The Renters’ Rights Bill represents one of the most significant legislative changes to the rental market in the last 30 years. We caught up with Neil Hogbin, a partner in our rural property management team, to examine how the Bill will affect the market and why it could spell the end for rogue landlords.
Five years after the previous Conservative government spoke about reforming renters’ rights, it is the new Labour government that is putting the Bill through Parliament. After all these delays, we finally have details on what the Bill will include.
The main changes to current legislation include the banning of evictions under Section 21 of the 1988 Housing Act – commonly known as ‘no-fault’ evictions – applying a ‘Decent Homes Standard’ to the private sector and introducing an ombudsman to settle complaints.
These changes will provide greater security for tenants. Having an ombudsman will force landlords to list compliance measures in their properties, such as gas safety certificates. They will also have to pay to register with the ombudsman, which has been described by some in the industry as a ‘stealth tax’.
Such measures, although increasing red tape, will force rogue landlords to improve or leave the market, giving tenants greater peace of mind. It will also mean there will be longer notice periods should a landlord wish to live in or sell their property, giving tenants more time to find a new home.
The Bill in its current form should not worry responsible landlords and will be welcomed by tenants. Agencies like Fisher German have a robust process not only when it comes to which landlords they work for but also in assessing potential tenants. Good landlords view their properties as serious investments and do everything they can to provide a good standard of housing for their tenants. Many are perfectly happy to spend money on ensuring their properties meet these standards and have nothing to hide when it comes to compliance.
On the agency side, having these clear standards in place protects them from frivolous complaints from a minority of tenants whose expectations do not always align with what is deemed to be acceptable. Should the Bill gain Royal Assent, there is a danger that some good landlords may leave the market due to the increased costs.
In addition, unscrupulous landlords will always try to find a way to bend the rules no matter what they are. However, this is the price Labour is willing to pay to discourage most rogue landlords from providing substandard properties within the private sector.
