Renters Reform: NRLA pushing for vital amendments to notice periods
Challenging proposals to allow tenants to give notice as soon as they take on a new tenancy will be a key part of the NRLA’s ongoing rental reform campaign.
Under the current plans tenants will be allowed to give two months’ notice at any point during the tenancy, meaning tenants could sign an agreement then immediately give notice – a practice some landlords fear could turn the PRS into ‘Airbnb-lite’.
With the abolition of fixed terms introduced to give tenants greater security when it comes to the length of tenancy, it could be argued this just wouldn’t happen; yet data from Grainger estimates that around 10% of the tenants interested in their properties in London wanted stays of two months or less.
For landlords the lack of certainty around tenancy length could potentially lead to more void periods – and raise costs for insurance or mortgage products – with charges based on a minimum six-month term. There would also be additional costs associated with re-letting.
There could also be negative implications for tenants. Rents would be expected to rise to account for the lack of certainty. There is also an additional concern for tenants in a HMO, where one tenant serving notice ends the tenancy for all.
Tenant turnover is traditionally higher in such properties, so other tenants may be forced to leave or renegotiate their tenancies more frequently.
What does the NRLA want?
The association has no issue with the length of the notice period per-se, but is asking for an amendment that would prevent tenants from giving notice within the first six months of a tenancy, to give landlords some certainty of tenure.
This would prevent the property being used for short term lets, give tenants a reasonable period of security, and give lenders and insurance brokers confidence about the length of the stay.
Additional amendments
The NRLA is also calling for changes around student lets – and to protect landlords from illegal subletting.
Student ground
A new mandatory possession ground (4A) has been added to the Bill which allows student landlords to seek possession where:
• All tenants are students or are expected to be students at the start of the tenancy; and
• The property is a house in multiple occupation (HMO); and
• The notice is at least two months long and requires possession between June 1st and September 30th.
However the NRLA believes restricting the ground just to HMOs is wrong, and that it should be extended to cover one-or two-person student dwellings, with such homes representing as much as a fifth of the student market in some areas.
Unlawful sublets
Earlier this year, the NRLA successfully intervened in an important court case around rent-to-rent to protect landlords who had let the property to a rent-to-rent company without their knowledge.
However under the bill as it stands a superior landlord will be potentially liable for the behaviour of the rent-to-rent company.
The association thinks this is wrong and that any compensation owed to a tenant should come from their immediate landlord (the rent-to-rent firm). With this in mind it is seeking an amendment that would mean rent repayment orders follow the directors of rent-to-rent companies. This prevents them from dissolving their companies to avoiding financial penalties.
How are amendments made?
The NRLA has already seen a number of changes introduced to the Bill based on our campaigning work. These include a possession ground for most student landlords, and changes to make anti-social behaviour claims easier to achieve.
The Bill has just passed through Committee Stage and, in the New Year, will reach Report Stage.
This will allow other MPs and Lords to table amendments.
In is now approaching a number of MPs and Lords to explain the potential consequences of certain aspects of the Bill – asking them to table amendments on our behalf.
More information
To keep updated on the progress of the Bill and these amendments keep and eye on our news site and e-newsletter and follow us on social media.
