The Renters' Rights Bill makes significant changes to the rules about rent for landlords and tenants in England.

In this podcast episode, Richard Jackson and Suzanne Smith discuss the proposed restrictions on landlords when accepting offers from tenants, the new process that landlords will need to follow to increase rents, the new powerful rights for tenants to challenge and delay even reasonable rent increases, and what's happening with advance lump sum rent payments.

They also discuss the challenges that landlords and letting agents face with a very short implementation timetable, with the expected "big bang" change over to the new tenancy system by the summer of 2025.

Finally, they share tips on how to successfully navigate the change.

>> Related episode: #26: What happens when Section 21 is abolished?

>> Blog post: The new rules about rent in the Renters’ Rights Bill

>> Ask a question: Click here for question form

What we cover in this episodeThe changes to how landlords increase rentThe greater powers of renters to challenge rent increasesCan landlords accept advance lump sum payments of rent?The likely impact on tenants without a good credit historyThe rules to stop “rental bidding”

The changes to how landlords increase rent

Landlords will only be permitted to increase in-tenancy rent by giving at least 2 months' notice to expire at the end of a rental period, using the statutory process in Section 13 of the Housing Act 1988, and what will be an updated Form 4.

Landlords won't be able to increase rent by agreement (unless the agreement is to reduce rent after a landlord serves a s13 notice) and all rent review clauses in tenancy agreements will be null and void.

The greater powers of renters to challenge rent increases

As now, tenants will be able to appeal Section 13 rent increase notices in the First-tier Tribunal, who will determine the market rent. If they do challenge a rent increase at the FTT, any increase in the rent will only come into effect on the date of the FTT determination. In other words, it won't be backdated to the date specified in the notice.

This will have the effect of delaying an increase in rent that is fair and reasonable.

Given the current delays on a small number of cases in the FTT now and the expected increase in appeals, this may have the effect of what David Smith of JMW terms "rent suppression".

Can landlords accept advance lump sum payments of rent?

The Bill does not say in words of one syllable whether advance lump sum payments may be made, and there is some disagreement between lawyers. This needs to be clarified urgently.

The likely impact on tenants without a good credit history

If upfront payments are outlawed, and given the expected increase in rent guarantee insurance as a result of the abolition of section 21, unless tenants have a good credit history, they may find it difficult to find somewhere to rent.

The rules to stop “rental bidding”

When landlords list or offer a property for rent, they will need to set a proposed rent. Landlords will not be permitted to accept offers above the proposed rent from prospective tenants.

Credits

window.addEventListener('message',function(e){'https://widgets.blubrry.com'===e.origin&&'object'==typeof e.data&&(document.getElementById(e.data.senderId).style.height=e.data.height+'px')})

Music: "Paradise Found" by Kevin MacLeod of Incompetech. Licensed under Creative Commons: Attribution 4.0 License.