Many landlords are extremely angry that their right to a no-fault eviction is due to end when the Renters Rights Bill comes into force.

No doubt, they will be looking to create an occupation type where they will have similar rights.

Here are four options they may be considering:

1. Utilising section 30 and creating 7 year + tenancies

As pointed out by Justin Bates KC when he gave evidence to the committee stage of the bill, section 30 of the bill currently provides that the bill provisions will not apply to a fixed term tenancy of more than seven years.

As he pointed out, it would be easy for a landlord to grant a fixed term of seven years and one day with a right to terminate on two months’ notice.

This type of tenancy would be extremely prejudicial to tenants as the various repairing and fitness rules do not apply to tenancies with a term of seven years or more.

However, as this issue was pointed out to the committee, it is highly likely that section 30 will be amended or deleted. Indeed, Justin Bates informed the committee, during his evidence, how this could be done. So, this option is unlikely to remain available for landlords.

2. Creating a common law tenancy

This was a suggestion put forward by one of our Landlord Law members on our forum.

The member is a student landlord, and he suggested renting a property to the student’s parents. As they would not be living at the property, it would be a common law tenancy – as section 1 of the Housing Act 1988 limits the application of the act for tenancies where

the tenant or, as the case may be, at least one of the joint tenants occupies the dwelling-house as his only or principal home

The suggestion was that the students would be allowed by their parents to live in the property as permitted occupiers.

At the moment it looks as if this could be an option for student landlords.

3. ‘Proper’ residential licenses

A tenancy is the default occupation type in England.  For this not to apply, there needs to be something that takes the occupation outside the definition of a tenancy.

The leading case here is the House of Lords decision in the case of Street v. Mountford. This was about whether Mrs Mountford had a tenancy or a residential license.  Their lordships held that a tenancy would, in most cases, not be created if the occupier did not have ‘exclusive possession’.

One common way of creating a residential tenancy where the occupier does not have ‘exclusive possession’ is for the landlord to contract to provide services.  If these require the landlord or their employees to regularly enter the property.

These could be:

• Cleaning services
• Providing and changing towels and bed linen
• Having a concierge service which would receive deliveries on behalf of the occupier and put them in the property (normally, this would be a flat)
• This could include putting away groceries into the kitchen larder, fridge and freezer
• Entering to carry out basic services such as changing lightbulbs when the occupiers are out

However, for a genuine residential license to be created, the services must actually be provided. This sort of thing will be expensive for the landlord to provide.  So, this type of ‘serviced accommodation’ will normally be at the higher end of the market.

It is possible, though, that regulations made after the bill comes into force will provide for residential licenses to be regulated, as has happened in Wales.  So landlords considering providing serviced accommodation should watch out for this.

4. Allowing tenants to sublet to lodgers

Lodgers are excluded from protection under the Protection from Eviction Act 1977 and so landlords do not need to obtain a Court order for Possession. Provided the conditions in section 3A subsections (3) and (3) of the act apply.

These are basically that:

• The landlord or a member of the landlord’s family occupied the property as their only or principal home immediately before the license was granted, and
• The occupier shares accommodation with the landlord or licensee. Note that this must be ‘proper’ living accommodation, such as a shared living room or kitchen, not just staircases, passages, corridors etc.

So, although the tenant would be protected under the act, anyone they sublet to (provided they shared living accommodation with them) would not.

The only problem with this is that it would, in most cases, turn the property into an HMO. If there were more than 5 occupiers, this would be a licensable HMO (or if the property was in an area subject to additional or selective licensing).

So this would only really ‘work’ if there were just two people living at the property, as a property with just two occupiers cannot be an HMO.

This model could, though, be used when a landlord purchases a flat or house for their student child, who is allowed to share it with just one lodger.

If you want to find out more about the law applying to lodgers, see our Lodger Landlord website.

Any other suggestions?

These are all the options that I can think of just now. But do any readers have any other suggestions?

The post Four options for landlords wanting to retain section 21 type eviction rights appeared first on The Landlord Law Blog.

Welcome to another Newsround from Landlord Law. Let’s see what the team has found this week in the news.

New reforms pose serious risks to self-managing landlords

With a swath of new changes hitting landlords once the new Renters Right Bill becomes law, self-managing landlords are being advised to start using a reputable letting agent or face the consequences of heavy fines of up to £40,000.00 for non compliance.

Best Estate Agents’ Danielle Nash says

As a result of the volume of changes, including all tenancy agreements needing to be updated and reissued, it will be very difficult to stay compliant with the legislation without the support of a knowledgeable and experienced letting agent.

Landlords not following the new rules could face penalties of up to £40,000 for major offences and repeat non-compliance.

