Renter's Rights Act comes into force

The Renter's Rights Act comes into effect today (1st May).

Summary

The bill, which was introduced to Parliament on 11th September 2024, aims to give greater rights and protections to renters and landlords.

The key changes include the abolition of Section 21 ‘no fault evictions’, introducing the Decent Homes Standard to the private rental sector, banning rental bidding wars and preventing unfair rent increases.

The Renters’ Rights Act will also ban landlords and agents from refusing tenants because they have children or receive benefits, as well as strengthening local authority enforcement and bringing Awaab’s Law into the PRS, requiring landlords to fix damp and mould promptly.

The bill has been met with great uncertainty within the sector with recent Paragon Bank research demonstrating that nearly two thirds of landlords are still uncertain about how the Renters Rights Act will impact them.

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Renter's Rights Act comes into force

The Renter's Rights Act comes into effect today (1st May).
1 month ago

RRA set to hit Sheffield the hardest

Inventory Base analysed which areas have the most PRS dwellings and which, therefore, will incur the most impact from the regulation.

Sheffield City Centre, or S1, has the highest concentration of PRS homes in England with these accounting for 77% of all dwellings.

London’s EC3 ranks second with 73%, and Leeds’ city centre LS1 and LS2 postcodes close behind with 71% and 68%, respectively.

In total, 39 postcode districts across England have PRS concentrations of 50% or more, marking them as the areas where the effects of reform will be most immediate and most visible.

Sián Hemming-Metcalfe, operations director at Inventory Base, said these markets will not experience Renters Rights Act reforms gradually but “all at once”.

“Meeting tighter safety expectations, maintaining consistent property standards, and evidencing that work properly (at volume) is where most operators will feel the strain,” said Sián.

“This is where operational cracks tend to show.

“Manual processes, inconsistent reporting, and poor audit trails don’t hold up under this level of scrutiny.”

1 month ago

Biggest PRS shakeup in 40 years

Ben Beadle, chief executive at the NRLA: “Today marks the biggest shakeup to the private rented sector for almost 40 years.

“With 4.7 million households across England in the private rented sector, it is vital that the changes work for landlords as well as tenants.

“The key measures of success for these reforms are threefold:

• whether responsible landlords have the confidence to continue providing the homes to rent so many tenants desperately need
• whether they root out for good the minority of rogue and criminal landlords who undermine the reputation of the responsible majority
• whether the courts process legitimate possession claims, such as those related to rent arrears and anti-social behaviour, fairly and quickly enough to give landlords the confidence to invest in those homes

“On all three tests, the jury is very firmly out. We will be monitoring developments closely to assess whether the Act is working as intended in practice.

“While today is undoubtedly a significant moment, other important parts of the Act, including the planned Decent Homes Standard, the private rented sector Ombudsman and the PRS landlord database, have yet to be implemented.

“It is therefore vital that landlords continue to keep on top of how these remaining reforms will be rolled out to ensure they remain compliant with their legal obligations.

“The NRLA will continue to provide landlords with all the resources they need to prepare and plan for all these changes as early and effectively as possible, as well as hold the government’s feet to the fire in ensuring that, when implemented, they command the confidence of responsible landlords.”
 

1 month ago

'More professional, sustainable PRS'

Daryl Norkett, director of real estate proposition at Shawbrook: “The debate around the Renters’ Rights Act is too often framed as landlords versus tenants.

"In reality, most landlord-tenant relationships are already working well. 

"Today marks a shift in how rental property is managed and simply reinforces what is already a more professional, sustainable private rented sector. 

"While headline changes like the abolition of Section 21 have dominated attention, the implications for landlords are more nuanced. 

"For landlords, the priority now is clear: get documentation in order, seek guidance where needed and stay close to further changes ahead of October.”

Summary

The bill, which was introduced to Parliament on 11th September 2024, aims to give greater rights and protections to renters and landlords.

The key changes include the abolition of Section 21 ‘no fault evictions’, introducing the Decent Homes Standard to the private rental sector, banning rental bidding wars and preventing unfair rent increases.

The Renters’ Rights Act will also ban landlords and agents from refusing tenants because they have children or receive benefits, as well as strengthening local authority enforcement and bringing Awaab’s Law into the PRS, requiring landlords to fix damp and mould promptly.

The bill has been met with great uncertainty within the sector with recent Paragon Bank research demonstrating that nearly two thirds of landlords are still uncertain about how the Renters Rights Act will impact them.

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