Rental revolution comes into effect with ‘biggest changes for a generation’
Landlords across England could face a deluge of tenants handing in their notice today as a law scrapping fixed-term rental contracts comes into effect.
The Renters’ Rights Act also brings an end to no-fault evictions, meaning landlords can only boot people out of their properties with a justifiable reason such as rent being in arrears.
According to campaigners and the government, May Day marks the ‘biggest set of changes for renters in a generation’.
All fixed-term ‘assured shorthold tenancy’ contracts in England will automatically become ‘assured periodic tenancy’ contracts today, meaning the end date no longer applies.
That means all tenants will be free to leave with two months’ notice whenever they like.
Student groups on social media have been flooded with people seeking tips on telling their landlord they plan to dump their contract at the first opportunity.
Chris Norris of the National Residential Landlords Association said the changes will ‘present a real challenge to the sector’.
Ready to start your homebuying journey?
You can access completely fee-free mortgage advice with London & Country (L&C) Mortgages, a partner of Metro. Customers benefit from:
– Award winning service from the UK’s leading mortgage broker
– Expert advisors on hand 7 days a week
– Access to 1000s of mortgage deals from across the market
Unlike many mortgage brokers, L&C won’t charge you a fee for their advice.
Find out how much you could borrow online
Mortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
He said: ‘To manage the risk of void periods, landlords will need to undertake thorough referencing of prospective tenants and foster open conversations about their intentions from the outset.
‘In parts of the market where short-term occupation is more likely, including the student sector, landlords may need to factor higher turnover into their planning when agreeing new tenancies.’
Property owners will also be blocked from evicting their tenants in order to sell or move in themselves in the first year.
Housing Secretary Steve Reed told Metro: ‘People need change and change is coming.’
He highlighted the end of Section 21 no-fault evictions as a particularly important measure for renters around the country.
Reed said: ‘It’s the single biggest cause of homelessness in this country, people being kicked out of their home for no reason other than, quite often, the landlord thinks they can put the rent up for somebody else.
‘From Friday, that is illegal. You cannot be kicked out of your home for no reason anymore.’
Analysis by Shelter suggests more than 2,000 households a month will be protected from the threat of homelessness following the demise of Section 21.
Chief executive Sarah Elliott said: ‘Today marks a quantum leap forward in the fight for renters’ rights.
‘After decades of campaigning, the Act has dragged our archaic rental system into the 21st century.’
Meanwhile, the Renters’ Rights Act also bars landlords from hiking up their tenants’ rent more than once a year.
Reed said: ‘People’s rent goes up at the beginning of the year, they budget for that.
‘People only get a pay rise generally once a year, so then if the rent goes up a few months later, people find they can’t afford it, that now is no longer allowed.’
Other measures coming into effect today include:
- A ban on landlords discriminating against families on benefits
- Requests for a pet must be considered by the landlord
- An end to rental bidding, with landlords banned from accepting offers above the advertised rent
- Tenants can no longer be asked for more than one month’s rent in advance when signing a tenancy agreement
However, other measures in the law will take more time to come into effect.
Awaab’s Law, named after two-year-old Awaab Ishak who died in 2020 after prolonged exposure to mould in his home, has been in effect for the social rented sector since October last year.
But the government has still not set a date for the measure – which introduces mandatory timeframes for landlords to fix emergency hazards – to be extended to the private rented sector.
Reed said: ‘We’re still working with the sector on how and when to bring this in, but we will bring it in because we know how important it is.
‘It’s part of a wider set of reforms we’re bringing in across the rental sector to give people the security of a safe and secure and affordable roof over their head.’
Get in touch with our news team by emailing us at webnews@metro.co.uk.
For more stories like this, check our news page.