The exact timescales remain unclear, but unlike recent legislative changes, the implementation will not be staggered. The new rules will apply simultaneously to both new lettings and existing tenancies, and it is almost certain they will take effect this year.
Key Features:
End of fixed term tenancies, moving to rolling periodic tenancies.
All new residential tenancies, as well as existing assured shorthold tenancies, will transition to periodic tenancies with no fixed initial term. Tenants will be required to provide two months’ notice to end their tenancy, but they can do so at any time after the tenancy begins.
End of Section 21 notices
Landlords will no longer be able to serve notice on a tenant without a valid reason. Section 8 notices are being reinforced and expanded to cover situations such as selling the property, the landlord or a family member moving in, rent arrears, requiring the property for a staff member, and tenancy breaches. However, in many cases, the notice periods are being extended.
Rent reviews
Rents can be reviewed annually using a Section 13 notice, based on the open market value, with tenants receiving two months’ notice instead of the current one month. The tenancy agreement cannot specify rent increases linked to the Retail Price Index (RPI). Tenants will continue to have the right to challenge rent levels through the First-Tier Tribunal, as they do now.
Rent in advance
Landlords can only request one month’s rent in advance, prohibiting quarterly or six-month upfront payments. The first month’s rent cannot be collected until the tenancy agreement is fully completed. However, the deposit can still be taken before the landlord signs and finalizes the agreement. At Bidwells, tenancies are typically not completed until all funds are received, so this change will alter the process for many agents.
Exclusions
Pets and children cannot be excluded from tenancies without a valid reason, though what qualifies as a "good reason" has yet to be clearly defined. Tenants receiving benefits also cannot be excluded, but landlords can still conduct referencing checks to assess whether they meet affordability criteria.
Advertising price
You will not be able to accept an offer of rent over the advertised price, aimed at preventing bidding wars.
Private Rented Sector Landlord’s database
A new property portal will be established, requiring landlords to register to demonstrate compliance.
More clarity and information on timescales will be released in due course. You can find more information on the Government's website here.
