Latest news with #RentersRights
Telegraph
6 days ago
- Business
- Telegraph
Rents to surge £900 to pay for Labour reforms
Labour's rent reforms will add almost £900 a year to the average tenancy, a report has warned. Nearly half of Britain's buy-to-let landlords (44pc) plan to increase rents in response to the controversial Renters' Rights Bill, according to research by housing lender Landbay. The landmark legislation, due to kick in this autumn, will limit landlords to just one rent increase per year capped at the 'market rate' – the price that would be achieved if the property was newly advertised to let. Landbay said property owners were planning to increase rent by an average of 6pc, which would add £74 to the average monthly rent, or £888 a year. The survey also found that the majority of landlords (89pc) intended to raise rents in the next 12 months. More than a third (40pc) planned to increase rents by 3pc or more over the next 12 months, while over one in 10 (11pc) said they did not intend to put up rents at all. The Renters' Rights Bill will introduce new protections and rights for the 11 million private tenants in England by reforming the current system of renting. An end to fixed-term tenancies, longer notice periods, and restrictions on rent increases will give tenants more rights and landlords less control over how they manage their property and buy-to-let business. The bill is currently being scrutinised in the House of Lords. The Government aims for the reforms to receive Royal Assent by summer 2025, with implementation expected between October and December this year. The National Residential Landlords Association (NRLA) argued that the bill could force landlords out of the sector and push up rents if it is passed in its current form. Chris Norris, of the NRLA, said the 6pc rent increase figure was consistent with the NRLA's estimates that the Renters' Rights Bill would trigger rent rises of 3pc to 4pc above inflation. He added: '[The bill] is likely to affect tenants directly in many more ways than landlords. 'You have the prospect of tenancies becoming more risky, harder to end – and you have to wait longer to claw back arrears. 'Landlords will be pricing in that risk when setting rents.' A recent survey by Pegasus Insight showed that 37pc of landlords planned to sell a property in the next 12 months while just 6pc said they intended to buy. Rents in England rose by 1pc in May to £1,226, the highest level since October 2024, according to letting agent software firm Goodlord's rental index. William Reeve, Goodlord's chief executive, said: 'Although the pace of year-on-year increases is starting to slow… ongoing supply issues coupled with landlord jitters ahead of the Renters' Rights Bill means that rents remain on track to rise for the foreseeable future.' The Government was approached for comment.
Telegraph
26-05-2025
- Business
- Telegraph
Renters Rights Bill: When will it become law?
Tenants who rent in the private sector are on the cusp of receiving greater protections from eviction, unfair rent increases and greater stability of tenure as the Renters' Rights Bill makes its way through parliament. The controversial body of legislation is the biggest change to renting in over 30 years according to industry body The National Residential Landlords Association (NRLA) which is battling to get some of the proposals changed to soften the blow for the buy-to-let sector. Here Telegraph Money explains the measures laid out in the bill, what that means for landlords and when it is likely to become law. What is the Renters' Rights Bill? The Renters' Rights Bill, which builds on the Renters' Reform Bill introduced by the Conservatives, will introduce new protections and rights for the 11 million private tenants in England by reforming the current system of renting. An end to fixed-term tenancies, longer notice periods to give renters more time to find a new home and restrictions on rent increases will give tenants more rights and landlords less control over how they manage their property and buy-to-let business. Labour says it will 'transform the experience of private renting' which will largely be achieved by ending Section 21 evictions dubbed 'no-fault evictions'. If the bill is passed in its current form, the NRLA argues that it could force landlords out of the sector – reinforced by a survey last month by Pegasus Insight which revealed 37pc of landlords planned to sell a property in the next 12 months while just 6pc said they intended to buy. New rules in the Renters' Rights Bill Evictions and serving notice: Section 21 no-fault evictions will be abolished. Fixed-term tenancies will be replaced with periodic tenancies, also known as rolling contracts that don't have an end date. Tenants will have a 12-month protected period at the start of their tenancy preventing landlords from forcing evictions to move back in or sell. Tenants can serve two months' notice to quit the property at any time. Landlords must serve four months' notice when moving back in or selling to give tenants time to find a suitable home. Landlords will not be able to evict a tenant in arrears until three months' payment have been missed, up from two months while the notice