There is plenty of change in the lettings industry, with the prospective ‘Renter’s Reform Bill’ White Paper and this is going to take some working through. We think will be a step-change in how the letting industry will move forward once this comes into fruition.
The objective of the Bill is to seek to give tenants more power and leverage within the PRS which the Government see as being loaded in favour of landlords and agents.
There are a various key points within the Bill.
To seek to introduce a decent homes standard in addition to the legislation that is already in place as far as safety legislation for gas, including smoke and carbon dioxide detectors, regular electrical checks as well as minimum standards for an Energy Performance Certificate.
Increase enforcement action to be given to local authorities.
Abolish Section 21 evictions and what can sometimes be referred to as ‘no fault’ or ‘revenge’ evictions. This is designed to give more security to tenants and create a new system of periodic tenancies to replace the current Assured Shorthold Tenancy (AST). This is designed to offer flexibility for landlords and tenants should either party’s personal circumstances change and allow tenants to challenge poor standards without fearing that they will be served a Section 21. What will replace this; we will have to wait and see.
There are also proposals to limit rent increases to once a year, setting up a single and mandatory ombudsman for landlords to handle tenant complaints, speed up court delays, introduce a property portal to enable tenants to verify landlord compliance. Other proposals are that local councils will have more powers of investigation, prevention of landlord’s and agents applying blanket bans on tenants with families or on benefits and pets.
The letting professionals and government will be working through the whole paper ahead of any enactment.
Let us not forget that there are plenty of agents who are doing a great job making sure that their clients are providing excellent homes and understanding their responsibilities whilst making sure that tenants know their rights.
Rental properties are already in short supply so it is important that there is a balance otherwise we will face major exodus of small and independent landlords which would see further stress on an already acute housing shortage.
){kind=link}