Renters’ Rights Bill – What You Need To Know

The Committee stage is a thorough examination of the individual parts (clauses) of the Renters’ Rights Bill and saw the Conservatives voice strong opposition to the proposed legislation in its existing form warning that the Renters’ Rights Bill risks driving landlords from the market, reducing rental property supply, and ultimately pushing up rents. 

 

This article aims to provide all the information you need to know whether you are a tenant or a landlord. 

 

The government’s own briefing states ‘The bill implements commitments in the 2024 Labour Party manifesto to reform the regulation of the private rented sector and is intended to “give greater rights and protections to people renting their homes, including by abolishing section 21 ‘no fault’ evictions and reforming grounds for possession”. The bill builds on the Renters (Reform) Bill which was introduced in the House of Commons by the Conservative government on 17 May 2023 and primarily covers homes in England. 

Abolish assured shorthold tenancies and with them, section 21 ‘no fault’ evictions. Instead, private rented sector tenancies would be periodic assured tenancies with no end date – providing more security for tenants. Tenants would need to provide two months’ notice to end the tenancy. 

 

Reform and expand the grounds for possession to enable landlords to reclaim their properties, when necessary, whilst ensuring appropriate safeguards for tenants. 

Limit rent increases to no more than once per year, requiring landlords to serve a statutory (section 13) rent increase notice and give at least two months’ notice. Tenants would be able to challenge above-market rent increases through the First-tier Tribunal (Property Chamber). 

 

Prohibit the practice of ‘rental bidding’. Landlords and letting agents would be required to publish an asking rent for their property. They would then be prohibited from inviting, encouraging or accepting offers of rent above the asking price. Give tenants the right to request a pet, which landlords must consider and cannot unreasonably refuse. Landlords would be able to require insurance to cover potential damage from pets. 

 

Make it illegal for landlords to discriminate against tenants who receive benefits or who have children when letting their property. 

Introduce a new ombudsman service for the private rented sector, which all private landlords would be required to join. The service would provide fair, impartial and binding resolution for tenants’ complaints about their landlord. It would have powers to compel landlords to issue an apology, provide information, take remedial action, and/or pay compensation. 

Create a new private rented sector database to bring together key information for landlords, tenants and local authorities. This would enable:  

 

Expand rent repayment orders, including by: 

 

 

Rent repayment orders allow a tenant or local authority to apply to the First-tier Tribunal (Property Chamber) for an order that a landlord or their agent has committed an offence and should repay rent of up to a maximum of 12 months. 

 

Strengthen local authorities’ enforcement powers, expand financial penalties and introduce a new requirement for authorities to report on enforcement activity. The bill would also give the Secretary of State the power to appoint a lead enforcement authority, whose role would include providing guidance and information to local authorities to ensure consistent enforcement.