New rules on standards as Renters’ Rights Bill published

The Renters’ Rights Bill will introduce the biggest changes to the way in which the rental market operates in more than 30 years.

The loss of Section 21 and the fixed term have stolen most of the headlines, but the new Bill also proposes a number of changes to the way in which standards in privately rented properties are measured and enforced.

Key takeaways when it comes to safety and standards include plans to:

Introduce a Decent Homes Standard to the private rented sector (PRS) with fines of up to £7,000 for failing to meet standards

Extend Awaab’s Law to private renting – setting clear timeframes within which landlords must make homes safe where they contain serious hazards

Create a digital private rented sector database with information for landlords, tenants, and councils

Improve local authority enforcement – giving local authorities greater powers to investigate and enter PRS properties and substantially increase the financial penalties for non-compliance

The Decent Homes Standard currently exists in the social sector, but until now has not applied to privately rented properties.

While there is not yet any detailed information as to what the standard will look like, broadly speaking it will ensure rented properties are free from hazards. The existing standard also includes rules about the age of certain fixtures and fittings in the property.

This is something which could have financial consequences if your kitchens and bathrooms are older, even if they still in full working order.

Currently the Housing Health and Safety Rating System(HHSRS), the tool used to assess hazards in residential premises, is under review and we are keen to hear more about the outcome of this and how it will interact with the new standard.

Awaab’s Law, introduced in the wake of the tragic death of toddler Awaab Ishak due to mould in his housing association home, sets clear timeframes within which landlords must rectify serious hazards. Applied to the PRS for the first time, it will give tenants the right to take their landlord to court if they don’t meet their obligations, much in the same way they can now under Fitness for Human Habitation laws.

Digital database

The plans for a digital private rented sector database with information for landlords, tenants, and councils appear similar to the previous government’s property portal plan, something I covered in a previous blog.

While, as yet, there is little information as to how the database will work – or what it will cost – it is likely it will require landlords to register their properties and demonstrate compliance with safety regulations by uploading copies of documents such as Energy Performance Certificates (EPC) and gas and electrical safety certificates. 

This could potentially replace the requirement to serve these compulsory compliance documents to tenants in person at the start of a tenancy. 

Although it is very early days ultimately it would be great if we could link our Portfolio and Safe2 systems to the new database, meaning landlords would only need to fill in their details and upload their documents once, something we will be contacting the government to discuss.

Changes to enforcement powers will give local councils new authority to enter properties without a warrant – there are also provisions that rule superior landlords, and those whose rentals are in the care of letting agents, will be responsible for any issues regarding property standards.

It is, therefore, essential that you as the landlord are confident that you are compliant with all areas of regulation; and that your agent is aware of best practice and is doing their job correctly.

What does the NRLA think?

The NRLA is supportive of any moves to improve standards in the private rented sector and appreciates the Government has recognised that ‘most landlords act in a responsible way’.

However, with the news that changes will be implemented within a couple of months of the Bill gaining Royal Assent, potentially spring or summer next year, it is essential the sector is given time to digest the detail of the changes and exactly what the new requirements will be.

It is vital that the Government publishes the results of the HHSRS review – and we will be writing to ministers requesting this. We also need more information about what the new Decent Homes Standard will look like –and what landlords will need to do to register on the database.

We are liaising with Government on the timetable for change and are meeting with other key industry stakeholders to discuss various aspects of the Bill, working to ensure it works for landlords as well as renters.

More information 

Part of the NRLA family, Safe2 is a one-stop-shop for all things compliance, sending alerts when documents are due to expire, organising inspections and repairs and issuing certificates. For more information on Safe2 and its services visit nrla.org.uk/safe2

Please follow our social media channels and keep an eye on the NRLA news site for all the latest on the Renters’ Rights Bill and check out the NRLA’s dedicated  Renters’ Rights Hub.