Phil Cooper, partner in the lettings department at Arnolds Keys, discusses the new Renters' Rights Bill.
The second reading of the Renters' Rights Bill (RRB) in the House of Commons on Wednesday was a rather one-sided affair.
It is clear this piece of legislation is a political priority for a government which is looking for quick wins. The RRB is a broadly popular piece of legislation which doesn’t require an injection of public spending, so it delivers low-hanging fruit for a new government struggling to make its mark.
Not only is it a racing certainty that the bill will become law with few amendments, but its passage through parliament is unlikely to be a drawn-out affair. The time for debating its rights and wrongs are over.
Now we must concentrate on what we have to do to make it work for landlords and tenants when it comes into force – something which could well happen as early as spring.
The abolition of Section 21 ‘no fault’ evictions has been the attention-grabber, but sensible landlords will be looking beyond the headlines and seeing for themselves what the bill actually involves.
Though Section 21 will indeed be abolished, landlords will still be able to get their properties back via a beefed up Section 8 process – should they want to sell the property, live in it themselves, or if their tenants have breached the terms of their agreement.
That said, not all of the changes to Section 8 are in the landlord’s favour. Evictions for non-payment of rent will only be possible after three months of arrears (currently two months), and then the tenant will be entitled to four weeks’ notice (currently two). So landlords may want to reconsider their need for Rent Guarantee Insurance, especially if they have a mortgage to pay.
Major legislative changes like the RRB are not uncommon when there is a new government, and it is important to look forward to how we can make the new situation work.
It is crucial that landlords understand what the new legislation means for them so that they are prepared and don’t get caught out. That means actually reading the bill (which is available on the UK Parliament website) and taking advice from an expert letting agent who can walk you through its implications.
For more information, visit arnoldskeys.com
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