Renters Rights

There are new significant responsibilities for landlords of buy-to-lets and a significant reduction in rights for landlords.

Firstly, this isn’t the law yet, but we are expecting it to be the law before the end of 2025.

Previously, household tenancies would have been assured shorthold tenancies (ASTs), but the new law removes the ability to terminate a tenancy for no fault so removes the length of the tenancy (they now run from month to month until notice is served by the tenant or the landlord). If landlords want to evict a tenant they will have to specify set grounds or reasons. To end the tenancy a tenant only needs to give 2 months’ notice, which can be given even at the very beginning of the tenancy.

The set grounds can be quite technical so it may be that advice will be needed before any notice to terminate is sent to the tenant.

There are new rules on rent and advertising the tenancies. Every tenancy must be advertised with its rent. Landlords cannot accept any figure over that amount. The lettings industry believes this is likely to result in advertised tenancies being withdrawn and then marketed once the letting agents have a better idea of the best rent they are likely to achieve.

Landlords can only demand payment of one month’s rent at a time. In addition, landlords cannot demand payment of rent before the tenancy actually starts.

Can landlords increase the rent? Yes, but only with a minimum of two months’ notice and only by notice given on a prescribed statutory form. Anything in the tenancy agreement to the contrary will be void. The tenant can apply to the First Tier Property Tribunal within that two month period on the basis that the proposed rent is above market level. There is a strong incentive for every tenant to apply to the First Tier Property Tribunal because the maximum rent increase is as specified in the notice and the increase only takes effect from the next rent payment date after the Tribunal makes its decision.

There will be a national landlord register – it is hoped that letting agents will be able to register their landlord clients on their behalf. There will also be a redress scheme that landlords must join. The fees for the register and the redress scheme are not yet known.

Standards of repair for landlords are also being tightened together with an obligation to deal with disrepairs that could affect health within a set time period.

There are some temporary carve outs of the ability for landlords to discriminate against tenants on benefits but going forward landlords will not be able to discriminate against tenants with children or tenants on benefits (if for example the house was too small for additional children to live then that would be an acceptable reason to discriminate, and if a landlord assessed a tenant as having insufficient income to pay the rent then that would also be an acceptable reason).

A landlord can advertise no pets, or turn a tenant down for having a pet but once in the house, all tenants can apply for consent to a pet and a landlord may not unreasonably refuse consent. If consent is granted, and the landlord’s insurer increases its premium as a result, the landlord can pass on this extra cost to the tenant.

Will this apply to current tenancies or only new tenancies? It will apply to all tenancies. There are some transition provisions where notices to terminate have already been served but please contact us for more details about that. There’s also an expansion of a tenant’s right to recover rent paid from the current 12 month limit to 24 months.

There is currently uncertainty about some aspects of these changes, but it is clear significant change is on its way. Now would be a very good time for landlords to assess the quality of their tenants and deal with difficult tenants now before things become very much harder.

Our expert team are here to help with landlord matters, whether it’s an issue with your landlord or you as the landlord.

Contact a member of our team today on 0800 088 6004