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The Renters Rights Bill aims to transform tenancy management in the UK, enhancing tenant protections while introducing significant changes for landlords.
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Written by
Ben Luxon
PUBLISHED ON
Sep 26, 2024
The Renters' Reform Bill has been in the news ever since it was brought forward by Michael Gove in early 2023. It suggested making significant changes to the private rental sector, increasing tenant rights, and making it harder for landlords to remove rogue tenants from their properties.
However, the conservative government never quite managed to get the bill through parliament, facing stiff opposition from both inside and outside of their party, with landlord lobbyists causing significant delays and increasingly watering down the bill’s potential impact - and progress on the bill eventually completely stalled in early 2024.
In September of 2024 the Labour Government brought rental reform back into the conversation with a new bill, promising many of the changes that the Renter’s Reform Bill promised, and some more besides.
The Labour Government’s version is called the Renter’s Rights Bill. This bill marks the start of a potential transformation in tenancy management across the UK, aiming to offer greater protections for tenants while introducing substantial changes for landlords.
The Renters Rights Bill is now scheduled for its second reading in the House of Commons on October 9th. Labour’s pledge to improve housing availability makes this piece of legislation a cornerstone of their platform. As such, the bill is expected to be pushed through parliament over the coming months and could become law by the summer of 2025.
Here's a breakdown of the proposed changes and what landlords can do to stay prepared.
One of the biggest shifts in the bill is the abolition of Section 21, commonly known as "no-fault" evictions. Under the new rules, landlords will no longer be able to evict tenants without providing a legitimate reason. Instead, evictions will require a legally valid reason, such as rent arrears or a desire to sell the property.
This change has raised concerns among landlords who fear it may become more difficult to regain possession of their properties. The National Residential Landlords Association (NRLA) has stressed that landlords need time to adjust to the new regulations. However, tenant groups like Generation Rent view this as a long-overdue reform that will offer renters more security and reduce unfair eviction practices.
The bill also introduces new measures to control rent increases. Under the proposed legislation, rent can only be increased once per year, and any increase must reflect current market rates. This aims to give tenants greater financial stability and protect them from sudden, unreasonable hikes in rent.
Additionally, the bill will put an end to rental bidding wars, where tenants offer to pay above the asking price in high-demand areas. Landlords and letting agents will need to set an asking rent and will no longer be able to accept offers above that price, which should help prevent unfair competition and rising rents.
The Renters' Rights Bill includes provisions to prevent discrimination against tenants with children or those receiving benefits. Landlords will no longer be able to refuse tenants based on these factors, promoting a more inclusive rental market.
Tenants will also have the right to request to keep pets. While landlords can still require tenants to take out pet insurance to cover potential damage, blanket "no pets" policies will not be allowed unless there is a legitimate reason to refuse.
Following the tragic death of a child due to exposure to mould, the bill will extend Awaab’s Law to private rentals. Landlords will be required to address serious health hazards like dampness and mould within a set timeframe. If they fail to do so, they could face penalties.
Additionally, the Decent Homes Standard, which already applies to social housing, will now be extended to the private rental sector. This ensures that all rental properties meet minimum safety and habitability standards.
With these upcoming changes, staying on top of compliance will be more important than ever for landlords. Landlord Studio offers several tools that can help landlords manage their properties efficiently and avoid potential legal issues.
The landlord community has expressed mixed feelings about the Renters' Rights Bill. While many landlords understand the need for tenant protections, they also worry about the impact on their ability to manage properties effectively. When it comes to the abolition of Section 21 there is deep concern that the courts simply aren’t set up to handle the necessary number of evictions, and there is fear that judges will overly favour tenants.
The NRLA has emphasised the need for sufficient time for landlords to adjust and comply with the new regulations, particularly in the area of evictions and court procedures.
Tenant groups, on the other hand, welcome these reforms, believing they will offer long-overdue protections for renters and prevent exploitative practices in the rental market.
As we saw with the conservative Renter’s Reform Bill, the passage of bills through the parliamentary process is by no means a certainty and there remains stiff opposition to the bill. As such, landlords need to keep up to date with changes and progress of the legislation.
With that being said, the Renters' Rights Bill is expected to pass into law by mid-2025 and landlords should take this time to make any necessary preparations.
Start by reviewing your tenancy agreements, updating policies on pets and rent increases, and ensuring your properties comply with the Decent Homes Standard. It’s also crucial to familiarise yourself with the new rules around evictions and prepare your documentation and processes to align with them.
Navigating the upcoming changes will require some adjustment, but with the right tools and preparation, you can ensure compliance and continue to manage your properties effectively. Staying informed as the bill progresses through parliament and leveraging property management solutions like Landlord Studio will help you adapt to the new regulations.
Landlord Studio can help in several ways, by automating tasks and providing reminders, reports, and a secure place to store all your essential documents.
By keeping ahead of the curve, landlords can be well-prepared for the evolving rental market and ensure their properties remain compliant under the new rules.
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