Renters’ Rights Act – Key Changes for Landlords (Part 1)

Renters' Rights Act - Key Changes for Landlords (Part 1)

The Renters’ Rights Act has now received Royal Assent, signalling one of the biggest overhauls of the private rented sector in decades. In this article, we outline what landlords need to know about when the new law will take effect, which types of tenancy it covers, and how the upcoming changes will impact the way […]

Information in this article is based on guidance from the National Residential Landlords Association (NRLA).

When will the Act become law?

The Renters’ Rights Act has received Royal Assent and is now law. However, it will not apply to your tenancies until the ‘commencement date’ which will be announced by the Government after Royal Assent.

The Act is also likely to commence in stages, with tenancy reform, the removal of Section 21 and the changes to possession grounds coming earlier than the new landlord database or the Decent Homes Standard.

We have been making the case to Government that the sector needs a reasonable amount of notice to make sure landlords and agents can prepare properly. We are calling for a minimum of six months between Royal Assent and the removal of Section 21 to enable the sector to prepare.

Will the Act affect non-Housing Act tenancies?

The Act primarily concerns assured tenancies, and once implemented, will change the way in which assured tenancies (including assured shorthold tenancies or ASTs) are dealt with.

Other types of tenancy, such as non-Housing Act 1988 tenancies or common law tenancies will not be affected by the majority of the proposals contained in the Act.

Will I have to issue a new tenancy agreement?

Once in force, you will have to provide an accurate written statement of the tenancy agreement before a tenancy is agreed. The exact contents of this written statement are not yet known as further regulation is required.

For existing tenancies (those agreed before implementation) which are in writing already, you will only need to provide some information in writing, not a completely new tenancy agreement. This must happen within one month of the commencement date.

The Government will provide the leaflet or brochure for you to give to your tenants. We will update members when this is released.

Are fixed term tenancies being abolished?

Yes, fixed term assured and assured shorthold tenancies (ASTs) will be abolished when the Act comes into force. Once implemented, almost all tenancies in England will be periodic (open-ended) assured tenancies, which will continue until either party gives notice.

How are student landlords affected?

The abolition of fixed terms means that student landlords will no longer be able to offer assured shorthold tenancies with set end dates ahead of the new academic year. Tenancies will instead be open-ended periodic tenancies normally.

In order to regain possession ahead of the new academic year, student landlords will be able to utilise the new student possession ground, Ground 4A, provided prior notice has been given, it is a house in multiple occupation (HMO) and all the tenants were full time students or were expected to become full time students before the tenancy was agreed.

Existing landlords will have to notify the tenants within one month of commencement that they intend to make use of Ground 4A.

What restrictions are there on Ground 4A (the student ground)?

For new tenancies, the student ground for possession (4A) would only be available where the following conditions are met:

A landlord has let a property solely to full-time students and intends to re-let to full-time students the following academic year.
The property is a House in Multiple Occupation (HMO) or is in an HMO.
The tenancy was not agreed more than six months prior to the move-in date*.

The landlord must give the tenants prior notice that they may seek possession under Ground 4A. If all conditions are met, they can then recover possession by giving four months’ notice, to expire between 1 June and 30 September.

*This applies to new tenancies only. If your tenancy was agreed prior to the commencement of the Renters’ Rights Act, you may still use Ground 4a even if you agreed the tenancy more than six months in advance of the move-in date.

Can I still serve a Section 21 notice now? How will I gain possession of my property?

Can I still serve a Section 21 notice now?

Once the Act is in force, you will no longer be able to serve a Section 21 notice. You’ll need to use the grounds-based route to possession (Section 8) instead.

However, you can still serve a Section 21 notice before the Act comes into force. You will also have a three-month window from commencement of the Bill in which to apply to court for possession. If you do not obtain a possession order within this window, the Section 21 notice will expire and you will need to re-serve notice under Section 8.

With no Section 21, how will I gain possession of my property?

Once the Act commences, landlords seeking possession of their property will need to use Section 8 as the route to possession.

This route is ground based, meaning landlords will need to provide a reason as to why they intend to gain possession. You can read about the Section 8 process here.

Renters’ Rights Act – Key Changes for Landlords (Part 1)