HHSRS Checklist
There are 29 hazards to remember and we have one checklist to rule them all
The Renters' Rights Bill is likely to reach the House of Commons before Christmas after passing through the Lords. This is in line with the expectation of the bill passing into law, at least partly, before summer 2025.
David Smith of JMW Solicitors gave us an insight into how much will change and what to expect.
Rent increases
It's unlikely the rental market will look the same following the implementation of the Renters' Rights Bill, David explained.
He said, "What's dangerous about that is if we don't have the same landlords letting the same property types, that may mean we have groups who are no longer being served."
Students are among the groups most at risk of their property redress scheme (PRS) provision disappearing. This is because students will flock back to their parents' homes during the summer. By eliminating fixed-term tenancies, landlords of student tenancies will find it much more difficult to make a profit as a result.
This also is true for certain types of tenants who are less well-off but aren't below a certain threshold to warrant Universal Credit. David said that there are some landlords who specifically target the Universal Credit market, particularly in areas where the payment is quite high compared to other rents.
"There are areas around and out of London where that happens," David added. "That often leaves people who aren't entitled to UC out in the cold, so there will be categories of people that are being currently served that may find they're not being well-served as the market adjusts. There has been quite interesting evidence of specific parts of the country bucking the overall trend. There are also specific parts of the country where landlords are buying in significant numbers."
The NRLA’s average landlord now owns four properties, whereas only a few years ago, it was just over one. This means there are now fewer landlords in the sector, but that the landlords remaining own more property.
Learn more about rent increases in our Renters' Rights Bill Explainer Guide.
Decent Homes Standard
Previously applied to social housing, the Decent Homes Standard will be more directly relevant to the private rented sector. However, understanding what that means can be tricky. David related it to the Housing Health and Safety Rating System (HHSRS), which is focused primarily on statistics and complex risk-based analysis. Because of this, not all local authorities or landlords understand it, therefore it's difficult to conclude whether a property is up to standard without doing a full assessment.
Bringing back the Decent Homes Standard means the property sector is "turning the clock back" to a series of fixed requirements that must be met, David said. This means HHSRS will continue to operate and only impact a property manager if the local authorities have inspected a property and concluded it's not up to standard.
Meanwhile, the Decent Homes Standard will be added to the HHSRS. A property must meet the DHS all the time, meaning if it is inspected and it doesn't meet that minimum standard, the property manager or landlord will be penalised.
He added: "The danger here is that local authorities are going to find higher level hazards for their own separate reasons, but which will also then intersect with the Decent Home Standard. I suspect there'll be a lot more challenges and debate around the operation of the whole thing."
It will most likely include checking for damp and mould, and basic structural soundness.
Awaab's Law
Stemming from the death of Awaab Ishaak due to mould exposure in a social housing property, Awaab's Law seeks to address this problem. Prior to the 2024 General Election, the previous Government introduced a provision in the Social Housing Regulation Act regarding this but this only applied to social housing landlords. However, this is still not fully enforced because the Government launched a consultation to pass further regulations. Just as that consultation finished, the General Election was called and this process paused. This means none of this is currently in force.
The Government has said it wants to apply Awaab's Law to the private rented sector. David added that the Government is likely to re-run the consultation for the private sector.
What is required if there is a hazard in a property which creates a risk to the occupier?
The property manager will have two weeks to carry out an initial investigation. This doesn't necessarily require the property manager to perform this in person and can be done remotely through video triage.
Initial investigations must be conducted within two weeks of becoming aware of the hazard. This should be followed by the provision of written summaries of findings and repairs must be carried out after that.
Find out why video maintenance is the best way to supplement in-hours repairs.
Rent Increases and tribunal process
Property managers must use a Section 13 notice to increase rents, and tenants will have two months to contest them.
Hear more from David Smith in our webinar recording on Renters' Rights and the first 100 days of Labour
David said: "What's interesting about this is that Section 13 Application Tribunal is free and always has been. They will remain free. There's been quite a significant increase between the 2022/23, and 2023/24 years in terms of the number of applications. I expect that will go up. The reality is, lots and lots of tenants don't contest Section 13 notices because they only have a month to do so and it's very strict, but that's being increased to two months, so they get longer to contest it.”
He added that notices will become much more explicit about the right to contest. If there is an increase in these notices, tenants will be more likely to contest them which will lead to a rise in tribunal work and longer wait times for hearings.
Tenants may benefit from the new system, as rent increases cannot be backdated, and tribunals cannot increase rents above the notice level.
Final thoughts
Property managers must be prepared to navigate these new regulations and update their practices. They should also be mindful of potential changes in the tenant market, as certain groups may face challenges in finding suitable accommodation.
Prepare your agency for the changes ahead by ensuring you're compliant in Fixflo.
Gemma Nettle
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