The most significant reforms to the private rented sector in England for a generation are expected to become law this summer. The new Renters’ Rights Bill[1] is progressing through Parliament and will introduce major changes for landlords and tenants.
These reforms are designed to improve tenant security and raise housing standards across the board. For landlords, this is the time to understand the new landscape, consider the impact on your properties, and prepare for the new responsibilities ahead.
At Yes Mortgage Services, we know that staying informed is key to managing your buy-to-let portfolio successfully. Here’s a clear guide to the main changes you can expect, based on the details published by the UK Government.
Key Changes Coming for Landlords
- The End of Section 21 (‘No-Fault’) Evictions
The Bill will abolish Section 21 evictions, meaning landlords will no longer be able to end a tenancy without giving a specific, legally valid reason. If you wish to regain possession of your property, you will need to use one of the updated grounds for possession under Section 8. These include wanting to sell the property, moving in yourself, or responding to tenant breaches like rent arrears or antisocial behaviour.
- Simpler, More Flexible Tenancies
All new tenancies will be periodic by default, rolling from month to month. This replaces fixed-term agreements and means tenants can end their tenancy at any time by giving two months’ notice. This change is intended to give tenants more flexibility.
- New Legal Obligations for Landlords
The Bill introduces several new requirements that all landlords must meet:
- A New Landlord Ombudsman: It will be mandatory to join a Private Rented Sector Landlord Ombudsman Scheme, which will handle dispute resolution.
- A National Landlord Database: You will be required to register yourself and your properties on a new national Private Rented Sector Database.
- The Right to Request Pets: Tenants will have the legal right to request to keep a pet, and landlords cannot unreasonably refuse. You can, however, require the tenant to take out pet insurance.
- Applying the Decent Homes Standard: This safety and quality standard, already used in social housing, will now apply to all privately rented homes.
- No More ‘Rental Bidding’: Landlords must advertise a fixed rent and are not permitted to encourage or accept bids above that price.
- Ending Discrimination: It will be illegal to have blanket bans on renting to tenants with children or those who receive benefits.
What Landlords Should Be Doing Now
With the Bill expected to become law soon, proactive landlords should start preparing.
- Review Your Properties: Check if your properties will meet the Decent Homes Standard and identify any upgrades that may be needed.
- Assess Your Portfolio: This is a good time to review your overall investment strategy. The new rules may influence decisions about which properties to keep, sell, or refinance.
- Prepare for New Processes: Familiarise yourself with the new grounds for possession and prepare for the requirements of the new ombudsman and database.
Supporting You Through Change
These reforms are significant, but they aim to create a fairer and more professional rental market. For landlords who already provide high-quality homes, these changes will simply formalise best practices.
The new landscape may prompt you to review your buy-to-let mortgage arrangements, whether it’s to release equity for property improvements or to restructure your portfolio. Our expert team at Yes Mortgage Services Limited is here to help you navigate your options with access to a comprehensive panel of lenders and no broker fees.
Contact us today to discuss your buy-to-let strategy and ensure you’re in the strongest possible position for the future.
[1] https://www.gov.uk/government/publications/guide-to-the-renters-rights-bill/guide-to-the-renters-rights-bill
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