period has been increased from two to four weeks. Prices and payment: Rent increases are limited to once a year and only to the market rate which can be challenged by tenants at the first-tier tribunal if they believe it is excessive. Increases cannot be backdated. Large amounts of rent cannot be demanded in advance of a tenancy starting. Landlords must register with a digital database, failing to do so means that they cannot use certain grounds of possession. Asking rents must be published to prevent bidding wars making it illegal for landlords to accept offers higher than the rent advertised. Standards and safety: The Decent Homes Standard and Awaab's Law, currently applicable to homes in the social housing sector, will be extended to private sector landlords to ensure homes are made safe, are of good value and good quality. A private rented sector landlord ombudsman will be set up to provide an impartial and binding resolution for tenant complaints against landlords. Discrimination: Strengthened rights for tenants to have pets, although landlords can insist on pet insurance to cover any damage to their property. End discrimination against tenants on benefits or with children. Compliance: Councils will have the power to issue civil penalties of up to £7,000 to landlords who don't comply with the reforms rising to £40,000 for a serious breach or repeat non-compliance with the law. More strength will be given to rent repayment orders that can be issued by councils when landlords breach the law. What does the new renters' bill mean for landlords? Sylvie Harris, of property consultancy INHOUS, said: 'Through the abolition of Section 21 no-fault evictions, landlords will only be able to end tenancies using specific grounds under Section 8, such as rent arrears or anti-social behaviour or if they intend to sell or move into the property.' For the latter, an extended four-month notice period must be served. But the pressure this will place on a court system, which Matthew Pennycook, the housing minister, acknowledged during a parliamentary debate was 'on its knees', is raising concerns and has led to an amendment being tabled to review the impact of this plan on the legal system. When the Conservative government brought forward its draft renters rights legislation, then-minister Michael Gove said that the right to make no-fault evictions would remain in place until a full review of the courts had been completed. Currently, the average time between a landlord submitting a claim for an eviction and regaining possession of their property is more than seven months. In response to the Government's claims that the courts will be ready for the impact of the bill, Ben Beadle, chief executive of the NRLA, said: 'Seven months is an eternity for responsible landlords who may be dealing with serious rent arrears and for neighbours having to endure anti-social behaviour.' Not only could it take longer to evict a tenant, landlords will have to endure greater levels of arrears before they apply for possession as the minimum level of arrears for eviction is bumped up from two to three months. Landlords operating in the student let sector could also face challenges in operating their businesses efficiently if the legislation is implemented in its current form. Ending fixed-term tenancies removes the certainty for these landlords that their property will be available to let to a new batch of students when the academic year begins. Although grounds for possession have been included which allows landlords of houses in multiple occupation (HMOs) to evict last year's students to make way for a new group, one and two-bedroom student flats were not mentioned. Banning the receipt of large sums of rent upfront, meanwhile, could put landlords off renting to international students or tenants who have had credit difficulties in the past or do not pass affordability assessments. Without the security of payment in advance, these groups may struggle to be accepted. As the bill continues to undergo scrutiny, amendments to some of the measures may still be made. 'Reforms are still being actively debated and could change,' said Adam Jennings, of Chestertons. 'For example, 12-month fixed tenancies are still under discussion, with some stakeholders advocating for flexibility in terms of tenancy lengths. 'Another potential area for change involves the student housing market. The current restrictions on upfront rent payments are problematic for international students, and there's a push to either exempt certain categories of tenants or find alternative solutions.' Other amendments from the House of Lords include clarifications on the new grounds for possession and adjustments to notice periods. When will the bill become law? The bill is currently undergoing scrutiny in the House of Lords with the committee stage having commenced on April 22 2025. Although there is no definite date yet, Ms Harris says the Government aims for the bill to receive Royal Assent by summer 2025, with implementation expected between October and December 2025. The plan is to implement the changes to tenancies in one go rather than create a two-tier system that applies the rules to new and existing tenancies at different times.
