The first reading of the Renters Rights Bill proposed under the Labour government took place on September 11th 2024. This proposed legislation holds the potential to reshape the landscape of the UK’s rental market. PM Law, a trusted solicitor’s firm in Sheffield, is committed to supporting both landlords and tenants in navigating this significant legal change.
The Renters Rights Bill will bring in new laws for private landlords that aim to improve housing quality and overall protection for tenants. This is a further update from the changes that the Conservative government put forward in the King’s Speech in November 2023. We’re going to discuss each of these changes along with any new updates, and how they will affect landlords and tenants.
What are the Proposed Changes in the Rights Bill and How Will They Help Renters?
Decent Homes Standard: this part of the legislation aims to improve the quality of private rented housing. It states that landlords must keep homes free from all health and safety hazards and be kept in a good state of repair. This was initially implemented public sector landlords but will be mandatory for the private rental sector. These changes aim to make landlords more likely to manage their properties effectively and be proactive when informed of an issue by the tenant. Labour is going a step further and bringing Awaabs Law from the public sector. This means landlords will be expected to address issues with mould and damp within 14 days. If landlords fail to comply, they will potentially be fined up to £7,000 by local authorities and risk prosecution.
Landlords can no longer discriminate against families with children or those on benefits – currently, landlords can refuse a tenancy if the family has children and/or they receive benefits. This would be outlawed under the Renters Rights Bill. Apparently, the government is open to extending this to other vulnerable groups such as prison leavers.
‘No fault’ evictions under section 21 are to be abolished with immediate effect – landlords can currently evict a tenant without reason, but abolishing this rule aims to level the playing field between landlord and tenant. Once this rule no longer applies, landlords will only be able to evict a tenant in reasonable circumstances. Rather than waiting for a review of the courts system, which was the previous bill, nothing about the courts has been proposed by the new bill. This will apply to both existing and new tenancies and will create large changes for managing evictions for private landlords. According to Matthew Pennycock, the Housing Minister, this is expected to be fully in place by summer 2025.
Ombudsman covering all private landlords – a government-approved ombudsman designed to cover all landlords in England will be introduced. The new ombudsman will be able to mediate between landlord and tenant and request apologies where necessary and take remedial action and/or pay compensation up to £25,000.
Landlord register / portal – this part of the legislation is mandatory and designed to give more visibility to tenants. Full details of the landlords’ register are yet to be released, but it’s beneficial to both landlords and tenants. Tenants will be able to see who their landlord is and if their properties meet the necessary legal requirements, and landlords will be able to access details of their legal requirements under the bill.
Tenants to receive more rights to keep pets in rental properties – under this part of the Renters’ Rights Bill, pets will be allowed in rental properties under the new bill and tenants will be able to request a pet before and during the tenancy. If the landlord does deny this, then the tenant will be able to challenge the decision if no fair reason is given. Landlords still have the right to request the tenants have insurance in place in case of any damage to the property.
Rights for tenants to challenge rent increases – this part of the bill gives tenants the right to challenge rent increases by landlords. It’s suggested that this is often used by landlords as a backdoor protection if they cannot use a section 21 to evict. Landlords will also be prevented from accepting higher rent bids from tenants, as they will be required to advertise the rental for the property. This will end bidding wars. Rent increases are proposed to be restricted to once a year, restricting rises to the market rates in the area.
Implications and Considerations of the Renters Rights Bill
For Landlords:
- Enhanced screening of tenants will be essential to ensure compatibility.
- Planning for longer notice periods when increasing rent will be crucial.
- Reviewing pet policies to accommodate tenants’ desires for pet ownership while protecting property assets.
- Being prepared for increased oversight and potential disputes through the new ombudsman.
For Tenants:
- Enjoying increased stability and security with the removal of ‘no fault’ evictions.
- Equal opportunity for housing, regardless of income source or family status.
- More time to budget for rent increases with doubled notice periods.
- Enhanced rights for pet ownership in rental properties.
The Renters Rights Bill has far-reaching implications for both landlords and tenants. PM Law, based in Sheffield, is dedicated to supporting clients in navigating these legal changes and understanding their rights and responsibilities.
It aims to strike a balance between the interests of landlords and tenants, fostering a fair and inclusive rental market. As this bill progresses, it is essential for both parties to stay informed, adapt to the new provisions, and seek legal counsel when needed to ensure a smooth transition in the evolving rental landscape.
Providing Trusted Advice on New UK Renting Laws
The PM Law team understands the impact of these new renting laws on both tenants and landlords in the UK. We have years of experience providing dispute resolution services to landlords and tenants and are here to support you while these changes are being implemented.
