This is the next article in our short series looking at the upcoming proposed Renters’ Rights Bill which are aimed at understanding the important legislative reforms put forward by the Bill. In this article, we discuss two significant components of the Bill; the establishment of a Private Rented Sector (“PRS”) Database and the extension of the Decent Homes Standard (“DHS”) to private rentals.
Private Rented Sector (PRS) Database
The intention of the Bill in creating a PRS Database is two-fold: to assist landlords in understanding and complying with their legal obligations, and to provide greater information to tenants that will help them to make more informed decisions when entering into a tenancy agreement.
It is anticipated that all landlords of assured tenancies will be required to register themselves and their properties on the PRS database. Registration will be a mandatory and legal requirement. It is anticipated that registration will be an online process, with a small fee payable to register (the exact amount of which is yet to be confirmed). The PRS database will be accessible to tenants, both prospective and current, as well as Local Authorities. Landlords have expressed concern regarding their information being publicly available; however, whilst the exact amount of information that will be published is still under determination, it is not envisaged that all data will be.
It is not yet clear what exactly the PRS Database will look like or how it is going to work in practice, but landlords who do not comply with registration, and/or the information requirements, can ultimately expect penalties of a financial nature. Landlords will also be prevented from seeking possession of their property on certain grounds if they find themselves in breach of their duty to register with the PRS database.
Decent Homes Standard (DHS)
Currently, the DHS sets the minimum standards for the condition of social homes. The intention of the Bill in applying the DHS to the private rented sector is to hold landlords accountable for the condition of their rental properties, and to ensure that tenants benefit from safe and decent homes.
Under the DHS, landlords will have to make sure that their residential properties are in a reasonable state of repair, have reasonably modern facilities, and provide a reasonable degree of thermal comfort.
Whilst it is hoped that most landlords will experience minimal impact from this change, on the basis that the housing they provide already meets the DHS requirements, those who fail to ensure that their property meets the DHS requirements might face enforcement action from Local Authorities, and similarly, significant financial penalties.
The introduction of the PRS Database and extension of the DHS to the private rented sector, whilst aiming to provide tenants with greater transparency and standards of living, clearly carry significant implications for landlords. Landlords will have to be particularly mindful of their compliance requirements, their maintaining of accurate database records and the standard of the properties which they market for rent.
The next article in our series will look at rent review changes and the reforms to Rent Repayment Orders.
Read the previous articles:
- Navigating the Renters’ Rights Bill
- Renters’ Rights Bill: The changes at a glance
- Renters’ Rights Bill: Obtaining possession
The above article is for illustrative purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any part of the information given.
Furthermore, the information contained is accurate and up to date as of the date of publication. Readers should be aware that legislative frameworks may have been amended since the original date of publication.