The Renters’ Rights Bill has become a major talking point in the property market, sparking questions and concerns from landlords across the UK. With much misinformation circulating, we’re here to clarify three of the most common questions we’ve been asked, and to provide accurate insights into how the Renters’ Rights Bill could affect you.
Will I Be Able to Evict Tenants If I Need To?
The honest answer is: yes and no.
Under the Renters’ Rights Bill, all tenancies will convert to periodic tenancies, meaning tenants can stay as long as they wish, and fixed-term assured shorthold tenancies will no longer be used. However, if a tenant breaches the terms of their tenancy agreement – for instance, by causing property damage or falling seriously behind on rent – you will still have the right to evict them. These changes to eviction rules for landlords are intended to make the process more straightforward and efficient.
While no-fault evictions (also known as Section 21 evictions) will be prohibited, landlords will still be able to reclaim their property if they plan to sell or move in themselves. This shift means it will be even more crucial to find and keep the best tenants – something that an experienced letting agent can assist with.
Will I Be Able to Increase the Rent?
Yes, landlords will still have the right to increase rent once a year, up to the current market rate, during an active tenancy. However, tenants will be able to challenge the increase if they believe it is excessive. Between tenancies, there will be no restriction on rent increases, allowing landlords to adjust rent to whatever level they deem appropriate.
Given these rent increase guidelines under the Renters’ Rights Bill, many landlords who may have previously chosen not to raise rent annually could decide to make the maximum allowed increase each year. It’s a judgement call, and a knowledgeable letting agent can offer tailored advice to help you decide on the best approach.
Will It Still Be Worthwhile to Be a Landlord?
While the Renters’ Rights Bill introduces additional tenant rights and red tape, there may also be positive aspects for landlords. If some landlords leave the rental market, the resulting low supply and high demand could drive up rental prices, potentially leading to higher returns for those who choose to stay.
In short, while the bill does increase regulations, being a landlord could still be very rewarding. However, it will be essential to stay organised and informed. Once again, working with a reliable letting agent can help you manage these new rental laws smoothly and efficiently.
Stay Informed
Remember, the Renters’ Rights Bill is still a proposal and hasn’t yet become law. As discussions progress, we may see amendments or further clarifications. We’ll keep you updated with all the latest information.
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