Suzanne Smith, a lawyer turned landlord and the person behind The Independent Landlord, discusses the significant changes brought by the Rentersโ Rights Bill and how it will impact landlords, letting agents, and tenants in the UK.
She explains that while tenants have the right to quiet possession, which can make it difficult to show properties or evict them, most tenants typically vacate when served with a Section 21 notice.
However, the new legislation could change that dynamic, with landlords needing to go through the courts to regain possession if the tenant doesnโt leave voluntarily.
With the Rentersโ Rights Bill coming into effect, landlords face new challenges.
For example, it will become harder to sell properties with vacant possession, as landlords will not be able to re-let or list properties for rent or as an Airbnb during a 12 month period following a tenantโs departure. The tenantโs ability to claim up to 24 months of rent through Rent Repayment Orders is also a key change, giving tenants more time to recover overpaid rent. Additionally, there are stricter penalties for landlords who misuse possession grounds, such as claiming they intend to sell when they have no intention to do so.
The new rules surrounding rent increases will also change. Landlords will be restricted to raising rents only once a year, and any rent increases will have to be done through a Section 13 notice. Tenants will have more power to challenge these increases without the fear of the rent being backdated. This will likely make the rent increase process more transparent but also slower, as any challenges could delay the rise until a decision from the First-tier Tribunal is made.
Suzanne also touches on how the Renters' Rights Bill will impact landlordsโ ability to manage their properties, particularly those with student tenants or HMOs.
The changes are seen as a challenge for amateur landlords, and Suzanne suggests that the days of the 'amateur landlord' are numbered. Those who do not keep up with the changes may find it more difficult to manage their properties effectively. However, for those landlords who are prepared and understand the new rules, there could still be opportunities to navigate the system successfully.
Furthermore, the rules around rent in advance, especially for tenants with poor credit histories, are likely to have unintended consequences, making it harder for certain tenants to rent homes. The issue of collecting the first monthโs rent will also become more complicated, as asking for it before the tenancy agreement is signed could breach the Tenant Fees Act.
Suzanneโs blog, The Independent Landlord, offers ongoing advice and insights, especially from a legal perspective. It can be found at theindependentlandlord dot com , where she also shares a weekly newsletter with over 8,000 subscribers, including many letting agents.
YouTube Video
https://lnkd.in/eHbadKbZ
