Woodfi nes Solicitors Private rental sector


changes will be wide-ranging under new legislation


T e Government has announced plans to introduce some of the biggest changes the private rented sector has seen for years. T e legislation is still in the planning stage, but we have been given an insight into the sorts of changes that could be introduced next spring. - What? Legislative changes as a result of the ‘Fairer Private Rented Sector’ White Paper.


- When? Expected within the next six to 12 months and will apply to new tenancies fi rst before being applied retrospectively.


Rachel Eagle Woodfi nes Solicitors


- How? Designed to level the playing fi eld for approx- imately four million tenants giving them more secu- rity and stability. New laws, processes and systems will be introduced, although the balance between tenants’ power and landlords’ rights is tricky


Expected changes to tenancies include: - All tenancy agreements must be in writing. - No fi xed-term tenancies (i.e. six or 12 months), and all tenancies will be periodic.


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All tenants are to be able to give two months’ notice that they are leaving at any point in the tenancy.


- No automatic rent review clauses. -


Rent is reviewed no more than once per year, by two months’ notice only.


- No ban on pets, but insurance can be insisted on. - No ban on DSS or families (possibly extending to no ban on vulnerable people or prison leavers).


However, where there is demand for a property, will


the Government make taking such renters mandatory above others? T e Property Portal will be created as a single place where landlords can review their compli- ance with rules.


Decent Homes Standard T e Decent Homes Standard has applied to social


housing for many years, but the Government has resisted applying it to private renting until now. It is currently estimated that one million homes


in the private rented sector do not meet the Decent Homes Standard. Breaches will be enforced by local councils and there are expected changes to notices, and no more section 21 Notices. All section 8 Notices must be served because


of a tenant’s fault or landlord’s reasonable ground. T e deposit must be protected, but there is no


indication at present that other requirements (e.g. EPC, Gas Safety Certifi cates etc) must be proven prior to serving notice. In terms of rent arrears, the mandatory pos-


session ground for rent arrears becomes three instances of being in arrears of more than two months within a three-year period. However, rent is not classed as in arrears if it is caused by the tim- ing of welfare benefi t payments. T e notice period for rent arrears is increased to four weeks but the notice period for serious antisocial and criminal behaviour decreased.


Expected changes to the court process T ere is no proposal to introduce a new Housing Court. ‘Wide-ranging court reforms’ are expected, but details have not been set out. A paperless process is expected with cases sorted according to priority. Mediation and advice to be more widely avail-


able, and the First Tier Tribunal will hold trials relating to disrepair claims and rent increases.


The new property ombudsman - Membership will be mandatory. - Available remedies will include compensation up to £25,000, mandatory apologies, obligation to provide information and undertake remedial works.


- T eir decision will be binding – and can be en- forced through the courts.


Enforcement against landlords Councils are to be given new investigative powers and the ability to issue Civil Penalty Notices – eff ectively making it a criminal off ence which can be heard in the Magistrates’ Court. Rent Repayment Orders mean that breaches of


the Decent Homes Standard can require rent to be repaid to the tenant and the Property Ombudsman can award compensation to tenants for breaches. T ere will be restrictions on marketing prop-


erties after tenants have been served notice and a Rogue Landlord Database will be set up, and entry onto the database will be non-negotiable.


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