Rent reform bill

ThorOdinson

Grumpy_chap said:

Sea_Shell said:

I think there are going to be many "unforeseen circumstances" of these measures.    

If I were a tenant, I wouldn't be cheering just yet.  

To be fair, if the rules are going to work in a way that rental market continues to be viable, any change has to be balanced so that LL's don't all sell up or massively increase rents to cover the increased risk.  If the rules are sensible, neither Tenants or LLs will be able to cheer or unduly moan.

Zoe02 said:

• Landlords will no longer be able to unreasonably refuse tenants’ requests to keep pets. Tenants can request pet ownership, and landlords cannot refuse without a good reason.

Our BTL is leasehold and the headlease prohibits the keeping of pets.  Will that be a good reason for us to continue to prohibit pets?

Zoe02 said:

6. Banning Blanket Bans on Certain Tenants

• Landlords will be prevented from imposing blanket bans on renting to families with children, tenants on benefits, or other protected groups.

We always ensure that any new T is suitable to be accepted for ret income protection insurance.  The constraints about benefits etc. are imposed by the underwriter, not by us.
How will that pan out in the future?

We have had Ts with children - it's probably a good thing as becoming a parent tames even the wildest amongst us.

I have no knowledge whether Ts are in any other protected group or not as the question is simply never asked, not by me anyway.

Thank you @Zoe02 for putting together the summary of proposed changes.

Hopefully requiring eligibility for insurance will be banned. It's a blanket ban on certain categories of tenant, effectively.

ThorOdinson

Zoe02 said:

Grumpy_chap said:

Sea_Shell said:

I think there are going to be many "unforeseen circumstances" of these measures.    

If I were a tenant, I wouldn't be cheering just yet.  

To be fair, if the rules are going to work in a way that rental market continues to be viable, any change has to be balanced so that LL's don't all sell up or massively increase rents to cover the increased risk.  If the rules are sensible, neither Tenants or LLs will be able to cheer or unduly moan.

Zoe02 said:

• Landlords will no longer be able to unreasonably refuse tenants’ requests to keep pets. Tenants can request pet ownership, and landlords cannot refuse without a good reason.

Our BTL is leasehold and the headlease prohibits the keeping of pets.  Will that be a good reason for us to continue to prohibit pets?

Zoe02 said:

6. Banning Blanket Bans on Certain Tenants

• Landlords will be prevented from imposing blanket bans on renting to families with children, tenants on benefits, or other protected groups.

We always ensure that any new T is suitable to be accepted for ret income protection insurance.  The constraints about benefits etc. are imposed by the underwriter, not by us.
How will that pan out in the future?

We have had Ts with children - it's probably a good thing as becoming a parent tames even the wildest amongst us.

I have no knowledge whether Ts are in any other protected group or not as the question is simply never asked, not by me anyway.

Thank you @Zoe02 for putting together the summary of proposed changes.

Personally, I prefer not to have pets due to my phobia of dogs. I own two flats: one on the ground floor and another on the second floor without a private garden. Therefore, I won’t be accepting pets, but I’ll need to gather more information first.

There are always ways to manage this, unless a tenant falsely claims they don’t have a pet when they actually do.

A phobia of dogs is no reason to ban other pets, such as cats.

Hopefully you would be required to provide evidence of this phobia, such as seeking treatment for it from your GP. Otherwise it would be too easy for LLs to make that claim.

ReadySteadyPop

jimbog said:

R200 said:

Interest rates will keep going up

I wouldn't make a financial decision that relied on this 

Millions made financial decisions that relied on them staying down.

jimbog

ReadySteadyPop said:

jimbog said:

R200 said:

Interest rates will keep going up

I wouldn't make a financial decision that relied on this 

Millions made financial decisions that relied on them staying down.

Perhaps, but I really wouldn't advise you to use that in what you decide to do

[Deleted User]

_Penny_Dreadful said:

Zoe02 said:

I have no plans to sell, and my current tenants are great. I issued a Section 21 notice in June of last year. Moving forward, I believe landlords will be more selective when choosing tenants.

Summary 

The UK Renters (Reform) Bill, introduced to Parliament in May 2023, aims to overhaul the private rental sector in England. It focuses on improving renters' rights, ensuring fairer tenancies, and making the rental system more transparent and secure. Below is a summary of its key features:

1. Abolition of Section 21 'No-Fault' Evictions

• Section 21 of the Housing Act 1988 allows landlords to evict tenants without giving a reason at the end of a fixed-term tenancy.
• The Renters Reform Bill seeks to abolish Section 21, giving tenants more security by ensuring landlords can only evict tenants with a valid reason under specified circumstances.

2. Stronger Grounds for Eviction Under Section 8

• The Bill strengthens Section 8, which allows landlords to evict tenants with a valid reason, such as rent arrears or anti-social behavior.
• It introduces new grounds for landlords to reclaim their property, such as if they want to sell the house or move in a family member.

3. Periodic Tenancies

• Fixed-term tenancies will be replaced by periodic tenancies, meaning that tenancies will automatically renew on a monthly basis.
• This change will make it easier for tenants to move without being locked into long-term contracts, giving them greater flexibility.

4. Rent Review Changes

• Rent increases will be limited to once a year, and landlords will have to provide two months’ notice before raising rent.
• Tenants will have the right to challenge unfair rent increases through the First-tier Tribunal.

