The final stages of Parliamentary process for the much talked about Renters’ Rights Bill are now scheduled for September. Royal Assent so the Bill becomes the Renters’ Right Act is expected in the Autumn. So, what steps should private registered providers (PRPs) be taking now?

Although the Act is likely to pass in September/October, the majority of provisions will not immediately come into force. It is expected that the key changes regarding the abolition of assured shorthold tenancies (ASTs) and the use of section 21 notices will take place in two stages:

• First, for all existing and new tenancies that are not ‘social housing tenancies’. This is expected to be three months after enactment; and
• Second, for ‘social housing tenancies’. Here, the changes are expected to be one year after enactment.

So, the first step PRPs need to take is to clearly identify which (if any) of their tenancies are not ‘social housing tenancies’, i.e. the tenants pay a market rent and properties do not fall within the definition of ‘low cost rental accommodation’ as set out in the Housing and Regeneration Act 2008. Whilst PRPs are likely to have this information for SDR classification purposes, it will be really important moving forward that the classification is clear on all housing management systems. This is because:

• The tenure changes for those tenants will come into force earlier than the majority of the PRP’s stock that is social housing; and
• the Act sets out different provisions for low cost rental accommodation, in respect of the rent review process and a tenant’s right to request a pet in particular.

Communication with residents about the changes will be important. The legislation is in the mainstream press and often the detail and differences for social housing tenancies are not clear within those headlines. Although there is no legal obligation to do so, we are therefore recommending that PRPs let tenants know how the changes apply to them.

For tenants who do not have a social housing tenancy, this will be to let them know at the relevant time, that their tenancy has automatically become an assured periodic tenancy (assuming they currently have an AST and/or fixed term tenancy). For those with a social housing tenancy and particularly if that tenancy is an AST (and assuming you aren’t voluntarily changing the status of the tenancy before this is needed under the legislation), confirming that there are no changes to their tenancy yet and the reasons why, would provide clarity to them and set expectations.

Other next steps should include:

• Updating any tenancy agreement you issue for non-social housing properties to reflect the requirement for these to be an assured periodic tenancy and reflect the new implied terms.
• Identifying which of your policies and procedures will need to be updated. This will be obvious in some cases, e.g. tenure, tenancy management and pets policies, but will also apply to mutual exchange and succession policies. If you have non-social housing stock, this will need to be done in two stages to reflect the staggered commencement of the tenure changes. The policies and procedures will also need to clearly distinguish between the two types of properties, where different provisions will apply. In addition, there will be an impact on any leasehold policy where you have shared ownership stock, as under the Act shared ownership leases will no longer be treated as assured tenancies for the purposes of possession.
• Identifying if you have any ‘stepping stones’ accommodation (housing intended to help tenants transition to independent living) to see if any of the new additional grounds for possession will be relevant. If applicable, consider if the existing tenancy agreements need to be amended now to include necessary wording to allow you to use those grounds for possession in the future.
• If you have management agreement arrangements in place for any stock, checking the terms of the agreements to ensure it is clear which party is responsible for implementing the changes and if any changes are needed to the agreement.
• Reviewing your rent review processes. For properties that are not social housing stock, all rent reviews will be through section 13 of the Housing Act 1988 and require a prescribed notice giving at least 2 months’ notice of any increase. The position is different from social housing stock (where the provisions in the main, reflect the current position).
• Reviewing ongoing AST tenant cases where possession is a possible option to tackle breaches of tenancy. Consider if now is the right time to issue a section 21 notice and/or court proceedings to enable you to rely on the transitional provisions under Schedule 6 of the Act.
• Providing staff training so staff are well equipped to understand the changes and able to answer tenant and leaseholder queries correctly and confidently.

If we can help you through any of these changes and next steps, please do get in touch. In the meantime, if you haven’t already, do subscribe to our Renters’ Rights Hub – a central location for all our updates on the changes. We’ll be publishing further blogs to confirm the enactment and commencement of different sections of the Act.