Key Proposed Amendments
- Fixed-Term Tenancies – Landlords can still offer fixed-term tenancies of up to 12 months, with the option to extend after 4 months.
- Student Housing – Student tenancies will remain fixed-term to provide certainty for both tenants and landlords.
- Small Landlords & Evictions – Landlords with fewer than 5 properties can still issue Section 21 notices (no-fault evictions).
- Eviction Grounds – Courts will have the discretion to decide eviction cases.
- Minimum Tenancy Period – Tenants must stay for at least 6 months before they can give notice to leave (instead of 2 months under the current bill).
- Delaying Section 21 Ban – The ban on no-fault evictions will only take effect after the government confirms that the court system can handle the changes.
- Advance Rent Payments – Tenants (especially overseas students) can agree to pay up to 12 months’ rent upfront if both parties agree.
- Rent Increases – In the first 4 years of a tenancy, rent increases will be linked to an index rather than market rates.
- Rent Appeals – Tenants will no longer be able to challenge rent increases automatically through a Rent Tribunal.
- Faster Rent Increases – Delays in rent increases due to appeals will be removed, preventing tenants from using appeals to postpone higher rent.
- Guarantor Requests – New restrictions will limit when landlords can ask tenants for a guarantor.
- Agent Training – Letting agents will need to meet new training and qualification standards.
- Pet Deposits – Landlords will have more security by allowing higher deposits for tenants with pets.
- Pet Insurance – There is a call for better insurance products to cover potential pet-related damages.
- Rental of Unsold Properties – Homes listed for sale should be available for rent after 6 months (instead of 12 months as currently proposed).
- Asylum Seeker Housing – Government-provided housing for asylum seekers will be required to meet Decent Homes Standards.
These proposed changes will be debated in the committee stage (date yet to be announced). We’ll be closely following the discussions to see how the bill evolves. If you want to read the full details, you can find them here.