RENTERS RIGHTS BILL - UPDATED FACTSHEET

RENTERS RIGHTS BILL - UPDATED FACTSHEET

Whilst the bill hasn't come into law yet, there's time to get yourself well informed of what impact it will have on you. It will affect all AST tenancies and all landlords. Click through to see the main points.

1. Transition to Periodic Tenancies
All fixed-term tenancies will automatically convert to periodic tenancies, regardless of the remaining term on the Assured Shorthold Tenancy (AST). This change allows tenants to provide two months' notice at any time.
2. Elimination of Section 21 Notices
Section 21 "no-fault" eviction notices will no longer be permissible. Landlords may only issue notices to tenants if a valid reason is provided, with extended notice periods required. For instance:
  - If the landlord intends to move back into the property, a minimum of four months' notice is required.
  - If the landlord wishes to sell the property, four months' notice must be given. Additionally, the property cannot be relet within 16 months from the date of notice, under penalty of fines for both the landlord and their agent.
Landlords are advised to maintain thorough documentation when issuing notices to ensure agents are well-informed. Notably, initial tenancies are protected for 12 months.
3. Rent Arrears Policy
If a tenant accrues rent arrears, landlords may issue four weeks' notice after the tenant has been in arrears for three months. This replaces the previous threshold of two months in arrears with two weeks' notice.
4. Pet Ownership
Landlords may not unreasonably refuse tenants the right to keep pets. However, refusal is permitted if the property lease explicitly prohibits pets.
5. Upfront Payments
Landlords are prohibited from requesting more than one month’s rent in advance. This restriction prevents accepting upfront payments from prospective tenants who fail to meet referencing criteria.
6. Rent Increases
Rent increases may only occur once within a 12-month period and require at least two months’ notice. These increases must be fair and, if contested, may be challenged by the tenant through a tribunal.
7. Mandatory PRS Registration
Landlords must register with a Private Rented Sector (PRS) database and the PRS Ombudsman. Properties cannot be rented if the landlord is not registered.
8. Decent Homes Standard and Awaab’s Law
Landlords must adhere to minimum property standards as outlined by the Decent Homes Standard and Awaab’s Law. Non-compliance may result in fines or prosecution.

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