1. Renters’ Rights Bill: Major reforms ahead
The Renters’ Rights Bill is set to overhaul the private rented sector in England. Key provisions include:
- Abolition of Section 21 evictions: Landlords will no longer be able to evict tenants without providing a reason.
- Introduction of open-ended tenancies: Fixed-term tenancies will be replaced with periodic contracts, offering tenants greater stability.
- Enhanced rent increase controls: Landlords will face stricter regulations on how and when they can increase rent.
- New grounds for eviction: Specific, justified reasons will be required for eviction, such as the landlord needing the property for personal use.
- Mandatory pet policies: Tenants will have the right to request pets, and landlords must provide a valid reason if they refuse.
- Decent Homes Standard enforcement: Private rented homes must meet minimum quality standards, including adequate heating and ventilation.
These changes are expected to be implemented by late summer 2025.
2. Right to Rent checks: Updated guidance
As of February 12, 2025, landlords must adhere to the latest Right to Rent guidelines:
- Document verification: Acceptable documents now include short and long birth certificates when presented alongside a second official document.
- Online checks: For tenants with time-limited immigration status, landlords should use the Home Office online service to verify their right to rent.
- Ukrainian nationals: The Ukraine Permission Extension Scheme opened on February 4, 2025, providing updated documentation for affected tenants.
These updates aim to simplify the verification process and ensure compliance.
3. Financial sanctions reporting obligations
Starting May 14, 2025, letting agents and landlords must comply with new financial sanctions reporting requirements under the Sanctions and Anti-Money Laundering Act 2018:
- Due diligence: Conduct thorough checks to ensure tenants and buyers are not subject to financial sanctions.
- Reporting: If a potential tenant is found to be under sanctions, landlords must report this to the Office for Financial Sanctions Implementation (OFSI).
Failure to comply could result in significant penalties.
4. Leasehold Right to Manage reforms
Effective March 3, 2025, leaseholders have increased rights to manage their properties:
- Non-residential limit: The threshold for non-residential usage in a building has increased from 25% to 50%, allowing more leaseholders to exercise their right to manage.
- Cost limitations: New regulations limit the costs leaseholders can be made liable for during the right to manage process.
These reforms aim to empower leaseholders and reduce costs associated with property management.
5. Upcoming EPC consultation
The Department for Energy Security and Net Zero is set to consult on raising the minimum Energy Performance Certificate (EPC) standards for rental properties
- Proposed changes: Discussions will focus on increasing the minimum EPC rating for rental properties, potentially affecting landlords' obligations.
- Consultation timeline: Details of the consultation process and potential implementation dates will be announced in the coming months.
Landlords should stay informed about these developments to ensure compliance.
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