Time needed to get Ducks in a Row for the Renters’ Rights Act
Kristjan Byfield recently wrote a Linkedin post about the importance of the government allowing time for the lettings industry to prepare for the changes that the #rentersrightsact will bring. Kristjan is right and it’s not just lettings and property management this will affect.
The impact assessment I put together last year (visual learner) illustrates just how far reaching the Act will be. It's seismic.
Let’s start with landlords and letting agents / PMs - they will have to amend and update processes and systems related to pre, during and post tenancy.
Tenants will need to educate themselves or be signposted to these changes.
Legal firms, solicitors, barristers and the Law Commission of England and Wales will become the lynch pins for legal paperwork, advice, court claims (at some point) navigating complex areas of the Act and a comfort blanket of sorts.
CRM providers play a significant role given the importance of #proptech in streamlining and perfecting the lettings process. They will no doubt modify their systems to assist with implementing change.
Referencing companies, insurers and professional guarantors provide landlords with the safety net they require in terms of the necessary protection to minimise risk. Many have already started changing their referencing criteria.
Local Authorities will have their work cut out for them - lack of manpower being an obvious challenge along with an increasingly demanding requirement for specialist knowledge to enable them to deal with not only enforcement but supporting landlords and tenants.
The MinistryofJusticeUK has been under the spotlight since the previous government announced the abolition of Section 21; how will the courts manage the existing backlog and new claims especially given that all claims via section 8 will result in hearings? How will the First Tier Tribunal deal with the increase in claims for RROs and challenges against rent increases?
The government's publications dept. will need to update documents and guidance in readiness for the legislative changes.
Those supplying legal paperwork will need to ensure that their ducks are in a row and ready for the demand for new terms and conditions of business, assured periodic tenancy and key templates.
So whilst there appeared to be a desire for the Bill to receive Royal Assent quickly, time here, is not of the essence. If the Bill is granted Royal Assent in late September - early October 2025, the Renters ' Rights Act may not any practical effect until a later date. Hopefully this will not be until 1st April 2026 which will give all those with a vested interest in the legislation and who are directly affected by the act time to plan accordingly.
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MHCLG Digital
Ministry of Housing, Communities and Local Government