Understanding the Renters Rights Bill: Implications for Landlords and Tenants
The Renters Rights Bill had its first reading in Parliament on 11th September 2024. This proposed legislation holds the potential to dramatically reshape the landscape of the rental market in England and Wales.
The Renters Rights Bill will bring in new obligations for private landlords that aim to improve housing quality and protection for tenants, including making it harder for tenants to be evicted.
A previous attempt to reform the law was introduced by the previous Government but did not become law due to the 2024 General Election. This new bill expands the proposed reforms to the rental sector and will be biggest changes since 1988.
This article will discuss each of these changes, and how they will affect landlords and tenants.
What are the Proposed Changes in the Renters Rights Bill and How Will They Help Renters?
The Renters Rights Bill represents a huge shift in the rights of tenants. All of the proposals in this piece of legislation have the power and potential to transform renting in England and Wales.
Decent Homes Standard: A minimum homes standard and the obligation to keep homes free from all health and safety hazards and in a good state of repair is being introduced to the private sector having already been implemented in the public sector.
These changes aim to make landlords more likely to manage their properties effectively and be proactive when informed of an issue by the tenant. As part of this rollout, Awaabs Law is also being brought in from the public sector. This means landlords will be expected to address issues with mould and damp within 14 days. Failure to comply will expose landlords to a potential fine of up to £7,000 by local authorities and prosecution.
Landlords can no longer discriminate against families with children or those on benefits Currently, landlords can refuse a tenancy if the prospective tenants have children and/or receive benefits. This would be outlawed under the Renters Rights Bill. The Government may also look to extend this to other vulnerable groups such as prison leavers.
New ‘No fault’ evictions under section 21 are to be abolished with immediate effect – landlords can currently evict a tenant without a reason. Once this rule no longer applies, landlords will only be able to evict a tenant in defined circumstances set out in the legislation. This will apply to both existing and new tenancies and will create large changes for managing evictions for private landlords. According to the Housing Minister, the ban is expected to be in place by summer 2025.
However, landlords who issue a Section 21 Notice before the new system is implemented will be allowed to continue with the old process whilst their notice remains valid.
Ombudsman covering all private landlords – a government-approved ombudsman designed to cover all landlords in England will be introduced. The new ombudsman will be able to mediate between landlord and tenant and request apologies where necessary and take remedial action and/or pay compensation up to £25,000.
Landlord register / portal – this part of the legislation will make it mandatory for landlords to register on a national portal and is designed to give more visibility to tenants. Full details of the landlords’ register are yet to be released, but it’s beneficial to both landlords and tenants. Tenants will be able to see who their landlord is and if their properties meet the necessary legal requirements, and landlords will be able to access details of their legal requirements under the bill.
Tenants to receive more rights to keep pets in rental properties – under this part of the Renters’ Rights Bill, pets will be allowed in rental properties under the new bill and tenants will be able to request a pet before and during the tenancy. If the landlord does deny this, then the tenant will be able to challenge the decision if no fair reason is given. Landlords still have the right to request the tenants have insurance in place in case of any damage to the property.
Rights for tenants to challenge rent increases – this part of the bill gives tenants the right to challenge rent increases by landlords. It’s suggested that this is often used by landlords as a backdoor protection if they cannot use a section 21 to evict. Landlords will also be prevented from accepting higher rent bids from tenants, as they will be required to advertise the rental for the property. This will end bidding wars. Rent increases are proposed to be restricted to once a year, restricting rises to the market rates in the area. Rent review clauses which could increase the rent beyond the permitted market rate will no longer be permitted.
Implications and Considerations of the Renters Rights Bill
For Landlords:
– Enhanced screening of tenants will be essential to ensure compatibility.
– Planning for longer notice periods when increasing rent will be crucial.
– Reviewing pet policies to accommodate tenants’ desires for pet ownership while protecting property assets.
– Being prepared for increased oversight and potential disputes through the new ombudsman.
For Tenants:
– Enjoying increased stability and security with the removal of ‘no fault’ evictions.
– Equal opportunity for housing, regardless of income source or family status.
– More time to budget for rent increases with doubled notice periods.
– Enhanced rights for pet ownership in rental properties.
The Renters Rights Bill has far-reaching implications for both landlords and tenants.
This reform aims to strike a balance between the interests of landlords and tenants, fostering a fair and inclusive rental market. As this bill progresses, it is essential for both parties to stay informed, adapt to the new provisions, and seek legal counsel when needed to ensure a smooth transition in the evolving rental landscape.
Providing Trusted Advice on New Renting Laws
Barrett & Co Solicitors in Reading understands the impact of these new renting laws on both tenants and landlords. We have years of experience providing dispute resolution services to landlords and tenants and are here to support you while these changes are being implemented.
