The Renters’ Rights Bill, introduced to Parliament on 11 September 2024, could represent a significant shift in the legal landscape governing rented homes in England.
While much attention has been directed towards its implications for private landlords and tenants, it’s essential for social housing landlords, to understand the Bill’s proposed provisions and the potential impact on your operations.
Although the Bill is yet to be passed, it’s our opinion that it likely will be, and it has already passed many of the prerequisites for leaving the House of Commons and progressing to the House of Lords.
As such, we think it’s worth getting ready for its changes now, rather than later.
Abolition of Section 21 ‘no-fault’ evictions and revised grounds for possession
One of the cornerstone reforms in the Bill is the proposed abolition of Section 21 ‘no-fault’ evictions.
This change could mandate that all tenancies become periodic, effectively removing your ability to end tenancies without providing a specific reason.
This reform would require a thorough review of your tenancy agreements and eviction procedures to ensure compliance with the new legal framework if it becomes law.
The reliance on Section 21 notices may no longer be an option, meaning you’d need to shift towards alternative legal grounds for possession.
The Bill also proposes revised grounds for possession, with stricter requirements that would compel you to provide evidence to support any eviction claims.
In other words, evictions would need to be based on specific grounds, such as rent arrears, antisocial behaviour, or an intention to sell the property.
You’ll find that your need to provide evidence increases, meaning you’ll need good record-keeping and documentation to substantiate any possession claims.
The transition to periodic tenancies and the potential removal of fixed-term assured tenancies could also impact your tenancy management strategies.
Increased tenant flexibility under periodic tenancies might lead to higher turnover rates, requiring you to adopt more dynamic and responsive tenancy management practices.
You’ll need to be prepared to handle the administrative and operational challenges that these changes could introduce.
Extension of the ‘Decent Homes Standard’
Another key area of the Bill includes extending the Decent Homes Standard to the private rented sector, reinforcing the Government’s commitment to ensuring quality housing across all sectors.
Although you may already be familiar with these standards, the proposed emphasis on enforcement and compliance could lead to more rigorous inspections and potential penalties for non-compliance if this change is implemented.
Ensuring that all properties meet the required standards would be crucial to avoid potential legal repercussions.
Prohibition of discriminatory practices
The Bill also seeks to prevent you from discriminating against your tenants based on their receipt of benefits or familial status.
While you should already adhere to non-discriminatory practices, these provisions would formalise certain aspects into law, which could necessitate a careful review of your tenant selection and allocation policies to ensure full compliance.
Any inadvertent discriminatory practices would need to be identified and addressed to align with the proposed legal requirements.
Enhanced tenant rights and landlord obligations
The Bill also includes proposals to enhance tenant rights, such as the ability to challenge rent increases and request permission to keep pets, which landlords may not unreasonably refuse.
You would likely need to establish clear policies and procedures to handle these requests and ensure any refusals are based on reasonable grounds.
Failing to comply with these enhanced rights, should they be enacted, could expose you to legal challenges and reputational risks.
As you can see, the Renters’ Rights Bill could introduce sweeping reforms that would significantly impact the role of social landlord.
The proposed abolition of Section 21 evictions, revised grounds for possession, extension of the Decent Homes Standard, prohibition of discriminatory practices, and enhanced tenant rights would require a comprehensive review and adaptation of current policies and procedures.
Given the potential complexity and reach of these changes, we strongly suggest you speak with a solicitor who specialises in social housing law.
As legal experts, we can help you interpret these proposals, ensuring that your organisation is prepared to meet both the challenges and opportunities that may arise if the Bill passes into law.
Please get in touch with our team for tailored guidance and advice.
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 November 2024.