate these complexities alone. Our experienced team is here to offer you valuable advice and support, regardless of whether you’re a landlord or a tenant.
If you want to get support with understanding your options or have any questions around this new legislation, please get in touch with us and one of our friendly team will be happy to help.
