The Renters’ Rights Bill 2024 – formerly called the Renters’ Reform Bill under the Tories – is making progress, but what’s changed for landlords?
Both this government and the last have acknowledged that reform is needed in the UK private rented sector (PRS), with changes put forward to offer more protection to tenants, as well as to improve the market for landlords.
A lack of clarity and progress over the years may have caused property investors and landlords some unease over what the new legislation could mean for them. But by staying informed of any upcoming changes, landlords can ensure their own compliance.
Furthermore, much of the new Renters Rights Bill is aimed at weeding out poor properties and sub-standard landlords – which thankfully only represents a very small proportion of the overall private rented sector. Making these improvements is expected to boost standards across the board, increasing the desirability of renting.
The main difference between the two Bills
The Conservative Party had already got their Renters Reform Bill through to a second reading in Parliament, but it unfortunately didn’t make it any further before the general election was called. Much of the new Renters Rights Bill is unchanged or very similar, but there are some differences.
- Labour have said that they hope to bring an end to Section 21 “no-fault” evictions “immediately through the Renters Rights Bill. This is where a landlord can evict tenants for apparently no reason. Some argue that Section 21 evictions are sometimes used unfairly, such as when a landlord wants to significantly hike the rent and so gets rid of existing tenants to bring in higher paying ones. However, others argue that Section 21 is a useful alternative to Section 8 evictions (which can be used when tenants aren’t paying rent, for example), as these can be a more lengthy process.
- Labour wants to bring Awaab’s Law to the private rented sector in its Renters Rights Bill. At the moment, it applies only to the social housing sector. It was brought in after the death of two-year-old Awaab Ishak from exposure to mould in his social housing home, and means landlords must respond and act quickly if damp or mould are reported in a home.
- The Renters Rights Bill looks at banning bidding wars between tenants, with landlords potentially being banned from accepting higher-than-advertised rents. It could also ban in-tenancy rent increases.
It is important to note that the Renters Rights Bill is currently in draft form, and therefore the current proposals may not come to pass as law, or may be altered as the Bill makes its way through Parliament.
A summary of key points in the Renters Rights Bill
According to the government website, the Renters Rights Bill will:
- Abolish section 21 evictions and move to a simpler tenancy structure where all assured tenancies are periodic – providing more security for tenants and empowering them to challenge poor practice and unfair rent increases without fear of eviction. We will implement this new system in one stage, giving all tenants security immediately.
- Ensure possession grounds are fair to both parties, giving tenants more security, while ensuring landlords can recover their property when reasonable. The bill introduces new safeguards for tenants, giving them more time to find a home if landlords evict to move in or sell, and ensuring unscrupulous landlords cannot misuse grounds.
- Provide stronger protections against backdoor eviction by ensuring tenants are able to appeal excessive above-market rents which are purely designed to force them out. As now, landlords will still be able to increase rents to market price for their properties and an independent tribunal will make a judgement on this, if needed.
- Introduce a new Private Rented Sector Landlord Ombudsman that will provide quick, fair, impartial and binding resolution for tenants’ complaints about their landlord. This will bring tenant-landlord complaint resolution on par with established redress practices for tenants in social housing and consumers of property agent services
- Create a Private Rented Sector Database to help landlords understand their legal obligations and demonstrate compliance (giving good landlords confidence in their position), alongside providing better information to tenants to make informed decisions when entering into a tenancy agreement. It will also support local councils – helping them target enforcement activity where it is needed most. Landlords will need to be registered on the database in order to use certain possession grounds.
- Give tenants strengthened rights to request a pet in the property, which the landlord must consider and cannot unreasonably refuse. To support this, landlords will be able to require pet insurance to cover any damage to their property
- Apply the Decent Homes Standard to the private rented sector to give renters safer, better value homes and remove the blight of poor-quality homes in local communities.
- Apply ‘Awaab’s Law’ to the sector, setting clear legal expectations about the timeframes within which landlords in the private rented sector must take action to make homes safe where they contain serious hazards.
- Make it illegal for landlords and agents to discriminate against prospective tenants in receipt of benefits or with children – helping to ensure everyone is treated fairly when looking for a place to live.
- End the practice of rental bidding by prohibiting landlords and agents from asking for or accepting offers above the advertised rent. Landlords and agents will be required to publish an asking rent for their property and it will be illegal to accept offers made above this rate.
- Strengthen local authority enforcement by expanding civil penalties, introducing a package of investigatory powers and bringing in a new requirement for local authorities to report on enforcement activity.
- Strengthen rent repayment orders by extending them to superior landlords, doubling the maximum penalty and ensuring repeat offenders have to repay the maximum amount.
