Landlords need to prepare now for one of the most comprehensive overhauls of tenancy law in decades, experts at a law firm have urged.
Senior lawyers at Ellis Jones Solicitors say the Renters Rights Bill will affect every private landlord and letting agency in England if passed as expected in the next few months.
The firm, which recently held the latest in a series of seminars on the subject, believes reforms included in the Bill represent a ‘significant shift’ towards tenant security with greater responsibilities placed on landlords and agents.
In presentations landlords and agents, Ellis Jones representatives Conor Maher and Dan Flynn outlined progress with the Bill and its implications for the private rented sector.
“The direction of reform is clear: a significant shift towards tenant security, transparency and regulatory oversight in the private rented sector. Landlords need to prepare now, not later, for the sweeping changes which will come into effect once the Bill passes its final legislative stages after the summer parliamentary recess” says Maher.
Flynn adds: “We must emphasise the importance of early preparation. We urge all landlords and letting professionals to stay ahead of the curve. Understanding the legal shifts now and adopting best practices in line with the expected reforms will minimise future disruption and potential legal exposure.”
Reforms under discussion included the abolition of fixed-term tenancies and Section 21 ‘no-fault’ evictions, rules around bidding, transparency and rent increases, requirements for allowing tenants’ pets in rental properties, the extension of the Decent Homes Standard to private rentals, and the introduction of an Ombudsman redress scheme. Also on the agenda were new restrictions on how much rent a landlord can ask for in advance.
Currently, there is no limit on how much can be requested upfront, with multiple months’ rent not uncommon as a condition for securing a home. Under the Bill, landlords will only be able to request one month’s rent in advance, alongside a security deposit of up to five or six weeks’ rent.
Parliamentary progress with the Bill comes just as letting agents face new requirements and potentially stiff penalties under rules around Anti Money Laundering. Agents must now screen all potential tenants, landlords and other parties against a financial sanctions list once an offer has been accepted and before entering into contracts or accepting payments.
If a match is found or suspected, the agent is legally required to report it to the Office of Financial Sanctions Implementation irrespective of the value of the rental agreement. Non-compliance can result in fines or, for serious breaches, up to seven years in prison.
The seminar concluded with a question-and-answer session, enabling attendees to put their most pressing concerns to the Ellis Jones panel.
Flynn concludes: “Many landlords are understandably concerned about the abolition of Section 21 and the future of possession rights. While the Bill aims to protect tenants, it’s essential that landlords understand how they can still navigate the legal framework to maintain control over their properties, legally and fairly. It’s certainly the biggest shake-up in this area of landlord and tenant law for more than 30 years.”
Ellis Jones plans to host further seminars as the Bill moves closer to implementation after the summer.
This article is taken from Landlord Today