Upcoming Changes Every Landlord Should Know About
The private rented sector is changing at a pace we haven't seen for many years. While much of the attention has focused on the Renters' Rights Act, several other important legislative changes are either already in force or expected over the coming months.
For landlords, staying informed is essential. For those using a professional managing agent, much of the day-to-day compliance is handled on your behalf, but understanding what's changing can help you protect your investment and avoid costly mistakes.
The Renters' Rights Act
The biggest change to the rental market in decades is well underway.
Among the key changes are:
- Fixed-term tenancies are now periodic by default.
- Section 21 'no fault' evictions have been abolished.
- Landlords need to rely on revised possession grounds where appropriate.
- Tenants now require two months' notice if they wish to end their tenancy.
- Rules around rent increases have changed, with increases generally limited to once every 12 months using the prescribed process.
- New protections around pets and discrimination have been introduced.
- A Private Rented Sector Ombudsman will provide an independent route for complaints.
- A national landlord database is expected to become mandatory.
Whilst these reforms may sound daunting, good landlords who provide well-maintained homes and communicate openly with tenants are unlikely to experience significant disruption.
Health & Safety Expectations Continue to Rise
The standard expected of rental properties continues to increase.
Landlords should ensure they remain compliant with:
- Annual Gas Safety Certificates.
- Electrical Installation Condition Reports (EICRs) every five years.
- Smoke alarms on every storey.
- Carbon monoxide alarms where legally required.
- Legionella risk assessments.
- Safe furniture and furnishings.
- Ongoing maintenance to prevent hazards under the Housing Health and Safety Rating System (HHSRS).
The Government is also consulting on replacing the current HHSRS (Housing Health & Safety Rating Sytem) with a new, clearer assessment system. Whilst details are still being finalised, the emphasis will continue to be on identifying and resolving hazards before they become serious problems.
Anti-Money Laundering Rules
Anti-Money Laundering (AML) regulations continue to receive increasing attention across the property industry.
Letting agents are already required to undertake identity checks in certain circumstances, particularly for higher-value rental properties, and the scope of compliance is expected to continue evolving.
You may therefore be asked to provide:
- Proof of identity.
- Proof of address.
- Evidence confirming ownership of the property.
- Information regarding the source of funds where appropriate.
- If you have had a tenant move in in the last 12 months you may have been asked to complete this already.
Whilst this can feel like additional administration, these checks help protect landlords, tenants and the wider property market from fraud and financial crime.
The Decent Homes Standard
The Government intends to extend the Decent Homes Standard into the private rented sector.
Although final implementation dates are still to be confirmed, landlords should expect greater emphasis on ensuring homes are:
- Free from serious hazards.
- Warm and energy efficient.
- Structurally sound.
- Modern and in a reasonable state of repair.
- Equipped with suitable kitchens and bathrooms.
Properties that have been regularly maintained are likely to require relatively little work.
Awaab's Law
Following the tragic death of Awaab Ishak, new legislation is being introduced that will require landlords to investigate and resolve issues such as damp and mould within strict timescales.
This places greater emphasis on:
- Responding quickly to reports.
- Investigating the underlying causes rather than simply treating symptoms.
- Keeping accurate records.
- Completing remedial works promptly where necessary.
Professional management will become increasingly valuable as response times become more tightly regulated.
Energy Efficiency
Minimum Energy Efficiency Standards remain under review.
Whilst there is currently no confirmed implementation date for higher EPC requirements, landlords should keep an eye on future announcements.
Simple improvements such as better insulation, modern heating systems and energy-efficient lighting can not only improve EPC ratings but also make properties more attractive to prospective tenants.
Digital Compliance
Landlords should also expect increasing digitisation across the sector.
Future requirements are likely to include:
- Registration on the national landlord database.
- Easier digital access to compliance documentation.
- Greater transparency regarding property standards.
- Improved record keeping.
Keeping documentation organised has never been more important.
Why Professional Management Matters More Than Ever
Keeping on top of changing legislation can feel like a full-time job.
Professional property management isn't simply about collecting rent, it's about protecting your investment, ensuring compliance and providing peace of mind.
At Perry Bishop, we continually monitor legislative changes, keep our landlords informed and help ensure their properties remain compliant with the latest legal requirements.
Whether you're an experienced portfolio landlord or letting your first property, our team is here to guide you through every change the industry brings.
** REMINDER - Making Tax Digital is almost here! **
A quick reminder for landlords that the next Making Tax Digital (MTD) milestone is fast approaching, with the deadline this Friday. If you're affected by the new rules, now is the time to make sure you're registered, your software is ready and you're prepared for the new digital record-keeping and reporting requirements. If you're unsure whether Making Tax Digital applies to you or what you need to do next, we recommend speaking to your accountant or tax adviser as soon as possible to avoid any last-minute issues. Click here to read more.
Need Advice?
If you'd like to discuss how these changes may affect your property or portfolio, our experienced lettings team would be delighted to help.
Get in touch with your local Perry Bishop office for friendly, practical advice tailored to your circumstances.
We care about property, we care about you.