New Landlord Rules 2024

1 September 2024, 19:02 BST

In 2024, the UK government is introducing several significant changes to landlord rules aimed at improving tenant rights, rental property standards, and the transparency of the rental market.

These reforms come as part of the broader housing strategy to address issues within the private rental sector. Below is a detailed look at the key changes that landlords need to be aware of for 2024.

Abolition of Section 21 ‘No-Fault’ Evictions

One of the most impactful changes coming in 2024 is the abolition of Section 21 of the Housing Act 1988, which allows landlords to evict tenants without giving a reason (commonly referred to as ‘no-fault’ evictions). This change is designed to provide tenants with more security and reduce the anxiety of unexpected eviction.

How This Affects Landlords:

• Notice Periods: Landlords will need to rely on Section 8 eviction notices, which require a specific reason for eviction, such as rent arrears or breach of tenancy terms.

• Increased Scrutiny: Evictions will now need to be justified in court, leading to a potentially longer eviction process.

Stricter Grounds for Evictions

While Section 21 evictions will be abolished, the grounds for evicting tenants under Section 8 will be expanded and clarified. This aims to ensure that landlords still have a way to recover their property if tenants are engaging in anti-social behaviour, damaging the property, or falling into significant rent arrears.

Changes to Grounds for Eviction Include:

• Rent Arrears Threshold: The current rule of needing two months’ rent arrears may be relaxed, allowing evictions for persistent late payments even if the total owed is less than two months.

• Anti-Social Behaviour: The grounds for eviction related to anti-social behaviour will be broadened, allowing landlords to take quicker action when necessary.

Reforming Rent Increases

Another key change in 2024 involves the reform of how rent increases are handled. Landlords will no longer be able to include automatic rent increase clauses in tenancy agreements. Instead, they will be required to give at least two months' notice before increasing the rent, and rent increases can only occur once per year.

Impact on Landlords:

• Predictability for Tenants: This offers more financial stability for tenants, but landlords may find it more challenging to adjust rents to market rates.

• Right to Challenge: Tenants will have the right to challenge any rent increase they feel is unjustified through the First-Tier Tribunal.

Property Standards and Energy Efficiency

Landlords will face new requirements to ensure their properties meet higher standards for health, safety, and energy efficiency. By 2025, rental properties will need to have an Energy Performance Certificate (EPC) rating of at least C, and landlords will be required to carry out necessary upgrades to meet this standard.

Key Requirements:

• EPC Upgrades: Landlords will need to invest in energy-efficient improvements like better insulation, double glazing, or more efficient heating systems.

• Health and Safety Regulations: Regular property inspections and maintenance will be critical to meeting health and safety standards. Failure to comply could result in fines or being barred from renting out the property.

Pets in Rental Properties

As part of efforts to make renting fairer, the new rules will allow tenants to request permission to keep pets. Landlords can only refuse if there is a valid reason, such as allergies or the unsuitability of the property for animals.

Important Points for Landlords:

• Pet Insurance: Landlords may ask tenants to take out pet insurance to cover any potential damages caused by the pet.

• Consent Cannot Be Unreasonably Withheld: If the property is suitable for pets, landlords are expected to give their consent.

Introduction of a Property Portal

A new Property Portal will be launched, which will require landlords to register their rental properties. The aim of this initiative is to improve transparency and ensure that tenants can access information about their landlord's compliance with legal obligations.

How It Works:

• Centralised Database: Landlords will be required to register their properties, and tenants will be able to check whether their landlord is complying with the law.

• Enforcement: Local authorities will use the portal to identify non-compliant landlords, making it easier to enforce fines and penalties for those breaking the rules.

Lifetime Deposits

Tenants will soon benefit from a new “lifetime deposit” system, which will allow them to transfer their deposit from one property to the next without having to pay a new deposit upfront. This change aims to reduce the financial strain on tenants when moving between properties.

For Landlords:

• Deposit Transfers: While this is tenant-focused, landlords will still be responsible for holding deposits in a government-approved deposit protection scheme. The lifetime deposit system will simply streamline the process.

End of Blanket Bans

Landlords will no longer be able to impose blanket bans on renting to certain groups, such as those on benefits or families with children. This change is part of a wider effort to combat discrimination in the private rental sector.

Consequences for Landlords:

• Greater Inclusivity: Landlords will need to adjust their rental policies to be more inclusive, ensuring that no group is unfairly excluded.

Conclusion

The new rules for landlords in 2024 represent some of the most significant reforms in decades. While these changes are designed to create a fairer and more transparent rental market, landlords will need to adapt to the new legal landscape. This includes being more diligent with property standards, rent increases, and tenant relations.

To avoid penalties and stay compliant, landlords should stay informed, upgrade their properties to meet energy efficiency standards, and be prepared to justify any decisions they make regarding rent increases or evictions. Additionally, engaging with professional services such as letting agents or legal advisors can help navigate the complexities of these new regulations.