While house price growth throughout the country has stabilised the cost of renting continues to soar. According to the latest Rightmove analysis, the cost of renting a property in Nottinghamshire has risen by 15% over the last year, with tenants in the county paying an average of £1,150 per month – the highest level on record.
By the time you read this, the Renters’ Reform Bill, which proposes to make significant change in the way Shorthold Tenancies will operate in the future, should have had its second reading in Parliament. This allows MPs to debate the finer details of the Bill and suggest changes. What follows is a prescribed process that sees the Bill work through both the House of Commons and the House of Lords until moving to the Royal Ascent stage and becomes an act of Parliament.
If you are wondering how long the entire process will take, expect at least 12 months to pass before we receive Royal Assent. To be more exact the Government makes new legislation a law only twice a year, on 1st April and 1st October. Practically, the Renters’ Reform Bill may become law on 1st October 2024.
Landlords, however, shouldn’t confuse Royal Assent with law. It is thought a ‘commencement order’ will be put in place following Royal Assent, allowing the Act to be enforced as law at a later date. This will give all landlords and the letting industry time to prepare for any changes.
Even though a change in law feels a long way off we, at Alasdair Morrison and Partners, are urging landlords to use the months ahead to understand better the impact of the Renters’ Reform Bill and get the management of their properties in shape. This will include managers planning for migrating fixed tenancies to periodic ones, reviewing any rents now, before increases are limited to once a year. We will also review all tenants together with each property’s long-term occupancy plan.
There will also be concern on the introduction of a new Decent Homes Standard as well as the impending upgrading of the Energy Performance Certificate Rating.
If you would like professional assistance with monitoring the Bill as it passes through Parliament and help with implementing the legal requirements of the final Act, please contact Alasdair Morrison Management Surveyors on 01636 670977.
