Landlords – How the Renters’ Rights Bill will affect you.
The Renters' Rights Bill includes many of the major reforms from the previous proposal, such as ending Section 21 no-fault evictions and allowing tenants to have pets through the ‘Pets in Lets’ initiative. Here's what you need to know about it.
The Labour Party has introduced the Renters’ Rights Bill in Parliament on 11th September 2024, marking a major step forward in housing reform following the failure of the previous Conservative government’s Renters (Reform) Bill to pass before the general election.
Labour’s bill retains key elements from the previous bill but introduces significant new measures aimed at strengthening tenant rights and protections.
Key Elements of the Renters' Rights Bill
Abolition of Section 21 ‘No-Fault’ Evictions
The bill eliminates Section 21 evictions, which allow landlords to evict tenants without providing a reason. This is
intended to provide greater security for renters. The abolition will apply to both new and existing tenancies, offering
immediate protection. Concerns have been raised about whether the courts can handle the anticipated increase in eviction cases, but no judicial reforms have been proposed to address this.
Strengthening Tenant Rights
The bill aims to tackle rent increases and rental bidding wars. Landlords and letting agents will be required to set and publish a fixed asking rent and will be banned from accepting offers above that price. This is designed to prevent landlords from exploiting the housing crisis by driving up rents. Additionally, landlords will only be permitted to raise rents once a year and only up to the market rate.
Decent Homes Standard
For the first time, a Decent Homes Standard will apply to the private rental sector. This measure seeks to address the high number of substandard homes, with government data showing that 21% of private rentals are considered non-decent, with over 500,000 properties having severe hazards. Landlords failing to meet this standard may face fines of up to £7,000 or prosecution.
Awaab’s Law
Named after a tragic case involving a child’s death due to mould in social housing, Awaab’s Law will now be extended to the private rental sector. The law imposes strict deadlines on landlords for inspecting and repairing hazards such as damp and mould, improving tenants’ living conditions.
Pets in Lets
Tenants will have the right to request a pet both before and during a tenancy. Landlords will be required to reasonably consider these requests, although they can request insurance to cover potential damage caused by pets.
Ending Discrimination Against Tenants Receiving Benefits
The bill will make it illegal for landlords to impose blanket bans on tenants receiving benefits or those with children. This provision ensures fair access to housing for all renters.
Digital Database and Property Ombudsman
The bill introduces a digital database to help tenants make informed decisions and it will help Agents and Landlords remain compliant. There will also be a Property Ombudsman to offer an impartial service for resolving disputes without court involvement.
Timeline for Implementation
The bill, backed by Labour’s majority in Parliament, is expected to pass more quickly than its predecessor. Housing Minister Matthew Pennycook has expressed confidence that the new tenancy system will be in place by mid-2025, offering renters greater security and protection.
If you're a Landlord and you have any questions or if you’d like some general advice about the Romford property market, get in touch using the details below.
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