The recently introduced Renters' Rights Bill brings proposed changes to the rental sector in England, although further changes may follow before the Bill will become law. A major aspect of this Bill is the creation of a new Private Rented Sector Landlord Ombudsman Service, which all private landlords with assured or regulated tenancies will be legally required to join, including those who use managing agents.

The most recent changes include:

• Advance rent limits: Landlords will only be allowed to request one month’s rent in advance, plus a security deposit of up to five or six weeks’ rent
• Student agreements: Students cannot be required to sign rental agreements more than six months before moving in
• Ombudsman funding: Landlord fees will fund the Private Rented Sector Ombudsman, which will handle disputes between landlords and tenants
• Guarantor liability: Family member guarantors will not be liable for rent if the tenant they guaranteed passes away.
  

Existing proposals:

• Abolition of Section 21: Landlords will no longer be able to evict tenants without a valid reason
• Removal of fixed-term and Assured Shorthold Tenancies: These will be substituted with Periodic Tenancies, providing greater security for tenants
• Annual rent increases: Landlords can still raise rents once a year, but they must give at least two months' notice
• Stronger action against unethical landlord practices: Local coucils will be given more power to crack down on the worst offenders, with fines lifted to up to £40,000
• Ban on discrimination: Landlords cannot discriminate against tenants with children, those receiving benefits, or owning pets, though they will be able to require pet insurance
• Prohibition of rental bidding: Properties cannot be rented for more than their advertised price
• Landlord responsibilities: All private landlords will be required to join the Private Rented Sector Landlord Ombudsman Service
• Regaining possession: Allowed after the first 12 months with four months’ notice for moving into the property or sale reasons
• The Decent Homes Standard: Although previously applied only to social housing, this will now extend to private rentals to ensure properties meet requirements for a safe and decent home.

Private Rented Sector Landlord Ombudsman Service

This Ombudsman Service allows tenants to file complaints about their landlords at no cost. It aims to offer fair and unbiased solutions, with the power to require landlords to apologise, provide information, take corrective actions, or pay compensation. Landlords will also benefit, as the service will help resolve complaints efficiently and offer guidance on improving their handling of tenant issues.

The Bill also includes strong enforcement measures for the Ombudsman Service. Local councils will be able to take action against landlords who do not join the service or who market properties without registration. Civil penalties can reach up to £7,000 for first-time offences and up to £40,000 for serious or repeat non-compliance or even criminal prosecution for repeated violations. Tenants can also seek a rent repayment order if landlords repeatedly fail to join the Ombudsman Service. Furthermore, landlords must comply with the decisions made by the Ombudsman; failing to do so may result in expulsion from the service and enforcement actions from local councils, although there will be a process for landlords to rejoin if they address their compliance issues.

Find out more on gov.uk here