The Renters’ Rights Bill is quickly approaching. Landlords are running out of time to act. They need to think in weeks, not months.
We’re pushing towards the final stages of the bill rapidly and, so long as there are no major delays, the bill could be in force over the summer months.
Much of the response to this from the market has already been factored in. Many landlords are selling up ahead of the bill reaching Royal Assent. The added complexities are simply too much for some to bear.
For those who remain and opt to stick it out, there will still be challenges to overcome. The bottom line is still surprisingly strong, with rents rising, and tenant demand outstripping supply. But it’s the actual stock which may create issues for landlords.
The Renters’ Rights Bill will bring with it the “Decent Homes Standard”. This sets minimum standards that private rental homes must adhere to and is assessed through three key metrics: the state of repair of the premises; things to be provided for use by, or for the safety, security or comfort of, persons occupying the premises; and the means of keeping the premises at a suitable temperature.
Not meeting the new minimums will likely prove costly. Where landlords fall foul of these standards, or those of the wider bill, they could be hit with fines that stretch into the thousands. The number of PRS landlords who are at risk here may be higher than many expect.
According to government analysis released last month, in the two years to March 2023, an average of 14% of households in England lived in a home with no modern facilities, no effective insulation or heating, or in a state of disrepair — a “non-decent home”.
Moreover, the latest English Housing Survey covering the rental sectors revealed 21% of private rented homes were “non-decent”. This equates to just over one million homes.
There is clearly a lot of work to do, with not a lot of time to do it. Fortunately, the specialist market is there to support those landlords who still see the potential in the rental market, yet are worried about falling foul of tough new standards.
Tailored refurbishment finance can help landlords get their properties in tip-top shape within mere days, where required. This can include basic cosmetic changes, through to substantial structural tweaks.
Not to mention, funding is there to help homeowners improve their green credentials, or perhaps convert an underutilised space.
As everyone works hard to remain on the right side of the new rules, the specialist finance industry will be there to present multiple routes forward.
