Only one in six landlords ‘fully prepared’ for Renters’ Rights Bill
Only one in six landlords (16%) say they are ‘fully prepared’ for the implementation of the controversial Renters Rights Bill in the coming weeks.
The remaining 84% have either not heard of it at all (7%), are aware of it but don’t know what it means for them (29%), have heard of it but know very little about it (16%) or have a general understanding but still have questions (32%). The survey of 1,001 landlords across England was commissioned by leading estate and lettings agent Cavendish.
The Renters’ Rights Bill aims to overhaul the private rented sector in England, granting tenants greater security and rights, while also imposing new obligations on landlords.
Key changes include banning Section 21 evictions, replacing fixed-term tenancies with periodic tenancies, and introducing new rent increase regulations and procedures.
Under the Bill, landlords will face higher fines with civil penalties for non-compliance, starting at £7,000 and rising to a maximum civil penalty of up to £40,000.
The Government says the Bill will give tenants more power to challenge excessive rent increases. Landlords will only be allowed to raise rent once a year and must provide tenants with two months’ formal notice using a Section 13 notice.
If tenants believe the proposed increase is above the market rate, they can challenge it at the First-tier Tribunal, which will decide the appropriate market rent.
There are various other elements contained in the legislation that could catch out a landlord including a clampdown on unreasonably declining the right of a tenant to have a pet in a rental property.
The Bill is due to return to the House of Commons and House of Lords next week (September 8) for final amendments and approval, after which it will receive Royal Assent which turns it into law.
David Adams, Managing Director of Cavendish and author of The Landlord’s Playbook, said: “There is a huge amount at stake for landlords with the imminent introduction of the Renters Rights Bill.
“The changes being introduced are some of the biggest impacting landlords for decades and the potential cost of falling foul of the new legislation in terms of reputation and financial penalties is enormous.
“While we have been supporting landlords directly and via regular webinars for some time, it is clear from our survey that the vast majority of landlords across England do not feel fully prepared for what is set to become law in a matter of weeks.
“Being fully prepared is the only way forward if landlords are serious about protecting and growing their rental portfolios.”
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