Renters’ Rights Bill: 13 key proposals
On Wednesday 11th September, a new Bill was introduced to Parliament – one that will change the way the private rental market operates at least until there is a change in Government.
When it comes to its impact, the clue was in the name. Although much of the contents was a replica of the Conservatives’ Renters’ Reform Bill, Labour has revised the motion and given it the new name of the Renters’ Rights Bill.
The key word is Rights. In addition to some already debated aspects, the Government has made revisions and addendums that landlords, letting agents, property managers and tenants need to understand. Compared to the Conservatives’ Bill, there is now a greater emphasis on protecting tenants, giving them increased amounts of power to challenge bad practice and poor living conditions.
As with all Bills, there is a mandatory process that ensues, with various stages of debate and appraisal taking place in both the House of Commons and the Houses of Lords. At this stage, no one can put a time limit on how quickly the Bill may become an Act but the Government would like Royal Assent by the summer of 2025.
It’s also worth noting that some of the proposals listed below may be altered or omitted entirely, as well as new reforms added. Once the Bill becomes an Act, there could be a phased implementation for some aspects, while others may come into force immediately. Viewber will be monitoring the Bill as it works its way through Parliament but for now, here are 13 key proposals:-
A ban on Section 21s: this possession notice will cease to exist, meaning landlords will need a valid reason to ask tenants to leave. How Section 8 may be reformed to accommodate the scrapping of Section 21s remains to be seen. Unlike the Conservatives, who pledged to only ban Section 21s after the court system had been reformed, Labour want to introduce the ban as soon as possible, and extend it to existing tenants as well as new ones.
End of fixed-term tenancies: tenancies where the landlords set a specific duration are to cease, Instead, all tenancies will be created on a period basis for no more than a month at a time. Renters will be able to exit their agreement from day one by serving the landlord two months’ notice via any written method.
New landlord circumstance grounds: brand new in the Renters’ Rights Bill will be changes to how a landlord can regain their property for personal reasons. If they want to sell the property or ask the tenant to leave because they want to move in themselves, or move in a family member, they will not be able to use this ground in the first 12 months. They will also need to give four months’ notice to use this ground, and they will not be able to remarket the property as somewhere to rent until 12 months after the notice expires or the claim is filed at court.
Changes to rent arrears: there is a proposed change to the mandatory rent arrears ground. Labour would like this to only be effective when there is three months’ arrears, with a four week associated notice period.
Blanket bans ousted: landlords will no longer be able to discriminate against tenants who have children or who are in receipt of benefits.
Rent rise frequency capped: landlords will be banned from including mid-tenancy rent rises in contracts. Instead, rent rises will be pegged to once a year, to the market rate or a sum proposed by the landlord, should it be lower, with two months’ notice.
End to bidding wars: landlords and their agents will be legally required to publish the asking price on every listing. Encouraging bidding wars and accepting offers over the listed price will be prohibited.
Living standards reform: Awab’s Law will extend from the social housing sector to cover private rentals, as will a new Decent Homes Standard. Tenants will be given more confidence to complain about standards without the fear of a retaliatory eviction.
Lets with pets made easier: tenants with be given the right to keep domestic pets in a rented property, although a landlord can insist the tenant has insurance that covers the risk of pet damage. Alternatively, the tenant pays a fee to the landlord, enabling them to buy a pet-specific insurance policy – the latter as result of an amendment to The Tenant Fees Act 2019.
New student possession ground: a new ground is planned that will exclusively affect landlords who own HMOs let entirely to students.
Creation of a Private Rented Sector Database: this will become a landlord’s central hub for compliance information, as well as be usable by tenants and local authorities.
New landlord/tenant ombudsman service: dispute mediation and resolution will come from a new ombudsman for the private rented sector, hopefully reducing the need for cases to go to court.
Greater powers given to local authorities: it will become easier for local authorities to clamp down on private rentals where there is an instance of non-compliance, via freer access and increased financial penalties.
If you feel the Renters’ Rights Bill may affect your involvement in property, please contact Viewber – we are here to help letting agents, property managers and landlords adapt to future changes, and manage their workloads through our property viewing and visit services.
