Much media attention has surrounded the Renters’ Rights Bill in recent years but the First Draft of the bill was finally published by the government yesterday (11th September).
This is not the final version and changes could still be potentially made as it works its way through Parliament but given the significant Labour majority, I would expect much of this to remain in place. The general consensus is that the Bill is likely to receive Royal Assent in the Spring/Summer of 2025.
Whilst some of the changes alter the legal framework in which the lettings market will operate moving forward, they are not as draconian for landlords as some feared. There are some changes, such as the ‘Decent Homes’ standard, where the vast majority of reputable landlords are most likely to be operating in already.
Main talking points:
- Section 21 will be removed. However, landlords will still be able to gain possession of their properties with 4 months’ notice should they wish to sell, move back in or where the tenant is in 3 months arrears. Severe anti-social behaviour is also included.
- Annual rent reviews will be permitted and rent increases will need to be in line with market rate. Rather than rely on fixed term contracts to update the rent, a Section 13 will be used which is a mechanism already in place. Automatic rent increases written into tenancy agreements will not be permitted.
- Fixed term contracts will be abolished. Tenancies will start and continue on a rolling basis with a tenant able to give 2 months’ notice at any time. The earliest a landlord will be able to give notice is 12 months.
- Bidding wars are to be banned when rental properties come to market. Nevertheless, the marketed rate will be the highest accepted.
- It will be illegal for landlords to discriminate against tenants in receipt of benefits or with children when choosing to let out their property. However, if the number of children in a property breaches overcrowding rules, a Landlord can say no.
- Where tenants request to keep a pet, Landlords will be required to consider this request and not unreasonably refuse, however Landlords can ask for pet insurance to be put in place to cover any damage caused.
- Applying ‘Awaabs Law’ – extended from the social housing sector, it is designed to deal with serious hazards in properties and provide clear legal expectations about timeframes within which landlords must adhere.
Other points for consideration:
- A ‘Decent Homes’ standard will be implemented to ensure properties are safe, secure and hazard free.
- Creating a digital private rented sector database to bring together key information for landlords, tenants, and councils. Tenants will be able to access information to inform choices when entering new tenancies. Landlords will be able to quickly understand their obligations and demonstrate compliance, providing certainty for tenants and landlords alike.
- A new landlord ombudsman service for the private rented sector to be set up to provide fair, impartial and binding resolutions to both landlords and tenants which will actually help to reduce the need to go to court.
- A new ground for possession will allow landlords renting to students in HMOs to seek possession ahead of each new academic year.
This is a summary rather than a detailed understanding of what the Renters’ Rights Bill entails but the actual government bill can be seen here:
