Deputy Prime Minister Angela Rayner has vowed to pass the Renters’ Rights Bill ‘as soon as possible’ – as the legislation has now returned to Parliament for its second reading.
The bill, which has been welcomed by organisations such as the housing charity Shelter, was first introduced barely a month ago, on 11th September, and is now having its second outing during the first 100 days of the new Labour government, which it says underscores its determination to pass the legislation as quickly as it can.
The government, while appreciating the need for reform, acknowledges that most landlords provide a good service, and that renting provides flexibility and, often, a stepping stone while people save to buy their own home.
History of the bill
In 2019, the previous government stood on a manifesto of ending no-fault evictions. Its Renters (Reform) Bill included a commitment to doing away with section 21 (of the Housing Act 1988) processes, which enable landlords to evict a tenant in England with two months’ notice without having to provide a reason for doing so once the tenancy’s fixed term ends. (In contrast, with section 8 notices the onus is on the landlord to prove that the tenant has broken the terms of their tenancy agreement.) This legislation was introduced in May 2023, but concerns over its impact on landlords hindered its progress, and courts needed the capacity to handle an expected influx of cases. Time then ran out to pass the law before this summer’s election. That means that letting agents and landlords can, at the moment, still service section 21 notices.
In its election’s manifesto, Labour pledged to abolish section 21 evictions ‘immediately’ – now the freshly minted government appears to be making good on its promise.
Rayner said in a recent radio interview: “Section 21 is causing misery for many, because it is used to turf a lot of people out, without any explanation or excuse.”
She also stressed her belief that the balance of power was currently too far in favour of landlords. rather than tenants.
What does the Renters’ Rights Bill say?
This legislation aims to ‘transform the experience of private renting’ for England’s 11 million private renters and 2.3 million landlords, and includes ending section 21 evictions, fully and completely. Landlords will have to use section 8 notices to evict renters instead.
Among the other proposed measures are:
- A new Private Rented Sector Landlord Ombudsman: This is aimed at resolving tenant complaints quickly, fairly and impartially and replicates arrangements already in place, for example, in the social housing sector.
- The creation of a private rented sector database: This is to help landlords with understanding their legal obligations and showing compliance while giving renters a better standard of information so they can make informed decisions as they enter a tenancy agreement. To use some grounds for possession, landlords will have to be registered on the database.
- Greater rights for renters to ask to keep a pet in the property: The landlord will need to consider such requests and cannot withhold permission to keep a pet unreasonably. However, they will have a right to ask for pet insurance to cover any potential damage to their property.
- ‘Awaab’s Law’ will now apply to the private rented sector: This sets out clear expectations about how quickly private landlords must act to make properties safer when certain hazards are present – e.g. mould.
- Making discrimination illegal: This applies to prospective tenants who have children or receive benefits – landlords must treat everyone fairly and in the same way when they are looking for somewhere to live.
- The Decent Homes Standard: This is a government-set minimum standard for the condition of social housing in the UK. The bill applies the standard to the private rented sector with the aim of giving renters safe homes of good quality and providing value for money.
- Strengthening local authority enforcement: Local authorities will have to report their enforcement activity while civil penalties will be expanded and councils will have greater investigatory powers.
- More protection against ‘backdoor’ evictions: Tenants will be able to challenge above-market rent rises aimed at forcing them out of their homes. However, landlords will still be able to increase rents at market rate, while, if needed, independent tribunals will be able to pass judgements.
- Fairness of possession grounds: Tenants will have increased security, although landlords will still be able to recover their property if they have reasonable grounds for doing so. The bill also gives renters longer to find a new place if landlords want to sell up or move in themselves, so that unfair landlords won’t be able to misuse grounds for possessing a property.
- Removal of fixed term tenancies Probably one of the most fundamental changes this means that all tenancies going forward will be periodic from the commencement date. The idea of this is to allow Tenants the freedom to move around without being tied by lengthy fixed terms
The bill is pretty lengthy and covers a lot of points – you can read more here.
Oakfield says
We broadly welcome the Renters’ Rights Bill and believe in a healthy, fair private rented sector for the UK. We also agree that most landlords do treat their Tenants fairly, and within the law, while the vast majority of tenants also behave decently, but this bill strengthens tenants’ rights. So we will be following developments with interest and will keep you posted as the bill makes its way through Parliament.
As mentioned above, renting can work in many situations, not least if you’re looking for a temporary home or want the flexibility of being a tenant and the ability to move at short notice At Oakfield Estate Agents, we can help whether you’re looking for a property to rent in East Sussex – or if you have a flat or house to let out. With offices in Hastings, Eastbourne, Bexhill-on-Sea, Uckfield, Heathfield and Lewes, we’ve pretty much got the county covered.
Get in touch today to learn more about what we could do to secure you a fair deal on your let or next rental home.