The new Renters’ Rights Bill could be a game-changer – and not in a good way. This bill, which aims to shake up the buy-to-let market, goes further than many expected and could send shivers down a landlord’s spine.

More Than Just a Ticking Box

The bill isn’t just a rehash of the Conservative government’s abandoned plans. While some measures are familiar, like the creation of a landlord database and the right for tenants to have pets, others are tougher than what many hoped for.

Goodbye, ‘No Fault’ Evictions?

One of the biggest changes is the abolition of ‘no fault’ evictions (Section 21). This means you can’t simply kick tenants out without a good reason. But there’s a catch – the government wants to introduce a new mediation system to resolve disputes before they reach court. So, you might find yourself stuck in mediation for months, with no guarantee of a quick resolution.

Tenants Have the Power

All tenancies will become periodic, meaning tenants can give you two months’ notice to leave, anytime, from day one. You can still end a tenancy if you want to sell or move in yourself, but you’ll need to give four months’ notice.

Say Goodbye to Bidding Wars

The bill also aims to stop rental bidding, making it illegal to accept offers above the advertised price. This could hit your profits if you thought you could get a higher price than the asking rate.

Are Landlords Running for the Hills?

Rightmove, the property website, says that a record proportion of properties currently on sale were previously rentals – 18 per cent compared to 8 per cent in 2010. This suggests that some landlords are selling up, but the experts say it’s not a mass exodus.

The Taxman’s Shadow

Another reason landlords might be selling is the looming threat of a capital gains tax (CGT) increase. The government is desperate for cash, and CGT is a prime target. If they hike the tax, it could be a major blow for buy-to-let. While this change isn’t confirmed, it’s a serious concern for those who are already thinking of selling.

The Verdict: Time to Sell Up?

Whether these changes will lead to more landlords selling and higher prices remains to be seen. But one thing is clear – the new Renters’ Rights Bill doesn’t make buy-to-let investing look any more appealing. With rising costs, taxes, and stricter legislation, some landlords might decide that it’s time to cut their losses and get out of the rental market.