Legal Updates: Recent Changes Affecting Landlords and Tenants

The landscape of renting in the UK is undergoing significant changes, with new legislation and policy updates impacting both landlords and tenants.

Here's a breakdown of the key developments you need to be aware of in 2024:

Renters Reform Bill: Still on the Horizon

The Renters Reform Bill, proposing a major shakeup of the private rented sector in England, remains in the pipeline.

While originally anticipated for 2024, its implementation hinges on establishing a robust court process and stronger possession grounds for landlords before the abolition of Section 21 "no fault" evictions.

Here are some of the proposed changes under the bill:

• End of Section 21: Landlords will no longer be able to evict tenants without a valid reason.

• Periodic Tenancies Become the Norm: Fixed-term contracts may become a thing of the past, with periodic tenancies offering tenants greater security of tenure.

• Increased Notice for Rent Increases: Landlords may need to provide tenants with two months' notice before raising rent, allowing for better budgeting and exploring options.

• Pet Ownership Rights: Tenants will have the right to request keeping pets in their rented property, with landlords only able to refuse with reasonable justification.

Leasehold and Freehold Reform Bill: Changes for Leaseholders

The Leasehold and Freehold Reform Bill has already been enacted, bringing welcome changes for leaseholders, particularly those with long leases.

Here's what you need to know:

• Easier Lease Extensions and Freehold Purchases: The process of extending a lease or buying the freehold of a property is simplified and potentially cheaper.

• Longer Lease Terms: The standard lease extension term increases from 90 years to 990 years, offering greater security and potentially higher property values.

• Reduced Ground Rents: Ground rents under lease extensions will be reduced to zero, removing a significant financial burden for leaseholders.

Other Important Updates:

• Social Rent Increase: The maximum rent increase for social housing tenancies in 2024/25 is set at 7.7%, impacting rent payments for many tenants.

• Property Portal Launch (Planned): The government plans to launch a digital Property Portal to provide easily accessible information for both landlords and tenants on their rights and responsibilities.

Staying Informed

These are just some of the key legal updates impacting landlords and tenants in the UK.

It's crucial to stay informed about the evolving regulations, especially with the Renters Reform Bill still in progress.

Here are some resources to help you:

• Government website: Keep an eye on the official government website for updates on housing legislation: https://www.gov.uk/government/collections/renters-reform-bill

• Landlord and Tenant Law Workshops: Consider attending workshops offered by organisations like Landlord Law to gain in-depth knowledge of the latest legal landscape: https://propertyrescue.co.uk/useful-guides-articles/when-will-the-renters-reform-bill-become-law/

• Citizens Advice: For general advice on housing rights and responsibilities, Citizens Advice is a valuable resource: https://www.citizensadvice.org.uk/housing/

Remember, this is not an exhaustive list, and seeking legal advice from a qualified professional is always recommended if you have specific questions or concerns regarding your situation.

By staying informed and understanding the recent legal changes, both landlords and tenants can navigate the rental market with greater confidence and clarity.