The government’s new Renters’ Rights Bill has started its journey through Parliament and is one of the most significant pieces of legislation for the private rental sector in the past 30 years, affecting four million properties. If it becomes law in its proposed form, existing tenancies will convert to the new system and any new tenancies will be governed by the new rules. So what changes are in store for landlords, renters and letting agents?
Evictions
As expected, the Bill will ban Section 21 ‘No Fault’ evictions. Landlords will still be able to evict if a tenant is at fault using a Section 8 ground at any point during the tenancy. These grounds include significant rent arrears (the mandatory threshold for eviction will increase from 2 to 3 months arrears, and the notice period increase from 2 weeks to 4), antisocial behaviour and damage to property. Landlords must, as in the current system, provide evidence that the relevant ground has been met and go to court if a tenant does not leave. For mandatory grounds, the court must award possession if the ground is proven. For discretionary grounds, e.g. the paying of rent is consistently late, the court can consider if an eviction is reasonable.
If a landlord wishes to either sell their property or move in themselves, they will have the option to seek possession but they will have to wait until the first 12 months of a tenancy has passed, and then give their tenants four months’ notice.
Periodic tenancies
Fixed term assured tenancies will be abolished and all tenancies will become periodic. Tenants can serve two months’ notice to end the tenancy, at any time, and via any written method.
Rent increases
Landlords will be able to increase rents once per year to match the market rate (the rent the property would have achieved if newly let). To do this, landlords will need to serve a ‘Section 13’ notice, setting out the new rent and giving at least 2 months’ notice of it taking effect.
If tenants feel the rise is unreasonable, they have the right to challenge the increase at an independent tribunal who will make a judgement, and if needed, determine what the market rent should be. New rents will apply from the date of the Tribunal determination and cannot be backdated. In cases of undue hardship, the Tribunal will have the power to defer rent increases by up to a further 2 months.
Rental Bidding
Landlords and letting agents will be required to publish an asking rent for their property, and it will be illegal to accept offers made above this advertised rate.
Ban on discrimination
Landlords and/or letting agents will no longer be able to advertise properties as ‘No benefits’ or ‘No children’ and should not discriminate against would-be tenants in receipt of benefits (universal credit, housing benefit or disability). Landlords and letting agents will continue to have the final say on who they let a property to and can carry out references checks to make sure tenancies are sustainable for all parties e.g. based on an affordability or if a level of occupancy would mean that rules on overcrowding were breached.
Pets
The Bill gives tenants the right to request a pet in the property, which the landlord must consider and cannot unreasonably refuse. Landlords will be able to require tenants to purchase pet insurance to cover potential damage to their property.
Private Rented Sector Database
All landlords of assured and regulated tenancies will be legally required to register themselves and their properties on the database and could be subject to penalties if they market or let out a property without registering it and providing the required information. Landlords will need to be registered on the new Private Rented Sector Database in order to use certain possession grounds.
‘Awaab’s Law’
The Bill will set 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 e.g. damp and mould. The Bill will also introduce regulations setting out a Decent Homes Standard (DHS) introducing a legal duty on landlords to ensure their property meets these requirements. Landlords of properties free of serious hazards could be issued with civil penalties of up to £7,000.
How we can help
The government hopes The Renter’s Rights Bill will be in force by summer 2025. The Bill must be approved by MPs and peers, and it will be interesting to see if any further changes are proposed before it becomes law. In the interim, there are predictions that the courts could be flooded with eviction cases, at a time when the courts are already backlogged with landlord possession actions.
If you are a landlord seeking advice regarding The Renters’ Rights Bill, please contact Frances Watts on t: 0118 920 9499 or e: frances@thpsolicitors.co.uk, or for support regarding landlord and tenant disputes and/or possessions please contact Laura Colebrook on e: