Understanding the New Renters’ Rights Bill: Key Changes and Impacts
The Government has recently published the new Renters’ Rights Bill, signaling a significant shift in the regulations governing both new and existing tenancies. These changes could come into effect as early as next spring, bringing a wave of reforms aimed at protecting renters across England.
During its First Reading in the House of Commons, the Government outlined several critical measures that could reshape the rental landscape. Here’s what you need to know:
1. End of Section 21 ‘No Fault’ Evictions
The bill proposes to abolish Section 21, often referred to as ‘no fault’ evictions, which currently allows landlords to terminate tenancies without providing a reason. Alongside this, fixed-term tenancies would be eliminated, replaced by a new framework requiring landlords to provide four months’ notice and prove specific grounds for possession.
2. Limiting Rent Increases
Under the new bill, landlords would be restricted to increasing rent just once a year, and any increase would be capped at market levels. This aims to prevent sudden, sharp rises in rent that can make it difficult for tenants to afford their homes.
3. Introducing the Decent Homes Standard
For the first time, the private rental sector would be subject to the Decent Homes Standard, which mandates certain minimum conditions for rental properties. Landlords who fail to meet these standards could face fines of up to £7,000, ensuring that tenants live in safe and habitable homes.
4. Extension of Awaab’s Law
Awaab’s Law, designed to address serious hazards in rental properties, will now extend to the private rental sector. This law sets strict timeframes for landlords to make necessary repairs when a property poses significant risks to health and safety.
5. Creation of a Digital Rental Database
A new digital database will be established to provide crucial information for landlords, tenants, and local councils. This database aims to improve transparency and accountability within the private rental sector.
6. Establishing a New Ombudsman Service
The bill also proposes a new ombudsman service dedicated to resolving disputes between landlords and tenants. This service will offer a fair, impartial, and binding resolution, reducing the need for costly and time-consuming court proceedings.
7. Strengthening Tenants’ Rights
Several new protections for tenants are included in the bill. These include the right to challenge unfair rent increases, an end to rental bidding wars, and the right to request a pet. Additionally, landlords will be prohibited from discriminating against tenants based on their receipt of benefits or having children.
Key Differences from the Previous Bill
While the new Renters’ Rights Bill shares similarities with the previous Renters (Reform) Bill, there are some notable differences:
•Simultaneous Application: The changes will apply to both new and existing tenancies, expected to be fully implemented by summer 2025.
•Tenant Notice Periods: Tenants will be allowed to give notice from the first day of their tenancy.
•Landlord Grounds for Possession: Grounds such as the landlord needing to sell or move into the property will not be available within the first 12 months of the tenancy and will require four months’ notice.
•Mandatory Rent Arrears Grounds: The criteria for mandatory possession based on rent arrears will change to require three months of arrears and four weeks’ notice.
•Student Tenancy Adjustments: Specific changes to possession grounds for student accommodations will only apply to Houses in Multiple Occupation (HMOs) rented entirely to students.
What Happens Next?
The Bill is scheduled for its second reading in the Commons later this year. During this phase, amendments can be proposed, but given the sizeable Labour majority, significant changes are unlikely.
Preparing for Change
Adapting to these new regulations won’t be without its challenges. The removal of Section 21 represents the most significant overhaul in the rental sector in three decades. Landlords, agents, and tenants alike will need to familiarise themselves with their new rights and responsibilities. However, this transition will take time, and landlords and tenants are likely to need more support, at least in the foreseeable future.
While I acknowledge that some changes in the sector are necessary, I can’t help but worry about the many landlords who may struggle to navigate these challenges. Having seen the impact of ‘rogue tenants’ firsthand, I understand the anxiety many landlords are feeling. My concern is that good landlords might decide to leave the sector altogether, which would leave us in an even worse position. Without a significant increase in homeownership opportunities, we can’t expect renters to transition to homeowners overnight. It will require substantial effort and support from our new government to make that shift possible.
For more detailed information on these changes and how they might affect you, please feel free to get in touch, we are here to help Contact us
Diane Bialek - Diane’s Nottinghamshire Property Blog