Local authorities will be given greater powers and will be able to hand out large civil penalties, Best Estate Agents claim that landlords will need the support of an agent they can trust.

But then they would say that, wouldn’t they?  Self-managing landlords can also join us here at Landlord Law.  We support, provide training and have a wealth of legal resources for landlords in the private rented sector. We have a very active membership where landlords feel very much supported and represented.

You can see more of what we do here. You don’t need to do it alone!

Social landlords are in the firing line again

Social housing landlords have been told to prioritise a ‘positive complaints culture’.

The Housing Ombudsman has just published its latest complaint handling report that claims that many landlords are still being issued with Complaint Handling Failure Orders – many of whom have been given multiple orders – where they are failing to comply with the Code.

Richard Blakeway from the Housing Ombudsman said

Whilst essential this is done, landlords must adopt an ethical complaint handling stance, which looks at the person behind the complaint and understands the impact the situation can have when services fall short.

He added social landlords must improve their policies and practices. You can read more about who the main culprits are here.

Some landlords still have no carbon monoxide alarms

As this week is Carbon Monoxide Awareness week, it is somewhat startling that in  new research just published by Domestic and General found that almost 10% of landlords still have no carbon monoxide alarms fitted in their rental properties despite having gas appliances within the property.

This has been a legal requirement since October 2022.

Ian Palmer-Smith from Domestic & General said

As a general rule, you should have a CO alarm on every level of a rented property, as well as near areas such as bedrooms, and any room that contains a boiler, fire, or stove.

Landlords can face fines up to £5000. having an alarm is the only way to detect if there is a carbon monoxide leak as it is invisible, extremely dangerous and can kill, stats have shown that there are around 40 deaths and 440 hospital admissions each year due to carbon monoxide poisoning.

Landlords have to have these fitted in every room that is ‘living accommodation’ and should also be checking these alarms on every inspection.

Evictions are down, according to Generation Rent

Generation Rent has surprisingly announced in its recent survey that there have been less evictions in 2024 and that less tenants have been issued with a section 21 notice. However, there have been a rise in Section 8 Notices (rent arrears) along with tenants moving out at the end of their fixed term.

They add though, that once the new Renters Right Bill comes into force next year, it will end fix term tenancies, which will put less pressure on tenants to move out or have to renew their tenancies. Rent rises however are on the increase this year.

They said

We have asked private renters if they have faced a rent rise in the past 12 months in our surveys since 2022, and asked for a breakdown of the reasons they were given. The number who have faced a rent rise has risen from 50% in late 2022 to 67% in early 2024.

Bidding wars are now the main concern among renters, with one in five experiencing this in  2023-2024 compared to one in forty in pre-pandemic 2019.  This will be banned when the new Renters Reform Bill becomes law next year.

You can read more here.

Snippets

Renters delay plans to buy – in some cases by years
Airbnb links with council to promote home-sharing
Landlord of overcrowded HMO receives hefty fine
Student campaigners demand ban on guarantor requirements for tenants

See also our Quick News Updates on Landlord Law

Newsround will be back again next week

The post Landlord Law Newsround #366 appeared first on The Landlord Law Blog.

This is a question to the blog clinic from Alison who is a guarantor in England.

I signed up to be a guarantor for a friend’s rent 7 years ago on a 6 month short-hold tenancy.

They informed me in early October that the rent had increased from 500 to 620.  Two months after this came into effect I called them and said I believed my liability ended after 6 months. They have told me that the tenancy has rolled to periodic and that I’m liable until they either die or vacate the property

It does state in small print that if not renewed, it will go to periodic and mention rent increases.

I’m sick with worry they won’t release me from this and have also allowed dogs into the property now.

They have told me that the only way to dissolve this is for them to evict the tenant, with me paying all costs.

Any advice would be appreciated.

Answer

I don’t think you need worry. The guarantee will have ended when the rent increased as the tenancy was then no longer the tenancy you guaranteed.

You guaranteed a tenancy at a rent of £500 per month. You did not agree to guarantee a tenancy with a rent of £620.

The terms of the guarantee may have tried to continue your liability after a rent increase, but my view is that this clause will be unenforceable as it is an unfair term under the Consumer Rights Act 2015.

It is inherently unfair for someone who signs a guarantee on the basis of one rent to become liable for a higher rent where they have not specifically agreed to this – for example by signing a new guarantee citing the higher rent.

There is no need to do anything about this. Just refuse to pay if demand is made upon you, saying that due to the price increase, the guarantor is no longer enforceable.

The post Is this guarantor still bound by the guarantee after the rent increased? appeared first on The Landlord Law Blog.