The Independent
25-05-2025
- Politics
- The Independent
Single mother hit with 20% hike by landlord calls for UK rent control
A single mother facing a 20 per cent rent hike is campaigning for a cap on rent increases in the UK. Bridget Chapman, 56, from Darlington, County Durham, has been a private renter her entire adult life. She received a month's notice from her landlord informing her of a £100 rent increase. A recent survey by Generation Rent found that 61 per cent of renters have been asked to pay higher rent in the past year, with almost a quarter reporting an increase of over £100. Ms Chapman said that while she welcomes reforms in the Renters' Rights Bill going through Parliament, they do 'nothing to stop shock rent rises' like her family is currently faced with. The Renters' Rights Bill seeks to introduce an end to no-fault evictions, stopping bidding wars for tenancies, helping tenants challenge unreasonable rent increases and preventing landlords from demanding more than a month's rent in advance from a new tenant. 'I just got so angry that the landlord can raise the rent whenever he wants and give me a month's notice,' Ms Chapman told the PA news agency. 'I'm paying a lot more now and it's having a knock on effect on everything else. 'I'm a single parent, so even though my kids are now adults they're still young and I'm still supporting them. 'I have a very low disposable income so it's really difficult especially since everything else has gone up including gas and electricity.' Ms Chapman, who says she feels 'let down by the system' experienced extreme dampness in her previous home which led her to being rushed to hospital with pneumonia. 'We moved into the property and I've got asthma, so the damp started to creep in,' she said. 'We didn't realise how bad until the mould was literally black. 'The landlord gave me a dehumidifier which literally did nothing. 'Luckily I was okay. I survived, but when I had to recover, I had to go back to the house, which was full of damp and mould.' Ms Chapman hoped her new home which she has been renting for eight years would be better but she now feels she has suffered a 'huge blow' to her security. With rents in her local area being so high, she does not feel she can move to a more affordable option. Ms Chapman launched her petition which has gained over 45,000 signatures on Sunday, as she feels she 'can't do anything else'. 'Doing this petition is my way to make my voice heard,' she said. 'The Government firstly needs to cap rent increases. They also need to look at capping gas and electricity bills. 'Wages are not going up, so people are struggling even more, because they're on the same wage and they pay more money for everything else. 'You get people who are working hard, full-time, and they're having to go to food banks. I think that's so wrong.' Generation Rent says its research shows the 'most common' reason landlords put up rent is not higher costs, but rather to increase their revenue as local rents rise. Almost a third (31 per cent) of landlords blamed higher market rents, while a further seven per cent stated that the increase was because of letting agent advice. 'This is indefensible. If renters are to finally feel secure in our own homes, we need protections from shock rent rises,' a Generation Rent spokesperson said. 'Private landlords should not be able to raise the rent higher than inflation or wages. The Government can and must act to change this.' Government spokesperson said: 'Through our Renters' Rights Bill we are taking decisive action to transform the private renting sector for the better and empower tenants to tackle unreasonable rent hikes. 'Alongside this, as part of our Plan for Change we are putting more money in people's pockets by protecting payslips from higher taxes and increasing the minimum wage to deliver pay rises of up to £1,400 a year for millions of low-income workers.'
Telegraph
09-05-2025
- Business
- Telegraph
Angela Rayner to force through crackdown on landlords
Angela Rayner is forcing her crackdown on landlords through the House of Lords despite concerns that her controversial reforms will evade scrutiny. Labour peers have been ordered to sit until late into the night on Wednesday to get to the end of the Renters' Rights Bill. But the Tories have claimed that such a timeframe will not allow for sufficient scrutiny of elements such as forcing private landlords to make energy upgrades to their properties. The Lords is currently part-way through debating the Bill, which allows peers to scrutinise the text of the legislation clause by clause. The legislation will then go back to the House of Commons for MPs to consider any changes proposed by the Lords. But the Opposition has accused Labour of not being able to 'handle the heat of proper scrutiny' and 'resorting to bully-boy tactics to ram their bills through Parliament'. It comes after Sir Keir Starmer vowed that Labour would go 'further and faster' to deliver change, following sweeping defeats in local elections last week. The Renters' Rights Bill, introduced to Parliament last September, is set to implement several key protections for tenants, including a ban on no-fault evictions and fixed-term tenancy agreements. Another element of the Bill, known as ' Awaab's law ', will require landlords to carry out essential repairs within fixed time periods, such as dealing with damp and mould. The Bill is expected to become law later this year. Elements that will remain to be debated include the proposals by Ed Miliband for all private rental homes to have an energy performance certificate (EPC) of C or higher by 2030, with new tenancies compliant by 2028. Concerns have been raised by industry figures that landlords will be forced to renovate millions of homes at the cost of tens of millions. Baroness Eaton, a backbench Conservative peer, said: 'We have serious concerns about the impact the Renters' Rights Bill will have on the supply of residential homes in our rental market. 