The dust is already settling after the Government published its Fairer Private Rented Sector White Paper – the accompanying document to the Renters’ Reform Bill. Landlords across the country will be digesting the details of what will change in the lettings sector and how the new laws will impact their buy-to-let future.
Did you have time to read the entire White Paper? If not, here are the snapshot details landlords need to know:-
- Section 21 ‘no fault’ evictions will be banned. Landlords will lose the right to regain their property without reason. Instead, they’ll need to cite an ‘acceptable reason’ that the Government will soon define in law. It’s unclear whether regaining a property to sell it or live in will be deemed an ‘acceptable reason’.
- The ability to select tenants will become harder. The Government wants to make it easier for all renters to secure a property in the private rental sector. As a result, landlords will find it harder to refuse tenants who have children or who are in receipt of benefits, as there will be a blanket ban on ‘no benefits’ and ‘no children’.
- Lets with pets will become the norm. There will also be a blanket ban on refusing tenants with pets. Instead, tenants will have a legal right to rent with a domestic animal. All landlords will be required to consider renting a property to tenants with a pet and they must have a good reason if they need to refuse.
- Rent rises will be pegged to once a year. Landlords will no longer be able to raise the rent when they like. Instead, rents can only be adjusted on an annual basis and landlords will have to use a formal Section 13 notice to make changes to the price. As well as the new cap, landlords will have to give tenants twice as much notice that they intend to raise the rent, with a new notice period of two months.
- Rental property conditions will be standardised. The introduction of a new Decent Homes Standard will see all privately rented properties fall in line with a set standard to improve living conditions. This will be in addition to the Landlord & Tenant Act 1985 and the Homes (Fitness for Human Habitation) Act 2018, suggesting further improvements to rental properties will be required.
- A landlord register is a step closer. While there is no clear cut introduction of a landlords’ register, a new, online compliance hub for landlords is being launched by the Government. Rumours suggest landlords will have to register to access the information, therefore creating a register by default
Total Landlord Insurance wasted no time in questioning landlords about the White Paper specifics, with 60% saying they opposed the ban of Section 21 evictions. When it came to the ability to choose the type of tenant they accepted, 57% said they were against tenants having the right to rent with a pet, while 59% didn’t agree with lifting a blanket ban on renting to tenants with children and those in receipt of benefits.
With more laws to abide by and compliance to implement, it comes as no surprise that 17% of those taking part in Total Landlord Insurance’s survey said the contents of the White Paper would lead them to reducing the size of their buy-to-let portfolio. This 17% are among a growing number of landlords considering quitting buy-to-let in 2022.
If the Fairer Private Rented Sector White Paper feels anything but fair to you as a landlord, get in touch. We are already helping landlords sell property fast and dispose of their buy-to-let portfolios ahead of other punitive changes, such as increasingly stringent EPC rules.
LandlordBuyer will purchase any investment property or buy-to-let portfolio for cash. Enjoy completion in as little as seven working days, with no need for an estate agent. Sell with a short lease, with subsidence or event with tenants in situ. Contact us today or request a valuation now.