The newly elected government has wasted no time in publishing its plans for the Renters’ Rights Bill, with the legislation beginning its Parliamentary journey on Wednesday 11th September. The news will be hugely welcomed by renters, who have had their patience tested by long-awaited reform to the private rental sector.
Previously on offer for renters was the Renters’ (Reform) Bill, first introduced in 2023 under Rishi Sunak. Nevertheless, like many other pieces of legislation, the bill fell victim to the parliamentary wash-up period, a consequence of the 2024 general election. Some commentators have also pointed out active resistance to the bill from landlord MPs within parliament as a potential cause for the bill failing to be passed within the 5-year Parliament.
Despite this, hope for renters is not lost. The Renters’ Rights Bill resurrects several features of the Renters (Reform) Bill, such as a ban on no-fault evictions. It also promises to further strengthen the rights of renters and offer greater clarity to landlords. The government have signalled their desire to ensure that the bill progresses through parliament as quickly as possible, with Housing Minister Matthew Pennycook stating: “We hope (the bill) will make very quick progress through the House of Commons and that we have that new tenancy system in place within the first half or around summer next year.”
Let’s take a look at the Renters’ Rights Bill in more detail, focusing on the biggest aspects of the bill.
Abolition of section 21 evictions
A major feature of the Renters’ Rights Bill is the abolition of the controversial section 21 evictions. Currently, landlords are able to evict tenants after a fixed term tenancy ends, or during a periodic tenancy in which there is no set end date.
However, the abolition of section 21 evictions will simplify the private rental sector and make all assured tenancies periodic. This will give tenants more security by having no set end date, something which the policy also aims to enable tenants to challenge poor practise and unfair rent increases without the fear of being evicted by their landlords. You can find out more about section 21 notices here.
Furthermore, possession grounds will be clearer and expanded, to ensure that landlords can regain possession of their property when this is reasonable.
Banning bidding wars
The ability of renters to challenge above market rents will also be strengthened by the Renters’ Rights Bill.
At the moment, high demand for properties can often lead to situations where landlords set an advertised rate for their rental property but subsequently create an artificial bidding war by accepting the highest offer for a rental property.
This practise will be banned by Labour, with landlords and agents forced to set an advertised rate which they must stick to. The practise of accepting an offer above the advertised rate will be illegal.
Better quality homes
Both the Decent Homes Standard and Awaab’s Law are designed to ensure that rental homes are up to standard.
The Decent Homes Standard currently only applies to social housing, however this standard will now also apply to private housing. A privately rented property which fails to meet DHS standards will be open to enforcement by the local council. For example, they will have the ability to issue an improvement notice within a set timeframe. Landlords who fail to comply to the enforcement notice may be subject to a civil penalty or criminal prosecution. This will aim to ensure that private homes are safe and hazard-free
Follow its application to social housing last year, Awaab’s Law will also apply to private housing. This law will set new requirements to address issues such as damp and mould within a specified time period. Landlords who do not comply will be open to enforcement action in the courts by their tenants for breach of contract.
Rental discrimination
The new bill will make it illegal for landlords to discriminate against people who are in receipt of benefits or have children. While this will mean that overt practises such as ‘No DBS’ adverts will be banned, it will also aim to prevent more discreet means of discrimination in which landlords or letting agents may favour someone not in receipt of benefits or with children.
While landlords will have the final say, including carrying out referencing checks to ensure that the potential tenants can afford said property, they will not be able to make the decision based on the prospective tenant having children or being in receipt of benefits.
Private rented sector database
The aim of a private rented sector database is to benefit the system as a whole, landlords and tenants alike. For example, to offer a system which allows tenants to see whether landlords are compliant with regulations. For landlords, they will need to be registered on the database in order to use certain grounds of possession, as well as highlighting those are compliant.
Furthermore, it will seek to give councils the ability to target enforcement activity where it is most needed.
Giving tenants the right to request a pet in their property
The bill also gives tenants a greater opportunity to live with their pets by giving them the right to request a pet in their property. At the moment, under the Housing Act 1988 landlords are not obliged to allow tenants to keep a pet in their rental property.
The Renters’ Rights Bill changes this by stating that when a tenant requests a pet, a landlord cannot unreasonably decline their request. Tenants will also have the ability to challenge what they deem to be an unfair decision. Landlords will be reassured by the fact that the bill will include the ability for them to ask for insurance which covers pet damage.
We covered this topic in more detail in an article earlier this year which looked at whether landlords have to say yes to tenants when they request a pet. You can read that article here.
Private Rented Sector Landlord Ombudsman
Introduce a new private rented sector landlord ombudsman to provide resolution for complaints by tenants about their landlords as an alternative to court. Tenants will be able to use the free services to complain about a landlords’ behaviour or actions. The powers of the ombudsman could result in actions ranging from the issuing of an apology to the tenant, up to having to take remedial action and/or issuing compensation.
All private landlords in England with assured or regulated tenancies will be required to join, even if they use a managing agent.
Our final thoughts on the Renters’ Rights Bill
The Renters’ Rights Bill is at the beginning of its legislative journey and will be subject to scrutiny and potential amendments before it becomes law. Nevertheless, the large majority within Parliament for the new government, and their prioritisation of the bill means that there should be light at the end of the tunnel for renters. Whether it will be welcomed by landlords is a separate issue, and some will be anxious about whether they have enough time to adapt to the reforms.
Whether you are a renter, landlord, or homeowner, Lisa’s Law will keep you up to date with any of the big developments when it comes to the Renters’ Rights Bill, as well as other big property law updates. Subscribe to our various platforms today.
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