Landlords unprepared for Renters’ Rights Bill ahead of it becoming law

Only one in six landlords are fully prepared for the Renters’ Rights Bill which returns to Parliament today (8 September), a survey reveals.

The poll of 1,000 landlords by letting agents Cavendish reveals a mixed understanding of the bill, with many landlords still having questions.

The news comes as the Renters’ Rights Bill prepares to enter its final stages on Monday 8th September and proceed to the “ping pong stage,” where amendments still require approval from the House of Commons before becoming part of the final legislation.

Bill will overhaul the private rented sector

According to the survey, 7% of landlords have not even heard of the bill at all, are aware of it but don’t know what it means for them (29%), have heard of it but know very little about it (16%) or have a general understanding but still have questions (32%).

David Adams, managing director of Cavendish and author of The Landlord’s Playbook, warned landlords that the bill will overhaul the private rented sector, strengthening tenant rights, including the ability to challenge rent increases

Landlords will only be allowed to raise rent once a year and must provide tenants with two months’ formal notice using a Section 13 notice.

If tenants believe the proposed increase is above the market rate, they can challenge it at the First-tier Tribunal, which will decide the appropriate market rent.

Under the bill, landlords will face higher fines with civil penalties for non-compliance, starting at £7,000 and rising to a maximum civil penalty of up to £40,000.

Huge amount at stake for landlords

Mr Adams stressed the importance of landlords preparing for the bill as it returns to the House of Commons and House of Lords for final amendments and approval.

He said: “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.”