Landlords are gearing up for the introduction of the Renters’ Rights Bill, which looks set to overhaul the private property rental market in England and Wales.
The Bill is the Labour Party’s version of the previous government’s Renters’ (Reform) Bill, which failed to receive royal assent before parliament was dissolved.
The Labour government hopes that the Bill will “transform the experience of private renting” and “improve the current system for both the 11 million private renters and 2.3 million landlords in England”.
“Reform of the sector is long overdue, and we will act where previous governments have failed. While the majority of landlords provide a good service, the private rented sector currently provides the least affordable, poorest quality and most insecure housing of all tenures,” said the statement from the Ministry of Housing in the background to the Bill.
In this blog, our experienced Landlord and Tenant solicitors consider the main features of the Renters’ Rights Bill and consider what it means for landlords in England and Wales.
What is the Renters’ Rights Bill?
The Renters’ Rights Bill is the culmination of a lengthy campaign to improve the private rental sector in England and Wales.
The rental sector in England and Wales has faced various criticisms, including:
- No-fault evictions. Under section 21 of the Housing Act 1988, landlords can ask tenants to move out of a property without giving a reason and with only two months’ notice, which creates uncertainty and instability.
- Unfair rent increases. Unscrupulous landlords can impose arbitrary rental increases without room for recourse.
- Discrimination. Tenants with children or on low incomes often face difficulties finding appropriate accommodation.
- Poor quality. Properties can sometimes fail to meet basic standards.
What is included in the Renters’ Rights Bill?
The Renters’ Rights Bill will:
- Abolish no-fault evictions. Under the new proposals, no-fault evictions will be scrapped, and landlords must provide clear and expanded possession grounds to reclaim properties.
- Ensure possession grounds are fair to both parties. The Bill introduces new safeguards for tenants, giving them more time to find a home if landlords evict to move in or sell.
- Strengthen protections against backdoor evictions. Tenants will be able to appeal excessive above-market rents designed to force them out.
- Introduce a new Ombudsman. A new ombudsman service for the private rented sector will provide quicker and cheaper dispute resolution services for landlords and tenants.
- Create a private rented sector database. Plans include the creation of a digital private rented sector database to bring together key information for landlords, tenants, and councils.
- Give tenants more rights to request a pet. Landlords must consider tenant requests to keep pets and cannot unreasonably refuse.
- Apply the Decent Homes Standard. This will be rolled out 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’. Labour’s proposals include setting clear legal expectations about the timeframes within which landlords in the private rented sector must make homes safe where they contain serious hazards.
- Introduce anti-discrimination measures. The Bill makes it illegal for landlords and agents to discriminate against prospective tenants in receipt of benefits or with children.
- End the practice of rental bidding. Landlords and agents will be prohibited from asking for or accepting offers above the advertised rent.
- Strengthen local authority enforcement. Civil penalties will be expanded and a new package of investigatory powers that requires local authorities to report on enforcement activity will be introduced.
- Extend rent repayment orders. Rent repayment orders will be extended to include superior landlords, and the maximum penalty will be doubled. Repeat offenders will have to repay the maximum amount.
- Remove fixed-term assured tenancies. All tenancies will be periodic, with tenants able to stay in their home until they decide to end the tenancy by giving two months’ notice.
Read the government’s full guide to the Renters’ Rights Bill here.
What do landlords need to do under the Renters’ Rights Bill?
The Renters’ Rights Bill will introduce significant changes for landlords. Under the Renters’ Rights Bill landlords in England and Wales must:
- Register on the private rented sector database. Landlords must register their properties and themselves on the database.
- Publish asking rent. Landlords and agents will be required to publish an asking rent for their property. It will be illegal to accept offers made above this rate.
- Limit rent increases. Landlords can only increase rent once per year.
- Not discriminate. Landlords can’t discriminate against tenants who receive benefits or have children.
- Limit grounds for moving in. Landlords can’t use grounds for moving in, selling, or redevelopment for the first six months of a tenancy.
The new legislation also extends the notice period for rent arrears from two to four weeks.
Landlords can evict tenants who have been in at least two months’ rent arrears three times in the previous three years.
Landlords must ensure they are aware of their new obligations and make any necessary changes and improvements in good time to ensure compliance with the new rules.
If you are a landlord wondering how you are affected by the Renters’ Rights’ Bill, please call Larcomes on 023 9244 8100 or make an online enquiry.
Our specialist Landlord and Tenant solicitors have extensive experience providing legal advice for landlords in Portsmouth, Waterlooville and across the wider South East and will be able to advise you on the best way to proceed.
When will the Renters’ Rights Bill come into force?
A second reading of the Renters’ Rights Bill took place on 9 October 2024. There is currently no set timeframe for when it will become law, although it is expected to come into force around April 2025.
Landlord and Tenant Solicitors Near Me
At Larcomes, our specialist and dedicated team of landlord and tenant solicitors in Portsmouth and Waterlooville can assist you through the ever-changing maze of landlord and tenant legislation across all sectors of the commercial and residential real estate market.
We work hard to ensure that our advice is practical, jargon-free and cost-effective at all times.
We advise both residential and commercial landlords on all areas of the law from offering initial landlord advice and assistance to handling successful court proceedings should a dispute arise.
To speak with one of our specialist Landlord and Tenant solicitors in Portsmouth and Waterlooville, please call on 023 9244 8100 or make an online enquiry.
Please note that this article is not intended to be legal or professional advice. It is for general guidance only, and updates to the law may have changed since it was published.
