5 things landlords should know about changes to the private rental sector, including Section 21
Tuesday’s Queen’s Speech has confirmed the much anticipated reform to the private rental sector, including changes to Section 21 and the introduction of the Leasehold Reform Act 2022. If you’re a landlord, or involved in property, you’ll want to understand what this might mean for you.
What does this mean for the private rental sector?
Although the white paper is yet to be published, early indications show 5 key areas where we know change is coming:
- Removal of Section 21 from the Housing Act 1988 - this is with a view to giving Tenants greater security and fundamentally trying to reduce the number of ‘retaliatory evictions’.
- Reformation of the current possession grounds available to Landlords where there have been repeated instances of rent arrears and / or anti-social behaviour - the end goal here being a more efficient process.
- Application of the Decent Homes Standard (legally binding) for the first time in the private rental sector, with the aim of ensuring safer and better quality homes to Tenants.
- Introduction of a Private Landlord Ombudsman which will enable disputes to be settled quickly without the need for the costly court process.
- A new property portal designed to remind Landlords of their obligations, while giving Tenants greater visibility as well as local authorities.
Looking away from the private rental sector, the Leasehold Reform Act 2022 will, amongst other things (to be confirmed) see Landlords no longer be able to charge ground rent, and stipulate all new houses are built and sold as freehold; meaning the abolition of leasehold houses.
What don’t we know yet?
As far as the rental reforms are concerned, everyone is holding their breath and waiting to see how the abolition of Section 21 will play out and crucially, what mechanism will come into force to replace it so that Landlords can regain possession.
We’ll be keeping our eyes on the news as it develops, so check back to the Lyvly blog for further updates, or drop us your details at www.lyvly.uk/landlords to be the first to receive updates from Lyvly.
If you’re a landlord worried about increasing regulations and red-tape, including changes to Section 21, you’ll want to consider how you can maximise your rental income. Book a valuation with Lyvly here and see how much more you could be earning.