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Tag: no-fault evictions

Renter’s Rights Bill – What does it mean for you?

Posted on by prateek

The renter’s rights bill was published last week. It is important to note that the following is not yet law as it must be passed through parliament. Many Landlords are apprehensive about these proposed sweeping changes to the private rental sector. So, let’s explore the bill’s key points and what this means for tenants and landlords.

THE ABOLITION OF SECTION 21 NOTICES –

Section 21 evictions have been long used by landlords as a means of terminating a tenancy agreement without any reason.  This system will be replaced by a new measure that will only permit evictions under certain conditions, such as rent arrears or the landlord wishing to sell up. Whilst this may initially be seen as restrictive, it has been on the horizon for a while as this was also a measure proposed in the Renters Rights Act, the previous bill by the conservative party, and we have previously spoken about the limited impact this change may have.

Going back to the point, landlords in Bath and beyond will now need to follow stricter legal grounds for eviction and ensure that they are treating their tenants fairly and making sure they are not displacing their tenants.

RENTAL INCREASES AND BIDDING WARS –

Rent control mechanisms in the Bill aim to standardize rent increases across the board. It has been proposed that landlords will only be allowed to raise rents once a year and tenants will have the power to challenge this, if they deem the rent increase as excessive, at a tribunal. The aim here is to prevent unfair rental hikes from being used as an undercover eviction. Despite this, Landlords will still be free to increase the rents in line with market rates.

Another significant proposed change is the prohibition of bidding wars. In recent years since the rental market demand has far exceeded supply, there has been an increase in these rental bidding wars where tenants are bidding higher than the advertised rent to secure a property they may know has been garnering a lot of interest. Under the Renters Rights Bill, this practice will be outlawed. Lettings agents and Landlords will be forced to publish a clear asking price for rent and will not be allowed to accept offers over this rate.

DECENT HOMES STANDARD AND AWAAB’S LAW –

The introduction of the Decent Homes Standard into law aims to make sure that all properties in the private rental sector abide by a minimum safety and quality standard. Landlords in Bath and beyond will need to make sure their properties comply with these standards or they will risk facing penalties. This is an expansion of the existing standard that applies to social housing, ensuring those in the private rental sector are entitled to the same level of safety and decency in their homes.

Awaab’s Law, named after a traffic case of a child who died from exposure to mould in social housing, will also be extended to the private rental sector. This will place a legal requirement on landlords to address serious health hazards within a specified time frame. Whilst this may seem like a major regulatory burden, many landlords are already maintaining these standards so will find compliance with these new regulations relatively straightforward.

RENTING WITH PETS –

Another headline from the bill is the enhanced ability for tenants to keep pets. Landlords will no longer be allowed to refuse pet requests without reasonable grounds. However, to address concerns about the potential damage a pet may cause to the property, landlords can now require pet insurance to cover any damage.

STRENGTHENED LOCAL AUTHORITY POWERS –

Local councils will be granted additional powers to enforce the rules laid out in the Bill. This included the ability to levy fines of up to £7,000 for initial breaches of the above, and escalating to £40,000 for repeat offences. Whilst these new powers may be daunting, they are largely targeted at rouge landlords, and those who already comply with existing regulations are likely to be unaffected.

If you have any further questions, then do not hesitate to get in touch and if you would like to read further into this then click the link below ⬇️

https://www.gov.uk/government/publications/guide-to-the-renters-rights-bill/82ffc7fb-64b0-4af5-a72e-c24701a5f12a

Section 21: will it stay or will it go?

Posted on by prateek

It’s been a tough week to keep up with exactly what’s happening to Section 21. Although this video was recorded shortly before the PMQs during which the Prime Minister appeared to confirm that Section 21 would be abolished, it’s pretty much hit the nail on the head (if I do say so myself!).

It’s been a tough week to keep up with exactly what’s happening to Section 21. Although this video was recorded shortly before the PMQs during which the Prime Minister appeared to confirm that Section 21 would be abolished, it’s pretty much hit the nail on the head (if I do say so myself!).

Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.

What’s Happening to Section 21?

Posted on by prateek

 

The Government’s election manifesto confirmed its plans to abolish Section 21 of the Housing Act and improve the grounds for eviction set out in Section 8 of the Act. The timescale of these changes is currently unknown but, once implemented, landlords will need to know how to bring a tenancy to an end legitimately.

What is Section 21?

Outside of the fixed term period, Section 21 of the Housing Act 1988 permits a landlord to evict a tenant by serving two months’ written notice to terminate the tenancy. The landlord does not need to cite a specific reason for ending the tenancy and, as long as they have complied with certain legal obligations during the tenancy, the notice can be upheld.

These are commonly known as ‘Section 21’ evictions or ‘no-fault’ evictions because the landlord does not need to provide any grounds for eviction.

What is Section 8?

Currently, a landlord can only seek possession within a fixed term by applying to the court for possession under Section 8 of the Housing Act, citing one or more of the grounds contained in Schedule 2.

These grounds include the mortgage lender being entitled to possession of the property, the tenant being at least two months in rent arrears or a breach of the tenancy agreement, amongst several other grounds. These are commonly known as ‘Section 8’ evictions.

Why does the Government want to remove Section 21 notices?

The Government has expressed its intention to modernise the private rented sector, and intends to introduce a new, fairer deal for both landlords and tenants. They hope to abolish Section 21 by removing assured shorthold tenancies; instead, Section 8 would have enhanced grounds for which a landlord can evict a tenant and a streamlined process through the courts, so landlords with justified grounds aren’t waiting too long to evict a tenant.

“ARLA Propertymark will be engaging with the Government to ensure they fully understand the consequences of any changes, and we will be scrutinising the legislation, to ensure landlords have the ability to regain their properties if needed.”
David Cox, ARLA Propertymark Chief Executive

The changes would hopefully mean that tenants would have the security of staying in their property for as long as they need to, and landlords would be able to quickly and fairly evict tenants if they break the terms of their agreement, or if the landlord wishes to take back the property to sell or live in themselves.

Confused?

The government’s drive to raise standards in the private rental sector means that there are now nearly 150 pieces of law affecting tenancies. It has never been more important for your tenancy to be managed by a knowledgeable, professional and regulated agency.

For guidance on all aspects of tenancy management, or if you are considering letting your property in Bath, contact us on 01225 445777 or info@localhost.