Category: Uncategorized

The Renters Rights Bill has been agreed by both Houses and is now awaiting Royal Assent.

“Today is a momentous day, because, subject to agreement from this House, the Renters’ Rights Bill will have completed all its stages and will therefore shortly become law. – Matthew Pennycook – Minister of State for Housing and Planning.”

The Government are expected to announce plans for implementation shortly, with the expectation that these will commence in 2026. These include:

For tenants
Abolition of “no-fault” evictions: Section 21 notices will be abolished, so landlords can no longer evict tenants without a reason.

Shift to periodic tenancies: Fixed-term tenancies will be replaced by open-ended periodic (rolling) tenancies.

Protection against discrimination: Landlords will be legally prohibited from imposing blanket bans on renting to tenants who are receiving benefits or have children.

Right to request pets: Tenants will have a statutory right to request a pet, which a landlord cannot unreasonably refuse. Landlords can require tenants to have insurance to cover potential pet damage.

Ban on rental bidding wars: Landlords and agents will be banned from encouraging or accepting rental offers above the advertised price.

Landlord Ombudsman: A new Private Rented Sector Landlord Ombudsman will be introduced to provide a fair, impartial resolution service for disputes.

For landlords
New eviction process: Section 21 to be abolished. Landlords must use an expanded and strengthened set of Section 8 grounds to evict a tenant under specific reasons.

Legitimate grounds for possession: New mandatory grounds for possession will allow landlords to end a tenancy if they want to sell the property or move into it themselves. These grounds cannot be used within the first 12 months of the tenancy.

Private Rented Sector Database: A new digital database will require all landlords to register their properties, increasing accountability and enforcement by local councils.

Housing Standard: Housing standards such as those in “Awaab’s Law” will be extended to the private rented sector, requiring properties to meet minimum safety and quality standards.

The Government has launched a 12-week consultation with proposals to implement Part 4 of the Leasehold and Freehold Reform Act 2024.

Part 1 of the Act has been implemented, with Parts 2 and 3 being partially implemented pending secondary legislation and further consultation.

Part 4 includes:
– Standardising Service Charge Documentation and Admin Charges
– Requiring Annual Reports for Buildings
– Ensuring Provision of Insurance Information (to supplement FCA Rules)
– Reforming the Major Works (Section 20) Process
– Re-balancing Legal Cost Rules
– Ensuring Reserve Funds and Protecting Leaseholder Funds
– Requiring Mandatory Professional Qualifications for Managing Agents
– Implementing Stronger Protections for Fixed Charges & Estate Rentcharges

We would strongly advise those in the sector to read the consultation and provide relevant feedback.

The consultation may be found at:
https://lnkd.in/eGk8jjPD

From 31st January 2025, owners of leasehold homes will no longer be required to wait for two years before being able to extend their lease.

This change being one of the first of many proposed legislative reforms being introduced via the Leasehold and Freehold Reform Act 2024 (“LFRA”), intended to give leaseholders better control over their investments and homes.

The Impact Assessment for the LFRA assumes “that the majority of the reforms will commence in 2025/26. However, our redress reform may not be operational until 2028, due to the need to implement the necessary secondary legislation”.

We welcome sensible and proportionate legislative progress and look forward to continuing to adapt and support these changes as they come into force.

We are very pleased to have received formal acceptance of a Right to Manage application which will result in a saving of over £12,500 relating solely to insurance premium costs.

These savings will be used to improve the building, contribute toward a freehold purchase fund (which we identified under the lease and have since commenced), reduce service charges or a combination of all three.

Whilst uncertainty is the reality for many leaseholders, this latest Right To Manage acquisition will allow our client to fairly administer their development whilst leaseholder reform takes shape.