Rental Property Market Update

Renters Reform Bill moves to House of Lords

The long awaited Bill included over 200 amendments as it returned to the House of Commons on the 24th April. It will now move to the House of Lords for further review. 

Some of the amendments included: 

Establishing an initial minimum tenancy - In effect this will create a default fixed-term of six months in all contracts, mirroring a standard break clause in many existing contracts. The original version of the Bill would have allowed tenants to end a tenancy with two months' notice at any point.

Broadening student possession grounds - A mandatory possession ground to allow landlords to evict students living together in an HMO has already been added to the Bill, but the Government will now ensure this applies to any property that is let to students - as long as landlords write their intention to use the student possession ground into the tenancy agreement.

Undertake a review of council licensing schemes - To prevent duplication with the introduction of the new Property Portal, the UK Government will conduct a review of selective licensing and licensing of HMOs to reduce burdens on landlords.

Review county court possession proceedings - The Lord Chancellor will be required to publish an assessment on barriers to possession and the readiness of the courts in advance of abolishing Section 21 for existing tenancies.

*Click here for the full Propertymark article.

Whilst these measures still need to get the final seal of approval, the majority of the proposals have been well publicised for several years. These additional changes seem to be a further watering down of the initial white paper (2022) which should make them more palatable for most landlords.

Legislation changes can often be disconcerting, but landlords should be reassured to hear that they can still repossess their properties if needed (albeit the actual process for doing so will be different). Out of the notices we typically serve, the vast majority are due to sale, the landlord moving back in or rent arrears - so in theory not a huge amount should change from the landlord's perspective.

Having a professional property management agency to manage your property has never been more important. Feel free to contact Pattinson Estate Agency today to find out more!