New law: Residential landlords and tenants face new laws changing their rights and obligations towards each other

The government announced in the recent Queen’s Speech that it intends to change the laws for residential tenancies. While there is no introduction date yet in prospect, this could have a significant impact on some landlords and the residential lettings market generally. Many landlords may choose to sell off residential properties they let.

One proposal is to give greater protection to residential tenants by abolishing no-fault evictions of tenants renting under an assured shorthold tenancy. Currently, a landlord of such a property can recover it from their tenants without having to give any reason, by serving what is known as a ‘section 21 notice’. The government proposes that this power be abolished.

It is also proposed that the existing ‘Decent Homes Standard’ should be extended to cover the private rented sector. This is a legally binding standard which ensures safer, higher quality and better value homes for those renting.

Conversely, the proposals also include greater powers for landlords to evict tenants for repeated non-payment of rent, and power to evict them faster if the tenant is guilty of anti-social behaviour.

Generally, there is a proposal to introduce an ombudsman to deal with landlord and tenant disputes, if the sides agree, as an alternative to going to court, and to build an online property portal providing information for both landlords and tenants.

Operative date

• To be announced

Recommendation

• Residential landlords should monitor the progress of the government’s proposals so that they can decide whether they wish to sell up and exit the private rented sector or, if they wish to remain landlords, how the changes will affect them.