Renters’ Rights Bill

Ahead of its July 2024 General Election victory, Labour pledged to overhaul England’s private rented sector (PRS) in its manifesto. And, on 11 September 2024, it introduced the Renters’ Rights Bill, which aims to strengthen tenants’ rights and bring in new requirements for property standards and rent rises.

It’s been billed as one of the biggest-ever overhauls of private renting in England. And its aim is to ‘transform the experience of private renting’ for England’s 11 million private renters and 2.3 million landlords, while recognising that the overwhelming majority of them provide a good service, and that renting can provide a flexible stepping stone as people save to buy their own place.

Background to the Bill

In 2019, the previous government stood on a ticket 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. This legislation was introduced in May 2023, but concerns over its impact on landlords hindered its progress, as did fears over courts’ capacity to handle an anticipated influx of cases. Time then ran out to pass the Renters’ (Reform) Bill, before the 2024 election.

On 09 October, 2024, the Renters’ Rights Bill passed its crucial second reading in the House of Commons and, at the time of writing, had proceeded to Committee Stage.

Question:If Section 21 is abolished, can I still get my property back if I want to move into it myself or sell the place?

Answer: Yes, you can. You need a section 8 notice, which puts the onus is on the landlord to prove that the tenant has broken the terms of their tenancy agreement. A Section 8 would grant you possession to either move in or sell up within four months.

Question: Can I still evict my tenants if they fail to look after my property?

Answer: Yes,  you can. Renters still need to keep to the terms of their tenancy, and if they break this agreement, they’ll face eviction. But using a qualified reputable letting agent will help you find suitable tenants, meaning you’re less likely to face this situation in the first place.

What does the Bill actually say?

The Bill is pretty comprehensive, and covers a number of points as well as the end of section 21 evictions.

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 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 term
Read more at the Gov.uk website

Question: Do I have reason to worry that the private Rented Sector Database will just make it easier to target landlords?

Answer: No, it won’t. You’ll still be able to access to guidance and support so that you understand and be empowered to know what to expect from your letting agent.

Oakfield says

We agree that the PRS was in need of reform, but we also know that many landlords, most of whom treat their tenants fairly, have concerns over some areas of the proposed legislation and, frankly, we share them. So while we welcome many areas of the Bill, we also have some thoughts about the impact this will have across the sector, especially with the current lack of power for local authorities to enhance it. And at the same time, we believe in an approach which balances the needs of both landlords and tenants (who also mostly behave reasonably).

However, we appreciate that it has been welcomed by organisations such as the housing charity Shelter, among others.

We’re here to support both landlords and tenants across our areas of East Sussex – and will be glad to answer any questions on the Renters’ Rights Bill and what it means for you.