The Renters’ Rights Bill is currently proceeding through the Houses of Parliament and is predicted to be enacted during the second quarter of 2025. Whilst we await the final detail, it is likely that the Bill will be passed as it stands or perhaps with minor amendments following the final stages of scrutiny and review.
A principal premise of this proposed legislation is the abolition of fixed term tenancies. Instead, periodic tenancies will have to be created. Furthermore, to avoid a two-tier system, it is the Government’s intent that all existing Assured Shorthold fixed term tenancies will immediately convert to being periodic tenancies.
Tenants will then have greater security of tenure and be allowed to choose when they elect to move by serving two months’ notice to terminate the tenancy.
However, landlords will have the right to regain possession in the event that they wish to sell or move into their property, subject to a minimum tenancy term of one year and providing four months’ notice. Additional grounds for possession that a landlord may seek to rely on include tenant breach of obligations.
Further provisions include banning landlords from accepting rental bids beyond the marketing price and preventing landlords from receiving more than one month’s rent in advance at the commencement of the tenancy.
The proposed legislation has been expected in principle for some time with the current and previous Governments committed to reform along relatively similar lines. Ultimate clarity will be welcomed by all stakeholders within the industry. Hopefully, the wait will soon be over.
We look forward to continuing to advise and act on behalf of our considerable portfolio of landlords and attentively assisting tenants seeking to rent their ideal next home in this wonderful area.
