Changes in Legislation in the Lettings Market
There are changes in legislation in the lettings market that will be coming into effect in May 2023. As we know, the rental market has gone through several transformations in the past decade. To further improve the quality and safety of rental properties, the government has made some significant changes in legislation.
One of the most prominent changes is that the tenant's rights are set to be expanded. The Tenant Fees Act of 2019 saw letting agents being banned from charging tenants for essential services such as referencing and administration fees. The new legislation to be introduced in 2023 is set to ensure that tenants are provided with safer and more habitable homes.
In the coming year, landlords and letting agents will be required to make certain property improvements, especially those that deal with safety and environmental factors. Properties will need to meet new standards in areas such as ventilation and the quality of electrical systems.
In addition to these standards, properties that are energy inefficient and those that have poor environmental performance will not be allowed on the market. Therefore, landlords must ensure their properties meet new standards regarding energy efficiency to ensure that their properties remain rentable in the market.
Another critical change that landlords and agents should note is the ban on no-fault evictions or section 21 notices. Tenants can currently be evicted without fault within a notice period of 2 months, and they have limited recourse for action. The government has listened to the numerous calls for change, and it is expected that landlords and agents will only be able to give notice when there are concrete reasons or change of circumstances.
These changes may appear challenging, but it is imperative that landlords, agents, and tenants remain well-informed about the changes and the possible implications. By ensuring that rental properties are up to standard, tenants can have a better living environment, landlords can avoid significant penalties and reputation damages, and letting agents can provide the best possible services.
To summarize, the lettings market is changing, and as such, landlords, agents, and tenants need to stay up to date with the new legislation that is set to come into effect in May 2023. We expect to hear more when the government announces its full legislature changes on the 24th May and we will update this information once released, however in the meantime if you have any questions on lettings and investments please feel free to contact our advisory team using the form below who are ready to answer all your queries: