A solicitor cautions that the Renters Reform Bill could negatively impact numerous landlords across the UK, adding to a growing list of legal experts identifying the legislation’s risks for buy-to-let investors.
The Bill, currently under scrutiny in Parliament and anticipated to be enacted next year, will introduce several provisions. However, its main purpose is to fulfil activist calls to eliminate the Section 21 notice.
Kristy Ainge, a solicitor-advocate on the litigation team at Brindley Twist Tafft & James, elaborates, “The principal shift is that landlords will no longer have the right to ask tenants to vacate, for instance, if they wish to accommodate a friend in their property, or if they simply have personal disagreements with the tenants.”
“The only instances where landlords can displace ‘no-fault’ tenants are if they themselves want to occupy the property, house an immediate family member, or sell the property. Yet, these won’t be hasty decisions as, for instance, landlords cannot serve notice within the initial six months of the tenancy if they want to move in themselves.”
The amendments will also permit tenancies to continue on a month-by-month basis. Consequently, landlords who previously had the right to six or twelve-month tenancies will now see tenancies become periodic, contingent on the rent payment schedule. This provides tenants with greater flexibility but diminishes the certainty for landlords who previously had the assurance of a tenant for a minimum period of 6 or 12 months.
The proposed changes will also extend more rights to tenants wishing to accommodate pets. Presently, legislation permits a universal prohibition on pets.
Many landlords enforce this restriction due to concerns about possible property damage inflicted by the animals. Under forthcoming proposals, still up for debate, a tenant could request to house a pet, and the landlord would not have the right to decline without just cause. However, they might request their tenant to ensure pet and home insurance to cover potential damages.
Tenants who default on rent payments or are responsible for antisocial conduct are not shielded by these legislations and can still be evicted by their landlords through the standard Section 8 notice procedure.
Ainge further comments, “The upcoming reforms are intended to provide tenants with greater security but limit the landlords’ control over their properties. Anticipations suggest some exceptions, such as private student accommodation, though this is yet to be affirmed.”
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