Renters’ Rights Bill – rent controls
Once the conference season is over, word has it that the second reading of the Renters’ Rights Bill will be taking place. There is really nothing groundbreaking in these proposals that should catch Cambridgeshire landlords off guard.
As there are 200 pages of clauses and suggestions it’s better to break these down into smaller chunks. So far, we have covered in greater detail:
- What the removal of section 21 will mean
- How the removal of fixed term tenancies might affect Cambridgeshire landlords
This week I am going to cover off three areas which has been headed as giving more rights to tenants:
- Strict controls on rent reviews and a ban on in-tenancy rent review clauses
- A ban from discriminating against tenants on benefits, or with children
- Tenants given strengthened rights for having a pet in a rented property
Controls on rent reviews
These need to be no less than 12 months and need to be a fair market rate. For us that is no change to what we do. As landlords we are looking for long term tenancies with people who are happy in there home. We will always advise you what the market rate for a particular property is and balance this with the length of the tenancy and the condition of the property.
The detail of what this really means will come out in the wash as things progress.
Discrimination against tenants on benefits
There is already legislation in place that advises as agents we cannot advertise a property with “no benefits”. So, no change. However, the deciding factor on any new tenancy is affordability nothing to do with where income comes from. If more than 30% of the household income is to be spent on rental, regardless on whether the applicant says they are happy to, the referencing company will not give a green light. This means the landlord will not be able to take out insurance if they so wish. Nothing to do with discrimination just down to affordability
Pets in a rented property
After the abolition of section 21 this has been the second most discussed point. The wording for the last bill said that you need to have a good reason to refuse, so you still have choice. It is not an automatic slam dunk.
It does not mean that your tenant can demand to have a pet in a leasehold property if your lease says that pets are excluded. It does not mean that your tenant could ask to have a pet here there is no garden. You just need to have a reason. What everyone seems to be missing is the small print you can ask tenants to take out pet insurance to cover potential damage to property. Since the tenant fee ban we were not allowed to take an additional deposit to protect against damage. So this would give more protection.
But I would ask why you wouldn’t allow a pet if the property was right for one. We all want long term tenants that are happy in their home. During the pandemic we saw a real spike in tenants wanting a pet but have not seen a spike in damage during our visits or at the end of the tenancy. We find that the vast majority of pet owners take their responsibilities seriously.
Again, we need to see the final wording on this clause.
If you have any concerns now just book an appointment for a quick chat.
