Posted Thursday 26th September 2024
The Labour Party made it clear during their election campaign that reforms in the rental sector would be a priority. With the previous Renters Reform Bill being scrapped before the election, many people are left feeling a sense of déjà vu following the publication of the highly anticipated Renters’ Rights Bill which has now been introduced for its first reading in Parliament.
The proposed legislation will bring in some significant changes to the way in which the private rental market operates, most notably by abolishing section 21 “no-fault” evictions, introducing longer notice periods for evictions and bringing in a series of new infrastructure aimed at resolving landlord and tenant disputes.
A summary of the key provisions of the Bill are:
Abolishment of section 21 evictions
Under the current legislation, landlords can serve notice on tenants to vacate a residential property without needing to give a reason for the eviction, provided that the contractual fixed term of the tenancy has passed. The Bill seeks to abolish this provision entirely, meaning that residential landlords will only be able to seek possession of their properties under one of the established possession grounds (which will include if the tenant is in arrears, the landlord wants to sell the property or the landlord wishes to move back into the property themselves).
Longer notice periods for possession
The amount of notice that landlords will be required to give will increase across the board. Notably, landlords will need to give a minimum of 4 months’ notice for grounds such as occupation by the landlord or sale of the property.
Introduction of a private rented sector landlord ombudsman and database
All landlords in England and Wales with assured or regulated tenancies will be legally required to register with the ombudsman service and database. The ombudsman will have powers to moderate landlord and tenant disputes and issue binding resolutions. The database will provide guidance for landlords and will allow tenants and local authorities to view information about landlords and rental properties.
Ending fixed-term assured tenancies
The Bill will remove fixed-term assured tenancies, making all tenancies periodic. This will mean that tenancies will continue until the tenant decides to bring it to an end, by serving 2 months’ notice.
Regulating rents
The Bill will attempt to control increasing rental prices by introducing a standardised process for increasing rent. The new system will allow landlords to increase rent once a year, to the price they would receive if the property were newly advertised to let. Tenants will be able to appeal any excessive increase and the Tribunal will have powers to determine the rent. Additionally, when listing new rentals, landlords will be required to publish the rent and it will become an offence to accept offers over the advertised figure.
Decent Homes Standard and Awaab’s Law
Under the proposed legislation, a Decent Homes Standard will be published, setting out the requirements private rentals must meet. Additionally, Awaab’s Law will apply to the private rental market (this currently only applies to social housing) meaning that tenants will have wider powers to challenge dangerous living conditions and landlords will be required to remedy any hazards.
Other measures
Other notable measures include a right for tenants to request a pet, which a landlord cannot reasonably refuse, and a ban on discrimination against tenants with children, or those in receipt of benefits.
The Bill still has a long way to go before gaining Royal Assent, so it is likely to be many months before any of the changes discussed in this article take effect. That being said, Labour do not intend to stagger the introduction of the new measures and are targeting implementation in Summer 2025.
One thing that is certain is that significant change is on the horizon for both landlords and tenants and the private rental market may look vastly different in the not-so distant future.
Please get in touch with the Property Litigation department if you have any questions, concerns or require advice on the effects of this legislation.
This article is for reference purposes only. It does not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking or deciding not to take any action.
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