Lettings: The Renters Reform Bill – Part 2: The Ending of Fixed Term Tenancies by Lettings Director Helen Jolly

This is the second in a series of blogs about the changes to the renters’ reform bill.

The Ending of Fixed Term Tenancies

The most used tenancy is an assured shorthold tenancy for six or 12 months. The bill will now end fixed-term tenancies and move to periodic which will have no end date.

This is designed to offer more flexibility to tenants to move if their circumstances change, e.g. a new job location, but will also give them the ability to stay in their homes until they are given notice.

Please see by Renters Reform Part One that covers the abolition of section 21 notices and the more common grounds that landlord will be able to use to gain possession and timescales for the notice under a section 8 notice.

Tenants Notice Period

This has been increased to a minimum of two months. The end date will have to align with the rental and the end of a rent period.

No change has been mentioned as to the access rights of landlords, so we will need to wait to see what is proposed in the new tenancies that will be used regarding access for inspections, viewings and repairs and maintenance.

Rent Increases

Landlords will still be able to review rents. All increases will be able to be implemented by use of a revised Section 13 notice, which will be published by the Government. The proposal is that the notice period for a rent increase will need to be two not one month.

Rent increases will be allowed annually, as today, and once served a landlord will not need to take any further action unless the Tenant wishes to dispute the rise. They should also inform their landlord and must refer the matter to the Tribunal prior to the start of the proposed new rent.

The tenant will be able to dispute the increase if they think it’s above market level. The tribunal will review and decide if the increase is unreasonable and if they agree with the landlord, impose the new rent. They will no longer increase the rent above that they deem is a reasonable market level. They may inspect the property prior to deciding and look at the state of repair and condition before deciding.

Where landlords and tenants communicate well, the above reforms should not cause too much difficulty.  I would always advise regular inspections to check the state and condition of a property and this also allows time to chat with your tenant, and discuss any difficulties they may be having. The more dialogue, the easier it is to manage the letting.

If you don’t live near your property(s), have little time or are not happy to communicate with your tenant directly, then I would suggest speaking with your local letting agent to see if they can help.

We at Emsleys Lettings pride ourselves on winning awards for our service quality to both landlords and tenants.