Many landlords may not realise it, but within 18 months those operating in England and Wales will have to register with a redress scheme, be recorded on national database and embrace a new, portable ‘lifetime deposit’ for tenants in order to be legal.
However, this is assuming that the government’s renting reform White Paper, which is being published this Autumn, turns the proposals outlined in the Queen’s Speech into legislation as planned, most likely in early 2023 but maybe sooner.
This would usher in the biggest changes to the private rented sector for over 30 years, including the much-discussed ban on Section 21 notice evictions, according to the Ben Beadle, chief executive at the National Residential Landlords Association (NRLA), who added: “We urge the Government and all others in the sector to use the time they now have to ensure that the reforms are fair and workable for both tenants and landlords.”
There are also concerns about the government’s ‘lifetime deposits’ proposals which, although laudable, are likely to be complicated to implement. “Whilst we will work constructively on the detail of the proposal, it is vital that the new system in no way discourages landlords from making valid claims for damage to properties”, said Beadle.