07/11/2024
Renters’ Rights Bill
On 11 September 2024, the Renters’ Rights Bill was introduced in the House of Commons. This bill follows the Conservatives’ Renters Reform Bill, which did not complete its passage through parliament before the General Election.
The bill is similar to that proposed by the previous government but, as pledged in Labour’s manifesto, it includes further measures.
The bill applied to England only and can be viewed here: https://bills.parliament.uk/bills/3764
Overview of the Renters’ Rights Bill:
- Abolish section 21 (no fault) evictions – New system will be implemented in one stage, giving all tenants security immediately. Landlords will also benefit from more straightforward regulation and clearer and expanded possession grounds;
- Ensure possession grounds are fair to both the landlord and tenant – The bill introduces new safeguards for tenants, giving them more time to find a home if landlords evict to move in or sell, ensuring unscrupulous landlords cannot misuse grounds. Landlords will be able to recover their property when reasonable.
- Provide stronger protections against backdoor eviction – Ensures tenants are able to appeal excessive above-market rents, which are purely designed to force them out. As now, landlords will still be able to increase rents to market price for their properties and an independent tribunal will make a judgement on this, if needed.
- Removal of 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 2 months’ notice.
- Introduce a new Private Rented Sector Landlord Ombudsman – To provide quick, fair impartial and binding resolution for tenants’ complaints about their landlord.
- Private Rented Sector Database – Will aid landlords to understand their legal obligations and demonstrate compliance.
- Give tenants strengthened rights to request a pet in the property – Landlord must consider and cannot unreasonably refuse but can require pet insurance to cover any damage to their property.
- Apply the Decent Homes Standard and ‘Awaab’s Law’ to the sector, both of which aim to make homes safer.
- Make it illegal for landlords and agents to discriminate against prospective tenants in receipt of benefits or with children – Help to ensure everyone is treated fairly when looking for a place to live.
- End the practice of rental bidding – Landlords and agents will be required to publish an asking rent for their property and it will be illegal to accept offers made above this rate.
- Strengthen local authority enforcement – Expanding civil penalties, introducing investigatory powers to councils to report on enforcement activity.
- Strengthen rent repayment orders – Extend to superior landlords, doubling the maximum penalty and ensuring repeat offenders have to repay maximum amount.
There have been mixed reactions to the bill, which fears that a heavier compliance burden for landlords will only serve to increase rents.
Furthermore, it appears that the ban on section 21 evictions will come into effect on the day the bill received Royal Assent. The Conservatives previously said this measure could not be implemented until the court system was ready and there are concerns surrounding how the courts will cope once the bills becomes law.
Immediate impacts could be a noticeable wave of section 21 evictions before they are outlawed.
For tenants, the bill offers increased protection and goes further than the previous government’s bill by applying the Decent Homes Standard and Awaab’s Law to the sector.
For many, regardless of their opinions on the contents of the bill, it gives them clarity. The sector has experienced a long period of uncertainty and the bill’s introduction can be viewed as ‘the beginning of the end’.
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