The Renters’ Rights Bill is currently making its way through parliament, with its second reading completed in the House of Commons on 9 October 2024.
Although there is no firm timeline for when the proposed legislation will be introduced, it is expected that the Bill will come into force around April next year.
The Bill is the culmination of various long-standing promises to reform the private rented sector in England and Wales and it is hoped that it will “level decisively the playing field between landlord and tenant by providing renters with greater security, rights and protections and cracking down on the minority of unscrupulous landlords who exploit, mistreat or discriminate against tenants.”
It brings with it seismic changes for landlords and tenants alike.
In this blog, our experienced Landlord and Tenant solicitors outline what landlords need to know about the Renters’ Rights Bill.
What is the Renters’ Rights’ Bill?
The Renters’ Rights Bill will introduce various reforms in the private rental sector in England and Wales.
The Labour government hopes that the Bill will “transform the experience of private renting” and “improve the current system for both the 11 million private renters and 2.3 million landlords in England”.
It includes many features of the previous government’s Renters’ (Reform) Bill which failed to receive royal assent before parliament was dissolved ahead of this summer’s general election and will bring into force many changes that were first mooted in 2019.
“Reform of the sector is long overdue, and we will act where previous governments have failed. While the majority of landlords provide a good service, the private rented sector currently provides the least affordable, poorest quality and most insecure housing of all tenures,” said the Ministry of Housing statement in the background to the Bill.
Why is the Renters’ Rights Bill being introduced?
The number of households renting in England and Wales has more than doubled since 2001, the latest census has revealed, with nearly one in five households in England now living in the private rented sector.
Rents have also increased dramatically, with data showing that the total amount of rental costs paid by tenants in the UK has increased steadily over the past ten years. In 2013, the total amount of rental expenditure paid by tenants in the UK was around £70bn, growing to approximately £9bn in 2023.
However, conditions have got worse, with many tenants complaining about properties failing to meet basic standards, unfair rent increases, and an increase in ‘no-fault’ evictions, where landlords ask them to vacate a property with minimal justification and little notice.
The Renters Rights’ Bill intends to make the private rental system fairer and improve standards.
What are the new rules for landlords under the Renters’ Rights Bill?
The Renters’ Rights Bill introduces changes that will affect landlords in the following areas:
No-fault evictions. Currently, landlords can use section 21 of the Housing Act 1988 to ask tenants to move out of a property without giving a reason (known as ‘no-fault evictions’). Tenants have two months to vacate the property before a landlord can apply for a court order to evict them.
This can create instability and uncertainty for tenants. Unscrupulous landlords also use section 21 evictions as an excuse to replace tenants and increase rents.
Under the new rules, no-fault evictions will be scrapped, and landlords must provide clear and expanded possession grounds to reclaim properties.
Tenancies. The new Bill removes fixed-term assured tenancies. All tenancies will be periodic, with tenants able to stay in their home until they decide to end the tenancy by giving two months’ notice.
Grounds for possession. The Bill includes strengthened rights to reclaim properties when it’s necessary, for example to sell or move in. Tenants will be granted a 12-month protected period at the beginning of a tenancy, during which landlords cannot evict them to move in or sell the property. Landlords will need to provide four months’ notice when using these grounds.
Rent arrears. The legislation extends the notice period for rent arrears from two to four weeks. Landlords can evict tenants who have been in at least two months’ rent arrears three times in the previous three years.
Rent in advance. Limits will be placed on how much rent landlords can ask for in advance and will need to repay any advance rent paid if a tenancy ends early.
Decent Homes Standard. New minimum standards will be applied to the sector to ensure properties are safe and secure.
Awaab’s Law. The Bill sets clear expectations about the timeframes within which landlords in the private rented sector must make homes safe where they contain serious hazards, such as mould or damp. This already applies in social housing and is named after two-year-old Awaab Ishak who died in December 2020 from a respiratory condition caused by mould in his Rochdale flat.
Publish asking rent. Landlords and agents will be required to publish an asking rent for their property and it will be illegal to accept offers above this rate.
Rent increases. Landlords will only be able to increase the rent once a year, with any increase being aligned with market rates.
Database. A new database will be created to bring together key information for landlords, tenants, and councils. Landlords must register their properties and themselves on the database or face a penalty.
Discrimination. The Bill includes various anti-discrimination measures that makes it illegal for landlords and agents to discriminate against prospective tenants who have children or receive benefits, for example.
New ombudsman. A new private rented sector landlord ombudsman will be introduced to provide quick, fair, impartial and binding resolution for tenants’ complaints about their landlord.
Pets. Landlords must consider tenant requests to keep a pet and cannot unreasonably refuse.
Read the full guide to the Renters’ Rights Bill on the government’s website by clicking here.
Solicitors for Landlords Wisbech and March
The Renters’ Rights Bill is expected to have a significant impact. Landlords of residential properties are encouraged to seek legal advice at an early stage to ensure they are compliant with the expected new rules when they are introduced.
Bowsers Solicitors provide legal advice for landlords in Wisbech, March and across Cambridgeshire, Lincolnshire and Norfolk.
Our experienced solicitors have experience in all aspects of issues that arise during the lifecycle of a landlord and tenant relationship, including conveyancing on buy-to-let properties, drafting tenancy agreements and advising on dispute resolution.
Whether you are a first-time investor or an experienced landlord, we have the facilities and expertise to assist you.
If you are a landlord looking for legal advice about how the Renters’ Rights Bill will affect you or want to speak to our buy-to-let solicitors about another issue, get in touch with us today.
Please contact our experienced lawyers and chartered legal executives today on 01945 583194 (Wisbech) or 01354 652606 (March), or email reception@bowsers.co.uk. Alternatively, you can fill in our contact form.
