While MPs are enjoying their summer recess, the same is not true for the majority of landlords. Property investors should be preparing for the introduction of new laws for landlords.
Incoming this autumn: new legislation for landlords
There is a raft on new legislation for landlords contained in the latest Renters Bill – or to give it its full name, the Renters’ Rights Bill, with the contents expected to become an Act this autumn. The Houses of Parliament will reconvene early next month, with the Renters’ Rights Bill expected to enter its final debate around 8th September. Royal Asset will follow quickly, with the implementation of new laws being phased in thereafter.
Many of the suggestions contained in the first iteration of the Renters’ Rights Bill have remained unchanged. This includes the abolition of Section 21 notices and the introduction of a new Decent Homes Standard, including Awaab’s Law but there were some suggested amendments just before the Houses of Parliament was dismissed for summer.
Earlier this year, LandlordBuyer documented some of the incoming tenants’ rights in this blog but the Bill may change again. The House of Lords proposed a number of tweaks in July that could result in revised or new laws for landlords. It’s these alternatives that will be soon be debated.
Impromptu property inspections proposed
Perhaps the most worrying potential landlord new law pertains to inspections. The House of Lords agreed that local councils should have the power to conduct unannounced inspections of privately rented properties. The only person that would be given notice would be the tenant - the landlord would only find out about the local authority visit after it had happened.
Pet damage deposits suggested
Taking a more accommodating approach to pets in lets remains one of the new laws for landlords but the House of Lords recommended the creation of a pet damage deposit equivalent to three weeks’ rent, with an amendment to the Tenant Fee Act 2019. Whether this extra deposit amount would cover the severity of damage caused by cats and dogs remains to be seen.
Landlord new law for smaller students lets
One of the Renters Bill’s earlier amendments concerned the regaining of student properties. Ground 4A of the Renters’ Rights Bill was altered so landlords of student HMOs could operate outside of the mandatory switch to rolling periodic tenancies. The House of Lords, however, recommended that landlords of all student lets - including one- and two-bedroom properties – should enjoy the right to regain and relet properties in line with university academic years.
The small print you may have missed
Also worth noting was the House of Lords’ recognition that the court system would struggle to cope if it was made easier for tenants to challenge unfair rent rises. Instead of a ‘straight to court’ route, it suggested a triage system was put in place to filter cases before they reach court.
Finally, the House of Lords took some pity on landlords and proposed a concession to Ground 1A in the existing Renters Bill. As it stands, the Bill details that landlords could only re-let one of their buy-to-let properties that has failed to sell 12 months after a notice has been served. The House of Lords would like the 12 months cut to 6 months.
Amendments not set in stone
Property investors must remember that the new laws for landlords detailed above are proposed suggestions made by the House of Lords. When MPs return from their summer recess, ‘ping pong’ will begin. This is when the suggested amendments to the Renters’ Rights Bill are debated.
It is highly likely the amendments outlined above will be rejected or watered down, as the House of Commons has a Labour majority and it prefers a hardline tenant-biased slant. Landlords selling a tenanted property and investors who need to sell a property portfolio are welcome to contact LandlordBuyer for advice on how the Renters’ Rights Bill will affect their imminent plans. Contact us today, especially if you need to sell property fast for cash.