THOSE Renters' Rights Bill amendments in full

An updated list of proposed amendments to the Renters' Right Bill was published today, 8th January, which includes the Secretary of State's own amendments.

Here is a comprehensive summary of the key proposed amendments to the Bill, that are of particular interest to landlords and letting agents:

Rent in Advance:

• A new clause prohibits the request or acceptance of rent payments before a tenancy is entered into for assured tenancies. This amendment to the Tenant Fees Act 2019 makes rent in advance a "prohibited payment". This does not apply to initial rent.

• The bill introduces a prohibition of rent in advance after a lease has been entered into except for the initial rent. This means that rent will be due on a substitute rent day. The substitute rent day will be the regular rent day if the compliant rent periods have a regular pattern. Otherwise, it will be the first day of the rent period.

• The bill defines "initial rent" as rent for the first rent period, or any later rent period ending within the first 28 days of the tenancy.

• There are amendments to the Tenant Fees Act 2019 to state that if more than the "initial rent" is paid before the tenancy, it is a prohibited payment. Additionally, if the amount of rent payable is increased for an initial period, the increased amount is also a prohibited payment.

• There are provisions to prevent landlords and letting agents from inviting, encouraging, or accepting prohibited pre-tenancy payments of rent.

• Several amendments propose limits on the amount of rent that can be requested in advance, including one that suggests a maximum of two months' rent and another limiting it to one month's rent.

• A breach of these rent in advance rules would mean that the related term of an agreement is not binding on the relevant person.

• Local authorities can enforce the rules around pre-tenancy payments of rent.

Guarantors:

• A new clause limits a guarantor’s liability for rent following the death of the tenant. The guarantee becomes ineffective for rent payable after the tenant's death, or the death of a family member of the guarantor who is also a tenant.

• The calculation of rent owed by the guarantor for the period in which the tenant dies is given by a specific formula.

• The definition of a family member for the purposes of the guarantor clause is provided.

• Other amendments propose further restrictions on guarantor requirements, such as a restriction on requiring a guarantor if the tenant's income is sufficient, or housing benefit is paid directly. In other cases, a guarantor's liability may be restricted to six months' rent.

• Where a guarantee is required for a joint tenancy, the sum claimed should not exceed the proportion of the loss attributable to the individual tenant, or if this cannot be proved, the total loss divided by the number of tenants.

Grounds for Possession:

• There is a new ground for possession (Ground 6ZA) where a tenant has been provided with alternative accommodation by a relevant social landlord during redevelopment of their original home.

• Ground 7 for possession is amended so that it cannot be used if the person inheriting the property was residing in it, unless the deceased person had themselves inherited the dwelling or the tenancy is a "special tenancy".

• Ground 4A will not be available if the tenancy of student accommodation is granted more than 6 months before it begins.

• The bill will also amend the Local Government and Housing Act 1989 to take account of changes to grounds of possession.

• The bill makes provision for circumstances when Ground 6 applies in relation to long residential tenancies.

Rent Increases and Controls:

• Several amendments seek to limit rent increases, including one that ties increases to the Bank of England Base Rate.

• Another amendment proposes that rent increases should be capped at the lower of the increase in the Consumer Prices Index (CPI) or the percentage increase in median national earnings.

• The bill clarifies that when determining rents, tribunals must take into account limits on rent increases, and need not consider existing market rates.

• There is a clause that suggests the establishment of an Independent Living Rent Body to set rules for calculating proposed rent levels, taking into account factors such as property type, size, condition, location, and local incomes.

• The bill states that rent repayment orders can be made against superior landlords who have committed an offence.

Other Key Changes:

• The bill expands the Decent Homes Standard to Ministry of Defence service family accommodation.

• There is a proposal to establish a body to report on the impact of the Act on rent levels in the private rented sector.

• The bill proposes that landlords must give permission for home adaptations for people with disabilities where a Home Assessment has been carried out.

• The bill introduces a private rented sector database that will include detailed information on landlords and dwellings.

• There are changes to regulations for redress schemes, clarifying how fees are calculated.

• The bill restricts the ability for landlords to rely on terms of a tenancy agreement or license to occupy to defend against the offence of failing to obtain a license for a house in multiple occupation (HMO).

• The bill increases the length of fixed term tenancies that will be considered assured tenancies from 7 to 21 years. It also excludes some fixed term tenancies and leases in a “regulated home purchase plan” from being assured tenancies.

• The bill introduces a requirement for landlords to repay rent for days after the end of the tenancy.

• The bill modifies the rules around the provision of a notice by a tenant when they are the first tenants since the construction of the property.

Remember kids - these are all simply proposals at the moment, that are due to be debated and voted on the 14th January. But this is a great opportunity to keep you clients informed, and to demonstrate your knowledge and expertise in your marketing.