Pets
Love them or hate them, a tenant being allowed to have pets in a Buy-To-Let can be a big decision for a Landlord. A goldfish, hamster or chihuahua might be acceptable, but a rottweiler or a Bullmastiff named Snott may not.
Tenants’ Rights to Request a Pet in the Property
Have you ever found a suitable place to live only to find out they do not accept pets? The new Renters’ Rights Bill introduced to Parliament on 17th May 2023 seeks to encourage pet-friendly homes by giving responsible tenants the option to request a pet if reasonable. Although it is not illegal for a landlord to add a ‘no pets’ clause into the tenancy agreement, the bill will seek to prevent them from unreasonably withholding consent and encourages the tenant to challenge unfair decisions.
Satisfying both tenants and landlords: The bill does recognise that there are reasons why a landlord may refuse pets including: potential damage to property, neglectful maintenance, and nuisance to other tenants; however, the bill will allow landlords to require pet damage insurance so that both tenant and landlord are satisfied. The new Renters’ Rights Bill does not seek to merely benefit the tenant, there are several precautionary measures set out for landlords including the option for landlords to charge rent at a slightly higher rate to warrant the extra wear and tear of the property due to the pet. The government promises to improve the current system by providing 11 million private tenants with more stability in the security of their tenure, thus tackling the risks of homelessness which is affecting a staggering one in every 200 households. The 2023 figures from Shelter England show 123,000 children were among the 271,000 homeless people in England and although pets are not responsible for many of these cases, it does show initiative from officials to improve the stability of English renters and protect innocent families.
Abolishing Section 21 Evictions and Creating Fair Possession Grounds
The bill proposes that all assured tenancies be made periodic to ensure greater security for renters which prevents fear of eviction by challenging unfair rent increases and unscrupulous landlords. In the first 3 months of 2024 at least 7 thousand households in England were served with a Section 21 Notice in the UK even though “a better deal for renters” was promised in the Conservative Manifesto back in 2019.
Fairness: Government seeks to create greater fairness between landlord and tenant in terms of possession grounds by being reasonable and rational when dealing with each party. For example, the bill is not intending to strip landlords of their right to evict where it is reasonable and lawful to do so; tenants are just given greater safeguards. An example of these safeguards is the tenant being granted more time to find a new home if the landlord is evicting to move in or sell, as well as a 12-month protected period at the start of a new tenancy where the landlord cannot sell or move into the property or evict the tenant.
Backdoor evictions: These evictions are those that occur because the landlord has increased the rent so much, the tenant cannot afford to pay or get themselves in arrears, giving the landlord a reason to evict. Backdoor evictions will be tightly monitored by providing tenants with the means to appeal against unfair rent increases which is a tactic many landlords utilise however, with the new bill they must follow a particular process. Landlords are still able to lawfully increase rent to the standard market price, but this can be challenged by independent tribunals and can only increase once per year. To do this they must serve a Section 13 Notice 2 months prior to the intended increase.
Tenants right to complain: If a tenant wishes to complain about their landlord, the bill proposes to introduce a new Private Rented Sector Landlord Ombudsman to organize binding resolutions in an impartial and fair manner.
Creating a Private Rented Sector Database
The purpose of Database: How many people skip fine prints, terms and conditions and tenancy agreements? Studies suggest at least two-thirds of people either do not completely read their contracts or do not fully understand what they are signing up to. It is crucial to educate tenants on making informed decisions when signing tenancy agreements and helping landlords understand their legal obligations and compliance; this would prevent negative repercussions for both parties. Local councils will also benefit from this by assisting them and prioritising when targeting enforcement activity. If landlords wish to employ their right to implement specific possession grounds, they must register on this database or face disappointment.
Decent Home Standards for the Private Rented Sector
Awaab’s Law: This section of the bill seems self-explanatory but in 2023, 3.5 million households were living in homes that failed to meet the Decent Homes Standard and according to the English Housing Survey; 21% of these were private renters. The bill intends to dramatically remove the number of homes that fall below decent standards and keep private renters safe. To further this, the government proposes applying Awaab’s Law to the sector. Awaab’s Law puts pressure on social landlords to promptly address health hazards such as damp and mold within a specific timeframe for example, hazards must be investigated within 14 days of being made aware and where a hazard poses significant risk to health and safety, landlords must begin those repairs within 7 days (24 hours if it is an emergency). Other requirements are needed such as the duty to document and inform residents of all actions, provide alternative accommodation where appropriate and record correspondence between residents and contractors. Failure to comply when addressing serious hazards will result in a fine of up to £7000 by the local council or even face prosecution.
Awaab’s Law is named after 2-year-old Ashaab Ishak who sadly passed away by respiratory illness due to prolonged exposure to mold in his Rochdale home in 2020. This unfortunate event sparked the amendments to the Social Housing Regulation Bill in February 2023. This was not an isolated event as the NHS is estimated to spend over 2.5 million on cold, damp, poor housing-related illnesses per year.
When Will the Bill Come into Force?
The bill was introduced in September 2024, and yet there is no exact start date to becoming legislation although officials have addressed that it will be implemented in two stages. The first stage will be announced six months before implementation once the bill has received Royal Assent; in this stage all new tenancies will be periodic and the above details about pets will then be actioned. There will be a 12-month gap between the two stages and in the second all existing tenancies will transition to a new system.
In a Nutshell…
If you are a landlord, as the bill has not yet become law you can still serve a Section 21 Notice however, you must revise your legal obligations and demonstrate your compliance. No matter the relationship between you and your tenant, you must not make decisions that negatively impact your tenants’ rights as you could face legal implications. You should also keep updated with the law as amendments are constantly made to the private rented sector.
If you are the tenant, always check the tenancy agreement before signing and make sure to ask for advice if you do not understand any terms. You should keep yourself updated and informed of your rights so to not be manipulated by unscrupulous landlords. Make yourself aware of complaint procedures and do not cut off contact with your landlord. Although you enjoy rights as a tenant, you also have obligations to perform yourself to prevent any unnecessary conflict.
Contact Ai Law today for all your property needs.
The landscape is changing for BTL landlords, with the current government proposing more tenant friendly legislation and tax changes that hit landlord’s pockets. Whether you have a BTL for your retirement income, or own a portfolio, it is important to keep up with the ever changing rules surrounding BTL properties and being a residential landlord. Dealing with a tenant improperly can lead to unwanted results.
At Ai Law we handle Landlord and Tenant matters and can guide you through the process and rules you need to keep to ensure you don’t fall foul. If you are looking for help with your tenancies, breach of contract, or possession proceedings please speak to us today.
Sources:
https://www.law.ac.uk/about/press-releases/more-than-two-thirds-of-people-dont-read-their-contracts
https://www.gov.uk/government/news/landmark-reforms-to-give-greater-security-for-11-million-renters