The Renters Rights Bill

The Renters Reform Bill is currently going through the House of Lords

https://bills.parliament.uk/bills/3462#timeline

Under the Labour government, its title was changed to The Renters Rights Bill.

This Bill was introduced by the previous Conservative government but was shelved due to the surprise of the early election date. The new Labour government has already committed to introducing the key parts of the Bill.

It will broadly include the following:

 

1. Ban on "no-fault" section 21 evictions. However, this will only become law once the government is satisfied that the courts can handle any increase in cases coming to court.

 

2. In place of section 21, the bill will strengthen section 8 grounds. The government plans to add a new ground for repeated rent arrears. Eviction will be mandatory where the tenant has been in at least two month's rent arrears three times within the previous three years. Even if, at the time of eviction, they are not in arrears. Also, where the landlord needs to sell the property, or they need the property for their own family. This can apply after a tenant has been in a property for at least six months.  

 

3. Fixed-term tenancies will be scrapped and replaced with periodic tenancies, (tenancies that continue indefinitely) until the tenant gives notice, (this is likely to be between two-six months' notice) or the landlord seeks to end the tenancy due to a breach by the tenant. Alternatively, the landlord can end the tenancy if they are selling the property or require it for their own family's housing.

 

4. Rent increases will be limited to yearly, and landlords will need to give two months' notice of any increase. Any increase will need to be at market rates, this is to avoid landlords making unreasonable increases in order to force tenants out. There will be a new form to inform tenants of rent increases. Tenants will have a right to challenge any increase, presumably through the Ombudsman or the courts.

 

5. It will become illegal for landlords or agents to discriminate against tenants who have children or those on benefits.

 

6. Ban on rental property bidding wars. Offers over the listed price should not be encouraged, made or accepted by the parties. (However, it will be difficult to enforce this.)

 

7. A new Decent Homes Standard (DHS) for the private rented sector. Local authorities will be given enforcement powers. This will include fines of up to £30,000, banning orders, and the ability for tenants to reclaim up to 24 months' rent back from the landlord.

 

8. Introduction of "Awaab's Law." This law is named after Awaab Ishak, who died after prolonged exposure to mould in a housing association property. The update will mean private landlords must follow a strict timescale to repair or remove hazards.

 

9. A new Private Rented Sector Landlord Ombudsman for landlords and tenants in England. This is designed to keep housing disputes out of the over-stretched court system. The Ombudsman will have the power to make landlords take corrective action and/or pay compensation. Landlords will also be made to repay rent, where appropriate. It looks as though it will be mandatory for landlords to join. Where a landlord repeatedly fails to comply with any orders made by the Ombudsman it could result in the landlord receiving a Banning Order.

 

10. A private rented sector database - all landlords must register themselves and their properties. This is designed to improve accountability and transparency. However, it will also be a useful source of information for HMRC.

 

11. Tenants' right to pets in property. The tenant can make a request to the landlord asking to keep a pet or pets. The landlord must accept or refuse consent by the 42nd day after the request was made. However, the landlord cannot unreasonably withhold their consent. Tenants will need to prove they have suitable pet insurance to cover any associated damage and costs. Alternatively, the landlord can pass the cost of any additional insurance to the tenant.

 

12. The government will introduce a Property Portal with information for landlords to help them comply with the new law.

 

13. Rent Repayment Orders (RPO), are for more extreme breaches by landlords, such as using violence to enter a property or repeated failures to comply with improvement orders. The Bill proposes adding breaches of Ombudsman rules and providing false or misleading information to the new property portal. As stated, tenants can reclaim up to 24 months' rent back from the landlord.

 

There is no definite timescale for when the Bill will become law. But it is likely to be the summer or autumn of 2025.