5. Property Standards and Pets

• The Bill introduces a Private Rented Sector Ombudsman to help tenants resolve disputes with landlords more efficiently.
• Landlords will no longer be able to unreasonably refuse tenants’ requests to keep pets. Tenants can request pet ownership, and landlords cannot refuse without a good reason.
• It also strengthens rules around property maintenance to ensure homes meet decent home standards, covering things like repairs, safety, and energy efficiency.

6. Banning Blanket Bans on Certain Tenants

• Landlords will be prevented from imposing blanket bans on renting to families with children, tenants on benefits, or other protected groups.

7. Creation of a New Ombudsman and Property Portal

• The Bill will establish a Private Rented Sector Ombudsman to handle tenant complaints more effectively.
• A Property Portal will be created to provide tenants with information on landlord compliance with legal obligations, increasing transparency in the rental market.

8. Notice Periods for Renters

• The Bill will increase tenants' notice periods from one to two months when they wish to vacate the property, helping landlords maintain better control over planning.

9. Greater Enforcement and Penalties

• The bill allows for greater enforcement powers to ensure compliance, including fines for landlords who do not adhere to these rules.

This is for the old Renters’ Reform Bill from the previous government. It’s the Renters’ Rights Bill, which I linked to on the first page, that has been introduced by Labour. There are some similarities but they are not the same. 

The Labour Party's **Renters’ Rights Bill**, introduced in September 2024, aims to significantly improve tenants' rights in the UK, focusing on creating a fairer rental system. Key proposals in the bill include:

1. Ban on No-Fault Evictions: Section 21 evictions, which allow landlords to evict tenants without reason, will be abolished for both new and existing tenancies. This provides tenants with more security, preventing landlords from removing them unfairly or as retaliation for complaints.

2. Extension of Awaab’s Law Inspired by the tragic case of a child who died from mold exposure, this law will now apply to private landlords, requiring them to address health hazards such as damp and mold within strict timeframes. Failure to comply could result in fines.

3. Limits on Rent Increases and Bidding Wars: Rent hikes will be limited to once a year, in line with market rates, and landlords will be banned from accepting offers above the advertised price to prevent bidding wars. Although Labour has ruled out formal rent controls, tenants will have stronger grounds to challenge excessive rent increases.

4. Pet Ownership and Other Protections: Tenants will have the right to request permission for pets, and landlords cannot unreasonably deny such requests. Additionally, the bill prohibits discrimination against renters on benefits or those with children.

These reforms aim to shift the balance of power between landlords and tenants, providing greater housing stability and protection, while addressing key issues such as affordability, health, and safety. The bill is expected to take effect by summer 2025..

[Deleted User]

ThorOdinson said:

Zoe02 said:

Grumpy_chap said:

Sea_Shell said:

I think there are going to be many "unforeseen circumstances" of these measures.    

If I were a tenant, I wouldn't be cheering just yet.  

To be fair, if the rules are going to work in a way that rental market continues to be viable, any change has to be balanced so that LL's don't all sell up or massively increase rents to cover the increased risk.  If the rules are sensible, neither Tenants or LLs will be able to cheer or unduly moan.

Zoe02 said:

• Landlords will no longer be able to unreasonably refuse tenants’ requests to keep pets. Tenants can request pet ownership, and landlords cannot refuse without a good reason.

Our BTL is leasehold and the headlease prohibits the keeping of pets.  Will that be a good reason for us to continue to prohibit pets?

Zoe02 said:

6. Banning Blanket Bans on Certain Tenants

• Landlords will be prevented from imposing blanket bans on renting to families with children, tenants on benefits, or other protected groups.

We always ensure that any new T is suitable to be accepted for ret income protection insurance.  The constraints about benefits etc. are imposed by the underwriter, not by us.
How will that pan out in the future?

We have had Ts with children - it's probably a good thing as becoming a parent tames even the wildest amongst us.

I have no knowledge whether Ts are in any other protected group or not as the question is simply never asked, not by me anyway.

Thank you @Zoe02 for putting together the summary of proposed changes.

Personally, I prefer not to have pets due to my phobia of dogs. I own two flats: one on the ground floor and another on the second floor without a private garden. Therefore, I won’t be accepting pets, but I’ll need to gather more information first.

There are always ways to manage this, unless a tenant falsely claims they don’t have a pet when they actually do.

A phobia of dogs is no reason to ban other pets, such as cats.

Hopefully you would be required to provide evidence of this phobia, such as seeking treatment for it from your GP. Otherwise it would be too easy for LLs to make that claim.

Will cross it when i get there.

I am very selective of my tenants for my mental health also. 

caprikid1

I think overall the losers will be the Tenants, I can only see less landlords willing to add to their supply and many new landlords being put off with rents increasing.

There may be a downward pressure on property prices but I just don't see a mass exit just a further worsening of the supply.

This bill needed to be backed with more investment in quality social housing to fill the gap, good for tenants if you actually find a place you can afford to rent...

theartfullodger

R200 said:

Interest rates will keep going up

BoE base rate hit 17% in 1979 under Thatcher.  I had a fit then large mortgage - it was painful. 

Thatcher.

You young kids these days, no idea, no idea.

Sea_Shell

What about Guarantors?

Is there any mention of them in the legislation?

Could LL just insist on one for any new tenancies, therefore getting round those rules around social tenants etc. as they are unlikely to be able to find one.

Olinda99

yes they could require a guarantor. I read there is a big increase in guarantor requirements lately