"The changes being introduced are some of the biggest impacting landlords for decades, and the potential cost of falling foul of the new legislation in terms of reputation and financial penalties is enormous"
- David Adams - Cavendish
Only one in six landlords (16%) say they are fully prepared for the introduction of the Renters’ Rights Bill, according to a survey of 1,001 landlords across England commissioned by Cavendish, a leading estate and lettings agent.
The remaining 84% fall into several categories: 7% have not heard of the Bill, 29% are aware but do not understand what it means for them, 16% know very little, and 32% have a general understanding but still have questions.
The Renters’ Rights Bill is set to overhaul the private rented sector in England. Key measures include banning Section 21 evictions, replacing fixed-term tenancies with periodic tenancies, and introducing new rent increase regulations.
Under the Bill, landlords face higher fines for non-compliance, starting at £7,000 and rising to a maximum civil penalty of £40,000. Tenants will gain more power to challenge excessive rent increases, with landlords only allowed to raise rent once a year and required to provide two months’ formal notice via a Section 13 notice. If tenants dispute the proposed increase, the First-tier Tribunal will determine the appropriate market rent.
Other elements of the legislation include restrictions on unreasonably denying tenants the right to keep a pet. The Bill is scheduled to return to the House of Commons and House of Lords on September 8 for final amendments and approval, after which it will receive Royal Assent and become law.
David Adams, managing director of Cavendish and author of The Landlord’s Playbook, commented: “There is a huge amount at stake for landlords with the imminent introduction of the Renters Rights Bill.
“The changes being introduced are some of the biggest impacting landlords for decades, and the potential cost of falling foul of the new legislation in terms of reputation and financial penalties is enormous."
“While we have been supporting landlords directly and via regular webinars for some time, it is clear from our survey that the vast majority of landlords across England do not feel fully prepared for what is set to become law in a matter of weeks.
“Being fully prepared is the only way forward if landlords are serious about protecting and growing their rental portfolios.”
