What does the RRB mean for landlords?

The new law will mean landlords and tenants will no longer agree on fixed tenancy periods. Instead, tenancies will operate on a month-to-month basis, continuing until the tenant gives notice or the landlord meets specific grounds for repossession. These tenancies will be called assured periodic tenancies.

What security will tenants have?

In the first 12 months of a new tenancy, landlords will not be allowed to move back into the property or attempt to sell it, unless the sale is to another landlord who will take over the tenancy. This provides tenants with a 12-month protection period. However, tenants can still serve notice during this time. Tenants must provide two months' notice to end the tenancy, which must align with the rent payment date.

Will the new law apply to both new and existing tenancies at the same time?

The new law is designed to apply to both new and existing tenancies from the same date, with no phase-in period. However, there will likely be a transition period before the law takes effect to give landlords and agents time to prepare for the new rules.

How will I regain possession of my property under the new law?

The new law will remove section 21 notices (no-fault evictions) to provide more security for tenants. Instead, landlords will need to issue a section 8 notice, specifying one of the grounds for repossession. These grounds include the landlord (or their family) needing to move in, or the property being put up for sale, as well as other reasons like unpaid rent or antisocial behaviour.

Can I increase the rent?

Yes, landlords can propose an annual rent increase by serving a section 13 notice to the tenant. The proposed increase must be in line with local market rates, and evidence may need to be provided if required. If the tenant agrees to the increase, it will take effect from the next rent due date after the anniversary. If the tenant believes the increase is above market rate, they can challenge it by applying to the First Tier Tribunal, but they must do this before the new rent starts.

Rental bidding

Landlords and agents will be required to display an asking rent for the property. They will not be allowed to accept or encourage bids above the stated rent.

What happens if landlords or agents don’t comply with the new law?

Landlords or agents who fail to comply will face fines. These fines will be higher, with penalties of up to £7,000 for minor or initial violations, and up to £40,000 for repeat offenses. Local authorities will also have stronger enforcement powers.

This is our understanding of the current bill, though amendments may occur as it progresses through the legal process. If you're unsure about how the changes may impact you, it's wise to seek professional advice.