Renters’ Rights Bill
13 September 2024
An overhaul of the private rented sector had been promised for years by the Conservative Government, yet their proposed reforms in the guise of the Renters (Reform) Bill did not quite make it over the line.
The release this week of the Renters’ Rights Bill (the “Rights Bill”) heralds the Labour Government’s attempt to ‘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’.
In summary, the Rights Bill will:
- abolish fixed term tenancies and require all assured tenancies to be periodic
- end ‘No-Fault’ evictions by abolishing s.21 notices
- introduce new possession grounds for s.8 notices in particular where a landlord wishes to move into or sell the property, however such grounds cannot be used for the first 12 months of a tenancy and four months’ notice must be provided when relying on these grounds
- increase notice periods for certain possession grounds as well as increase the level of rent required to rely on the mandatory possession ground from two months to three
- limit rent increases to once a year to the market rate via s.13 notices and ban rent review clauses in tenancy agreements
- encourage tenants to challenge excessive rent increases through a free process with the First Tier Tribunal. The First Tier Tribunal will not increase the rent to beyond what the landlord initially proposed, and the new rent would apply from the date the of the Tribunal determination
- introduce a new Private Rented Sector Landlord Ombudsman Service which all private landlords in England will be required to sign up to, even if a managing agent is used
- establish a new Private Rented Sector Database that all private landlords will be required to register with
- prohibit rental discrimination against tenants with children and those who receive benefits
- end rental bidding wars by prohibiting landlords from being able to accept any rental bids above the published rental price for their property
- prevent landlords from being able to unreasonably withhold consent for tenant requests to have a pet in the property, but it will allow landlords to require insurance covering pet damage
- introduce the Decent Homes Standard and Awaab’s Law into the private rented sector
- strengthen councils’ enforcement powers to enforce the new rules.
The Birketts view
Many of the points above were dealt with in the previous Renters (Reform) Bill and, at first glance, it may appear to be rather similar. However, the key differences with Labour’s Rights Bill can be seen when you get into the detail and it’s clear that the Rights Bill seeks to go further than its predecessor.
The government guidance on the Rights Bill mentions that the abolishment of fixed term tenancies and s.21 notices will occur in one go with the new rules applying to all existing and new tenancies from the same date. Whether this is the date the Rights Bill comes into force, or a later date is still unclear, and landlords will have to wait to see if a transition period will be provided.
We will be keeping a watchful eye on the Rights Bill as it is due for its second reading on 9 October 2024, and we will be primed to report further on the bill and its wide-reaching implications for this sector.
For a more detailed insight into the Rights Bill, please sign up to our webinar on 14 October 2024 at 12.30 which will be hosted by Alice Harris and Ellie Mullins.
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Ellie Mullins
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Alice Harris
The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article please contact the author in the first instance. Law covered as at September 2024.