There is widespread political support for this once in a generation shake-up which introduces fundamental changes, including:
- Scrapping fixed-term tenancies – All rental contracts will become rolling, meaning tenants will have greater freedom of movement on a single system of periodic tenancies.
- Abolition of Section 21 – By strengthening Section 8 notices, Landlords will be able to reclaim their properties under specific legal grounds.
- Capping rent increases – Landlords will only be allowed to raise rent once per year, and any increases must align with market rates. Tenants will also have the right to challenge rent hikes through an independent tribunal.
However, the devil is always in the detail. One of the wrinkles in the Renters’ Rights Bill could create challenges for landlords looking to sell. Under the proposed rules, if a landlord attempts to sell a property but is unable to find a buyer, they won’t be able to simply put it back on the rental market with a new tenant for a fixed period of time to be agreed. This restriction could leave properties sitting empty, with hefty financial implications for landlords and reducing available rental homes at a time when demand is high.
While these changes may seem daunting and create uncertainty in the short term, they will ultimately give renters greater security and flexibility, making it easier to put down roots and plan for the future. Cambridge, for example, remains a highly desirable place to live, with strong rental demand from families and professionals looking to settle and those landlords who offer well-maintained homes and good tenant relationships, will continue to do well under the new rules.
As these reforms take shape, landlords should take the new tax year as an opportunity to prepare. Here are some essential steps to consider:
- Review Your Tenancy Agreements – As fixed-term agreements are set to be replaced with rolling contracts, consider how this might impact your rental strategy.
- Stay Informed – The bill is still being debated, so keeping up with the latest developments will help you make proactive decisions rather than reacting last-minute.
- Consider Professional Support – Whether it’s legal advice on eviction processes or financial planning for tax efficiency, seeking expert guidance can help you navigate these changes smoothly.
