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Apr 2025
The Renters’ Rights Bill
The Renters’ Rights Bill is an upcoming piece of legislation, which is likely to become law in Summer/Autumn 2025. At the time of writing, the Bill is currently in the House of Lords and is being considered at the Committee Stage.
This article provides a whistlestop tour of all the upcoming changes and how these will affect you, whether you’re renting a property or are the landlord of a property.
Overview of the Renters’ Rights Bill
The purpose of the Bill is to reform the residential rental market in England. The Bill will notably abolish assured shorthold tenancies and Section 21 “no fault” evictions. The Bill will apply to private landlords, tenancies that are provided by private registered providers of social housing and supported accommodation and to landlords who provide temporary accommodation to homeless households on the behalf of their local authority. We have set out below the key changes that are going to impose by the Renters’ Right Bill.
Abolish Section 21 Evictions
The current position is that landlords can evict tenants who have an assured shorthold tenancy under Section 21 of the Housing Act 1988. A Section 21 notice can evict tenants either after the end of a fixed term tenancy, so long as there is a written contract in place, or during a tenancy that has no fixed end date, which are otherwise known as periodic tenancies.
The new Act will provide security to tenants whereby all assured tenancies will be periodic tenancies. This provides tenants with extra security that they cannot be evicted from their property without a valid reason. Further to this, tenants will have the ability to end their tenancy at any point during the tenancy by serving two months’ notice, giving both parties further flexibility to adapt to any changes that may arise during a tenancy.
The abolishment of Section 21 Notices will mean it will no longer be possible for landlords to seek to recover possession of properties under a “no fault” basis.
In future, a landlord will only be able to recover possession of a property if they serve a Section 8 notice and they rely on one or more of the grounds for possession contained in Schedule 2 of the Housing Act 1988, which will need to be proven at court.
Furthermore, the Bill proposes strengthened rights for landlords to reclaim their property, when necessary, for example, if they seek to sell the property or move into the property. Tenants will have the benefit from a 12-month protection period at the start of a tenancy, during which time a landlord cannot evict them to move in or to sell the property.
While it has been proposed that the statutory grounds for possession will be widened, the requirement to provide a reason for seeking possession of a property will inevitably make it harder for landlords to recover possession of their property if they are unable to show one of the statutory grounds. On the other hand, new safeguards will be introduced to allow tenants more time to find a home if a landlord is relying upon the ground that they want to move into the property or seek to sell it. Landlords will still be able to increase rents to market price for their properties and an independent tribunal will make a judgement on this if deemed necessary. One concern on this from a tenant’s perspective is that a Landlord could increase their rent to a level that is deemed excessive and has been purposely set at that level to push a tenant into rent arrears so that a Section 8 Notice can be served on them. Landlords will only be able to increase rent to a market level.
New protections will be put in place for those who fall temporarily into rent arrears. The mandatory threshold for eviction will be increased from 2 months to 3 months’ rent arrears. If rent is paid weekly or fortnightly, this time period will be 13 weeks.
It may be the case that tribunals will be inundated with applications in relation to rent increases which will lead to long wait times to go before the tribunal and receive judgment.
Introduction of a new Private Rented Sector Landlord Ombudsman
The Ombudsman will aim to provide quick, fair, impartial and binding resolutions for tenant’s complaints about their landlord. The aim is to ensure that the tenant-landlord complaint resolution procedure is on the same level as the redress practice for tenants in social housing and consumers of property agent services.
Again, concerns are growing regarding how inundated the Ombudsman will be which could lead to tenants being left in difficult circumstances regarding their rental property. Time will only tell how effective this service will be.
Creation of a Private Rented Sector Database
The aim of the database is to help landlords understand their legal obligations and give compliance advice which in turn will give landlords confidence in their position. The database will also provide helpful information to tenants to allow them to make informed decisions when entering into a tenancy agreement. The database will contain information such as names of current or future residential landlords.
Give tenants strengthened rights to request a pet in the property
Under the Bill, landlords must consider and cannot unreasonably refuse a request for a tenant to keep a pet in the home. Section 16A will create this new right for a tenant to request permission to have a pet and the right will be implied into every assured tenancy. Currently, there is no statutory right for a tenant to keep a pet at their rental property or to make a request to have a pet.
Landlords will be able to require a tenant takes out pet insurance to ensure any damage to their property because of their pet will be covered.
Apply Awaab’s Law to the sector
Following the death of two-year-old Awaab Ishak due to prolonged mould exposure in his social rented home, Awaab’s Law was introduced for social housing through the Social Housing (Regulation) Act 2023.
The Bill proposes to extend Awaab’s Law to privately rented homes and properties that are occupied under licence. It will ensure that all renters are able to challenge landlords on unsafe and dangerous home conditions and that landlords must take quick action to ensure that their properties are safe for their tenants. Landlords will have to address issues such as damp and mould within a specified time. The Government have stated that they will include further details as to what these timescales will be in due course.
Make it illegal for landlord and agents to discriminate against prospective tenants in receipt of benefits or with children
The proposed bill would prohibit a landlord from discriminating against prospective tenants who would have a child living with them or visiting the property. This will only apply to landlords in the private rented sector. Blanket polices or practices that would have the effect of deterring a tenant who would have children either living with them or visiting the property will also be prohibited.
Similarly, a prospective landlord must not prevent someone from enquiring about a property, viewing a property or taking a tenancy of the property on the basis that the prospective tenant claims benefits. Again, blanket policies or practices would also be prohibited.
End the practice of rental bidding by prohibiting landlords and agents from asking for or accepting offers above the advertised rent
When a landlord advertises a property for rent, the amount of the proposed rent for the property must be specified in any form of advert for the property. The landlord must not invite or accept any offers of rent that are higher than the rent that is stated on the advert for the property.
Financial penalties can be imposed by the local housing authority for landlords who have failed to advertise the proposed rent for the property or invited/accepted rent that is higher than that which is stated in the advert.
Strengthen local authority enforcement
Local housing authorities will be given the ability to impose a fine of up to £40,000 for breach of Section 1 of the Protection from Eviction Act 1977 regarding unlawful eviction and harassment of an occupier of a property. This is as an alternative to pursuing a criminal conviction.
Strengthen rent repayment orders
The Bill will extend the circumstances in which rent repayment orders may be made. The Bill will require landlords who commit specified offences to repay rent to their tenants.
The Renters’ Rights Bill will be a divisive piece of legislation. While it will seemingly strengthen the position of tenants, it is understandable that on the face of it, landlords are concerned about the changes, given that Section 21 Notices will be abolished, and they may run the risk of being prone to fines and penalties for not following the new proposed law. The intention of the Bill is to resolve the unbalanced relationship between landlord and tenant however it appears the Bill does weigh heavily in the tenant’s favour.
For expert legal advice on the Renters’ Rights Bill and how this could impact on you, contact our Property Litigation team at Chadwick Lawrence today. Our specialist property litigation team is here to help with any questions or issues you may be facing. We offer consultations over the phone, via video call or in person at one of our offices across West Yorkshire.
Call us: 0800 015 0340
Email us: newenquiries-proplit@chadlaw.co.uk
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