'It would be unacceptable to debate crucial issues such as EPC ratings in the private rented sector and local housing authorities' investigatory powers cursorily, late at night, simply to fulfil the Prime Minister's desire to go 'faster and further'. It is our duty to scrutinise this Bill thoroughly.' It comes after it emerged that Mr Miliband, the Energy Secretary, and Ms Rayner, the Housing Secretary, have joined forces on new rules for housebuilders, which will require new builds to have heat pumps and solar panels. The Telegraph understands the new rules will be announced by Ms Rayner this summer, and are likely to be in force by next year. A memo from Labour whips left on a printer in the House of Lords and seen by The Telegraph said to Labour peers: 'Your presence is required.' It added: 'Colleagues are needed to ensure committee stage finishes.' A Labour source said that the whip had been put in place 'because of the procedural shenanigans and games from a handful of Conservative peers over the past few month'. Labour has previously accused Tory peers of effectively filibustering in the upper chamber as a form of protest against the party's ban on hereditary peers. The source added that the whip was 'merely indicating to our own colleagues how we plan to keep the legislative plan on track'. Lord Jackson of Peterborough, a Conservative peer working on the Bill, said: 'The Prime Minister's vow to 'go faster and further' must not come at the cost of our constitutional duty to scrutinise legislation. He added: 'When Labour were in opposition, their peers debated two Bills for 17 days each and forced 15 days of debate on the Levelling Up and Regeneration Act under the last government. Five and a half days on a major Bill like this is nothing.' Paul Holmes, a shadow housing minister, said: 'Labour clearly can't handle the heat of proper scrutiny and are resorting to bully-boy tactics to ram through their bills through Parliament. 'The Renters' Rights Bill is a half-baked plan that will reduce supply of rental homes, push up the cost of renting and make things worse for tenants. 'It's deeply flawed and, judging by Labour trying to rush it past Parliament, even they know it is ripe to unravel.'
BBC News
27-02-2025
- General
- BBC News
'No-pets rental rule almost saw me lose my cats'
When Samantha Day received a section 21 eviction order from her landlord, she had two months to find a new home for herself and her two cats, Cali and as she began browsing the listings she was horrified to find nearly all of them stated no pets were allowed - and landlords she spoke to became cautious when she mentioned her Day, from Derbyshire, was considering temporarily housing her furry friends with family members before receiving help from a pet-friendly is now calling on landlords to be more open-minded about tenants with animals. Ms Day said she had found the lack of rental options for herself and her felines "scary and frightening"."It got to the point where I was asking family members if they could take them in temporarily in case I got kicked out," she told the BBC."It's sad knowing that there was a possibility that I might have had to give them up."Luckily a breakthrough came with the help of AdvoCatsEastMids, a non-profit voluntary organisation that helps tenants with pets find Berieza, the group's founder, helped Samantha create a pet CV - designed to set out their breed, medical history and best qualities with the aim of demonstrating the owner's responsible approach - and a new home was Berieza says she started the organisation because she saw a "real need" in the market - property website Zoopla estimates that only about 7-9% of rental properties are pet-friendly."I think that landlords should consider that while it's their property, it's also a tenant's home," she said."It's important for people to feel safe, secure and happy in their homes and for a lot of people that means having a pet." Ms Day said she understood the concern a landlord might feel but felt it was unfair to lump together responsible renters with "bad tenants.""A lot of people do look after their rented homes well, even with pets," she said. Change could be round the corner with the proposal of the Renters Rights bill, which seeks to give tenants the right the request a pet and states the request cannot be unreasonably refused by landlords. The government has yet to publish a guideline of what a reasonable refusal would would also allow damage to rented properties to be covered by pet insurance. Ms Berieza called the planned legislation "a very good step' but said there was still more that could be done."I think it will help tenants but they have to know that they still need to request permission and they can't just automatically think 'I have a right to a pet' and go and get one," she said. However, some landlords have raised concern at the bill's possible implications on the market and their businesses. "There could be a mass exodus of landlords from the market," said Paul Rowland, a Nottingham also warns of "massive reductions" of rental properties on the market due to the bill."It's about making sure there are consequences in case anything goes wrong," he cited a previous tenant who had moved out and left their cats in the property. Mr Rowland was eventually able to rehome the cats but had worried that he would have to take an "unfortunate trip to the RSPCA".The bill is currently in the House of Lords, in its committee stage, but Mr Rowland is not expecting to see any amendments to help landlords."The tin has been kicked down the track for far too long," he said."What we've got, is what we've got."
