With the first part of the upcoming Reform Bill due to become law in September here is what it initially means for Landlords and Tenants.
What this means for Tenants
· Cannot discriminate against families or benefits claimants.
· Tenants need to give 2 months’ notice to terminate contract
· All tenancies will become periodic, meaning they will not have a fixed end date.
· Rent increases will be limited and can only be implemented once per year, using Section 13 notices and tenants will now be given a 2 months’ notice of the increase taking effect.
· Landlords will no longer be able to require multiple months’ rent in advance to secure a property.
· The bill seeks to end the practice of landlords and letting agents asking for or accepting offers above the listed rental price.
· Landlords must consider a tenant’s request to rent with a pet and can’t unreasonably refuse without a good reason
What this means for Landlords
· Private Sector Database – Landlords will need to register before letting. The portal will include compliance certificates and inform landlords of their legal responsibilities.
· Decent homes standard - meaning landlords will need to ensure their properties meet certain quality standards.
· Abolition of Section 21 "no-fault" evictions and applying Section 8 notices for possession grounds, these all have specific reasons and notice periods.
· The Bill will abolish all Assured Shorthold Tenancies (ASTs) on the 'commencement date' and all tenancies will automatically become Periodic Assured Tenancies (ie no fixed-term tenancies), with a maximum rent period of one month.
· Awaab's Law - Landlords will need to follow strict timescales for inspecting and repairing hazards such as damp and mould.
· The government will introduce a new Private Rented Sector Landlord Ombudsman Service, which all private landlords in England with assured or regulated tenancies will be required by law to join, including those who use a managing agent.
If you have any queries please don't hesitate to call our lettings manager Kerri on 01228 888 999 option 2.
