The procedure to be followed when setting up a new tenancy before the Renters Rights Bill comes into force
December 4, 2024
I have had a lot of people ask me what they should do when setting up a new tenancy, bearing in mind that the Renters Rights Bill is due to change the rules regarding tenancies and tenancy agreements.
Student landlords are particularly concerned about this.
Should you include an explanatory clause in your tenancy agreement?
Some people have suggested that a clause be inserted in new tenancy agreements stating that they may be subject to change later, but for the moment, I don’t think this will be necessary.
At the time of writing (4 December 2024), we do not know what the new rules will be.
There is also a question mark over the new rules for student lets as many legitimate concerns have been raised regarding the Renters Rights Bill proposals, which the government has promised to ‘listen to’.
So it is entirely possible that there could be changes in the rules for student lets. I do not think it appropriate to include a clause about something we don’t know about!
The new legislation, as all legislation does, will include transition rules for existing tenancies and we will just have to follow those rules once we know what they are.
Guidance will be provided to Landlord Law members at that time.
Until more is known, carry on using your existing documentation and procedures. Although, if you use a ‘bills included’ agreement, you may want to consider changing this, as discussed in our recent blog post.
A suggestion for now:
In the meantime, the most I would suggest doing is including a note in your ‘house rules’ or giving tenants a letter/email saying something along the following lines:
As you may be aware, a new bill, the Renters Reform Bill, is making its way through Parliament which will affect the terms of your tenancy once it comes into force.
At the moment, we do not know precisely how this new law will affect existing tenancies, but it is likely that your tenancy will convert from a fixed-term tenancy to a periodic tenancy. The legislation may also prescribe new clauses which will apply to existing tenancies.
We do not know when the Renters Rights Bill will become law, although it is expected to be by the summer of 2025.
Once we have more information about how this new law will affect your tenancy, we will let you know.
However there is no need to do this, and if you think it will worry your tenants you may feel it is best just to wait until things are clear and speak to them then.
I will post here again when I know more.
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