The newly introduced Renters’ Rights Bill includes an end to Section 21 no-fault evictions, new grounds for landlords to regain possession of their properties and an end to fixed term tenancies.
The recently published Renters' Rights Bill promises sweeping reforms for the private rental market, aiming to offer greater protections for tenants, introduced by the Government on 11th September 2024. To help you understand what to expect, we’ve written a comprehensive overview of the bill's key proposals and their implications for renters and landlords.
These changes bring significant shifts that landlords must prepare for. Although the bill is still progressing through Parliament and is subject to amendments, it is expected to become law by mid-2025.
The Second Reading, where MPs will debate the bill, is scheduled for Wednesday 9th October 2024, and from there, the bill will continue its journey through Parliament.
Key reforms in the bill
Abolition of Section 21 ("No-Fault" Evictions)
The most impactful reform is the abolition of Section 21, which currently allows landlords to evict tenants without providing a reason. Once the bill passes, landlords will only be able to evict tenants using newly proposed Section 8 Grounds, such as rent arrears or selling the property. Landlords will need to familiarise themselves with these new grounds and the updated possession timelines to regain their properties.
Possession Grounds Update
A one-year waiting period will be required before a landlord can repossess a property to either sell it or move in a family member.
End of Fixed-Term Tenancies
All tenancies will shift to monthly periodic tenancies, ending the use of fixed-term agreements. This will apply to both new and existing tenancies, with no transitional phase for current contracts. To end a tenancy, tenants must give two months' notice, and landlords are restricted from serving notice during the first 12 months unless the tenant is at fault.
Rent Increases
Rent increases will be capped at once per year, and landlords must give tenants two months' notice of any increase. The increase must align with market rates, which can be contested by tenants through a First-tier tribunal if they believe the increase is excessive. This gives tenants greater stability in budgeting, while landlords must ensure rent adjustments are fair and justifiable.
Landlord Ombudsman
A mandatory Landlord Ombudsman Service will be introduced, and landlords will be required to join. This service will allow tenants to lodge complaints about their landlord, with binding resolutions offered. The aim is to provide tenants with a fair and impartial recourse to address grievances.
Private Rented Sector Database
All landlords must register themselves and their properties in a new Private Rented Sector Database. This will help ensure that landlords comply with their legal obligations and responsibilities, and the database will be accessible to local councils for enforcement purposes.
No Blanket Rental Discrimination
Landlords will not be able to refuse tenants solely because they receive benefits or have children. Any restrictions in mortgages, superior leases, or insurance policies requiring such discrimination will be rendered ineffective. Decisions to refuse a tenant based on these grounds will need case-by-case justification.
Prohibition of Rental Bidding
The bill seeks to curb rental bidding wars by prohibiting landlords from accepting offers above the advertised rent. Landlords and letting agents will be required to publish a specified rent, which should reflect the property’s market value.
Pets in Properties
Tenants will have the right to request permission to keep pets, and landlords can no longer unreasonably refuse. While landlords can require tenants to hold insurance or take responsibility for pet-related damages, blanket bans on pets will no longer be allowed.
Decent Homes Standard and Awaab’s Law
The Decent Homes Standard, previously applied to social housing, will now cover the private rental sector. This standard sets minimum requirements for properties to be safe, habitable, and free from serious health hazards. Coupled with Awaab’s Law, landlords will be required to address serious hazards such as mould and damp within a strict timeframe or face penalties.
Rent Repayment Orders
The bill also strengthens Rent Repayment Orders, expanding their applicability and coverage. New offenses in the bill could trigger repayment orders, increasing compliance and accountability across the rental sector.
Final thoughts
The Renters’ Rights Bill represents a significant shift in the rental landscape. The bill’s final form is expected by mid-2025 but is still subject to amendments. While it offers increased protections for tenants, it also introduces substantial changes for landlords, particularly around evictions, rent reviews, and tenant rights.
If you require further guidance in adapting to these changes, please feel free to contact your local Winkworth office. We’re here to support landlords and renters under the new legal framework.
