The Agent Blog - Goodlord

Renters’ Rights Bill: Frequently Asked Questions from letting agents

Written by The Goodlord team | 07 October 2024

Letting agents need to stay informed about legislative changes, particularly the Renters' Rights Bill and its impact on the private rental sector. Watch Goodlord's latest webinar on-demand, New Rules, New Challenges: What Letting Agents Need to Know About Upcoming Reforms, to get expert insights on how to navigate these changes effectively.

Following the initial webinar, we received an overwhelming number of questions from letting agents regarding reforms - from EPC standards to Section 21. We’ve answered the most common questions below to help you stay compliant and ready for the upcoming changes.

Ensure your agency is prepared for upcoming legislation by watching the webinar here

EPC Standards and Regulations

Question: What is the purpose of setting a minimum EPC only on rented properties? Do you expect the way EPCs are measured will change?

EPC regulations are intended to help minimise fuel poverty for tenants and meet climate goals. The government aims to lift one million households out of fuel poverty with these new regulations.

The Department for Energy and Net Zero has announced a consultation with proposals to improve EPC certificates, making them more reliable and accurate. It’s not yet clear when this will happen.

We will update letting agents with the latest information regarding EPC regulations in our newsletter.

Question: Would you suggest that landlords get a new EPC even if it hasn't expired, to have a more accurate rating before deciding what work needs to be done?

The methodology for calculating an EPC rating changes from time to time. Even if no changes have been made to the property, a rating may have changed since the last certificate was issued.

It makes sense for landlords to get a new EPC to know exactly what needs to be done to achieve a rating of C.

Letting agents can download a guide to financial support schemes for EPC upgrades

Question: Are HMOs still exempt under EPC regulations in the new Renters’ Rights Bill?

HMOs are not currently exempt from EPC regulations, and this is not expected to change. If an HMO is let on a room-only basis, the entire flat/building must have an EPC conducted.

Leaseholds

Question: Labour promised to abolish leaseholds within their first 100 days, but then said it would take longer. When is this expected to happen?

The Labour government has not yet confirmed when they plan to abolish leaseholds, so at the moment, we do not know.

Stay up to date with the latest legislation in our latest webinar 🖥️

Renters’ Rights Bill

Question: When the Renters’ Rights Bill is introduced, will Section 8 allow me to evict a tenant after I move in if a family member wants to move into the property? Or does it only apply to the landlord?

The Labour government has introduced new grounds for Section 8 evictions, allowing you to evict a tenant if a close family member wishes to move in (Mandatory Ground 1). Landlords must give four months' notice if using this ground.

Want to know the difference between the Renters’ Rights Bill and the Renters (Reform) Bill? Download our latest info sheet

Question: What if a landlord tries to sell and is unsuccessful? Are they unable to rent it again for 12 months?

Yes. Tenants benefit from a 12-month protection period at the start of a tenancy, and landlords cannot sell until this period has ended.

Question: Is there a date for Section 21 to be abolished?

Matthew Pennycook, the Labour Housing Minister, has suggested that the Renters’ Rights Bill will be implemented in Summer 2025. Section 21 will be abolished at the implementation date, but we won’t know the exact date until the bill passes through parliament and Mr Pennycook confirms it. 

Question: Where can I get a full copy of the proposed Renters’ Rights Bill?

You can find the full legislative Renters’ Rights Bill document on the government website. The government has also published a guide to the Renters’ Rights Bill, which clearly outlines every element of the bill.

Question: What grounds for notice are recommended for a landlord who wishes to redevelop a whole building?

Mandatory Ground 6 under Section 8 allows an eviction notice to be served if a landlord wishes to redevelop the property to the extent that the tenant cannot remain during the redevelopment. However, various time limits and notice requirements apply, depending on the circumstances.

Learn from lettings experts on the key things to learn from the Renters’ Rights Bill

Question: Some of my landlords are concerned about how to remove a tenant who is genuinely causing a nuisance if you technically can’t end a tenancy.

There are currently discretionary grounds for possession where a tenant is causing a nuisance to neighbours, the landlord, or the landlord’s agents. These grounds will still apply in the future. The court will have discretion over whether to evict the tenant, based on the evidence provided and the seriousness of the nuisance.

Question: Under the Renters’ Rights Bill, will letting agents still be able to take advance payments for tenants, such as students?

We spoke to Ryan Heaven, Associate Solicitor at Dutton Gregory who commented: “We believe so. Currently, the legislation is somewhat ambiguous on this point. However, if the intention was to entirely prevent advance rent, this would likely have been made clear. Some tenants, like students, may fail referencing or be unable to provide a guarantor, so advance rent would be necessary”.