A new law designed to enhance renters’ rights in England was officially approved on Monday, marking what is considered the most significant reform to the rental sector in over three decades. The government plans to provide details regarding the implementation timeline for these changes in the coming weeks. Approximately 20% of UK households rent privately, indicating that this law will have widespread implications.
Under the new legislation, rental agreements will shift to a “periodic” or rolling format, allowing tenants to remain in a property indefinitely if they choose. Tenants can now give two months’ notice if they decide to leave, rather than being locked into a fixed-term contract. The government suggests this change aims to enhance tenant security. In terms of tenant evictions, landlords will not be able to evict tenants without cause within the first year of tenancy and must provide four months’ notice thereafter. However, landlords retain the ability to evict tenants for specific reasons, such as property damage or unpaid rent.
Additionally, the law prohibits landlords from engaging in “bidding wars” where potential tenants compete to pay above the asking price. Average monthly private rents in the UK have recently seen a 5.5% increase, reaching £1,354, according to provisional estimates.
Other provisions include limitations on rent increases, permitting landlords to raise rent only once per year after providing two months’ notice. The existing regulations around security deposits remain in place, capping them at five weeks’ rent for lower-cost properties and six weeks for higher-cost ones.
The legislation includes provisions aimed at preventing discrimination against tenants receiving benefits or having children and requires landlords to consider pet requests without unreasonable refusal. It is yet to be determined how landlords and tenants will adapt to these regulatory changes.
Source: https://www.bbc.com/news/articles/cqjwqp72y7ro?at_medium=RSS&at_campaign=rss