A few weeks ago, the Government published a 90 page document detailing some of the biggest changes to the Private Rental Sector in a generation. In brief the biggest changes centred around:

• Abolishment of Assured Shorthold Tenancies
• Changes to Possession – No ‘no fault evictions’
• Tenants having pets
• A new Landlord Redress Scheme

So what does this mean? Essentially the biggest change involves Fixed Terms tenancies (know as an Assured Shorthold Tenancy), and more so the fact that these will be no more from the ‘commencement date’ of the Bill. All tenancies will be Assured Tenancies, similar to what we know as a Periodic tenancy (a rolling agreement that a fixed term defaults to once an initial fixed term expires). This change in part will allow tenants to move out of poor quality properties without being tied in to a fixed term. Tenants generally want stability as much as Landlords, so good properties and good landlords, should not see an adverse impact.

Some panic from landlords hearing the ‘headlines’ has been focused around no fault evictions and raising concerns that they will not be able to regain possession of their property. Currently a Landlord can serve a Section 21 notice on a tenant (at the end of a fixed term) to regain possession, without providing a reason as to why. Let’s think about why a landlord may wish to serve notice on a tenant…… They wish to sell. They need to move themselves or a close family member into the property or, the tenant has serious rent arrears. Landlords will still be able to regain possession for these reasons as what will be ‘grounds’. There will be a requirement within the Legislation of proof of the ground being used (it has not been a announced what this will look like yet) and where a Landlord is selling or moving back in, the property cannot be remarketed to let for 3 months following the expiration of the ground notice.

The majority of questions I have been asked by Landlords surround the above 2 points. However, there will also be some changes within the bill relating to pets and also a new landlord Redress Scheme.

Although the Bill has been passed (these changes are coming), there has not been an announcement on when these changes will be active from. It is likely that the first phase will take place from a ‘commencement date’ and then after a period of time we will have a ‘extended application date’ to allow time for adjustment during these times.

I’m sure that this will raise further questions and therefore I would invite any landlords to contact me by phone or email if they would like any further information on the Bill.

Please feel free to contact me on 01903 958770 or email dan@jamesandjamesea.co.uk