For the last couple of years there has been endless speculation about the Rent Reform Bill and now about the Renters Rights Bill. The intention behind both bills was to make renting fairer for tenants. Ironically there have already been unintended consequences that have made things harder for tenants, in the short term at least.
The Renters Rights Bill has prompted some landlords to sell their properties, which reduces the supply of properties available to rent, which increases the rent for properties that are still available.
Some landlords have served notice on tenants they find difficult while they still can. They are anticipating the end of Section 21 notices by using it now rather than be left stuck with tenants they might struggle to evict in the future.
Landlords are being much more careful about tenants they are willing to take on. In the past, even if a tenant did not have perfect references, a landlord might still take them on, safe in the knowledge that if things didn’t work out, it was straightforward to use a Section 21 notice to end a tenancy. Now however, if a tenant can’t show a history of stable employment and a history of previous satisfied landlords, landlords won’t be willing to take a risk on them.
For many tenants therefore the Renters Rights Bill has already had a negative impact.
In the longer term however, tenants should benefit from the stability of longer tenancies, secure in the knowledge that landlords can only serve notice under certain circumstances. This will make it easier for tenants to plan ahead with major life decisions like having children. Landlords will still be able to increase rents annually with Section 13 notices but it will be easier for tenants to challenge unreasonable increases.
If a tenant is lucky enough to be renting a decent property with a professional landlord at a reasonable rent, they are going to be reluctant to give up that tenancy, so we will probably see increased examples of tenants subletting properties for higher rents, as is sometimes seen with council housing, so landlords will need to be increasingly careful to check who is actually living in their properties.
Disclaimer: This is not legal advice. If you have any questions, please speak to a solicitor.
