Yesterday, the UK government introduced the Renters' Rights Bill in Parliament.
Let’s explore some of the regulations outlined in the bill and discuss how/if the changes may affect properties under a Guaranteed Rent scheme.
Key Provisions of the Bill:
Abolition of Section 21 Evictions: This provision, which allows landlords to evict tenants without giving a reason, will be abolished. Landlords will need to provide a valid reason for eviction, such as rent arrears or breach of tenancy agreement.
Elliot Leigh are awaiting confirmation but we believe that this will not apply to landlords who rent their properties to local authorities under an approved guaranteed rent scheme. This is because section 21 notices are not used to give notice to social housing tenants on license.
End of Blanket Bans: Landlords will no longer be able to blanket ban tenants in receipt of benefits or those with children.
This will not affect Elliot Leigh as our properties are generally rented to families with children. We agree that this form of discrimination should be abolished to allow more families in need to have a home.
Extended Awaab's Law: The government will extend Awaab's Law, which was introduced to improve housing standards in social housing, to the private rented sector. This means that tenants can challenge dangerous conditions in their rented properties.
Elliot Leigh only provide properties for social housing, therefore this law already applies to us. With regular property inspections and an in-house maintenance team, Elliot Leigh have the resources to stay on top of property conditions and have been doing so for over 20 years.
Rent Control Measures: The Bill includes measures to limit rent increases, including a ban on mid-tenancy rent rises.
This does not apply to houses under our Guaranteed Rent scheme as a landlord enters into a lease agreement directly with Elliot Leigh (and not the tenant).
Improved Standards: The Decent Homes Standard will be applied to all rented properties, ensuring that they meet a minimum standard of quality.
Majority of the properties Elliot Leigh let under the scheme already meet this standard. We believe no tenant should ever have to live in a sub-standard condition, which is why we are selective with the properties we take on board.
Protection from Bidding Wars: The government will introduce measures to prevent bidding wars and ensure that tenants are not forced to pay excessive rents.
This does not apply to properties under the Elliot Leigh Guaranteed Rent scheme, as rent payments are agreed and fixed between Elliot Leigh and the landlord.
The Renters' Rights Bill is expected to have a major impact on the private rented sector. If you are a landlord in the private rental sector, it’s important to stay informed and be prepared for how this legislation may impact you as a landlord.
Being a landlord in 2024 has been the most challenging. We offer a solution to landlords of taking the stress away, mainly because we will fully manage your property without any fees, make it fully compliant, pay your rent on time, no stress of court delays and more importantly not having an empty property as we cover voids. If you’d like to book in a call for an appraisal on your property, call 0208 983 4444.
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