Renters' Rights Bill

explainer guide

With the introduction of the new Labour government comes new legislation. It comes after the Conservative Government's Renters (Reform) Bill failed to pass through the House of Lords and become law. Now, the Labour Party is introducing its own version of the bill, called the Renters' Rights Bill. It was announced in the King's speech in July. 

What is the purpose of the Renters' Rights Bill?

The Renters' Rights Bill is a piece of legislation intended to improve the private rental sector (PRS). It introduces significant changes for property managers across the country. 

The government has pledged to "strengthen the rights of people who rent their homes", including abolishing Section 21 evictions, changing rules on pets, and introducing a new housing ombudsman. These changes will improve the system for England's 11 million private renters and 2.3 million landlords. 

The Labour Government said: "We will take action where the previous Government has failed. The Bill will give renters much greater security and stability so they can stay in their homes for longer, build lives in their communities, and avoid the risk of homelessness." 
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How is the Renters’ Rights Bill changing evictions?

Housing Act 1988 – Section 21 evictions

Section 21 "no-fault" eviction notices can be issued to evict tenants without a specific cause after a fixed-term tenancy ends or any time after the first four months of a periodic tenancy. 

Property managers may only serve a Section 21 notice once the tenant has lived in the property for at least four months. Then, the tenant should be given at least two months' notice after it has been served. If the tenants have not left the property by now, the landlord can apply for a possession order from the court within six months of the notice. 

It has been found that Section 21 evictions resulted in approximately 25,910 households threatened with homelessness in 2023, which is a record high. 

Usually, Section 21 is the preferred route when compared with Section 8. This is because it can take less time from notice to repossession and also saves the landlord the need for expensive court hearings and proceedings. The biggest distinction, however, stems from the significantly lower legal conditions under which a landlord can serve a possession notice.

 

What is the Renters' Rights Bill changing in Section 21?

The bill aims to abolish Section 21 evictions. Labour has committed to this, stating it will "take action where the previous government has failed". The end of Section 21 will give renters more security in their homes and help avoid the risk of homelessness. 

New possession grounds will also be implemented so landlords are able to reclaim their properties when they need to.

Previously, the Conservative Government had pledged to ban Section 21 only after the courts were reformed, but Labour has scrapped this measure. The government has said, “new clear and expanded possession grounds will be introduced so landlords can reclaim their properties when they need to". 

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Section 21 notices are still valid until the bill is passed.

Our guide provides more on Section 21.

Housing Act 1988 – Section 8 evictions

Section 8 outlines several grounds that are prerequisites for a landlord to obtain a court possession order. Section 8 notices are, in essence, eviction notices. These are planned to be strengthened under the new rules as Section 21 notices disappear.

 

What are the new grounds for possession under Section 8?

Under the new Renters' Rights Bill, landlords can still evict tenants using Section 8 grounds for possession. Landlords can issue this and give notice between two weeks and two months, depending on which terms the tenant has broken. Section 8 requires a landlord to serve a notice only if a tenant has done something wrong, which can often be rent arrears or a breach of the tenancy agreement. Court proceedings usually precede the final outcome, which can be either for or against the landlord. 

The existing grounds will remain in place. Find out what they are in our Section 8 Explainer Guide. 

How does Renters' Rights affect tenants' rights?

Rent increases

The Renters' Rights Bill will also introduce changes to the mechanism for rent increases, protecting tenants from unfair and unaffordable rent hikes. Labour wishes to level the playing field between landlord and tenant by "providing renters with greater security, rights and protections". It will also crack down on "the minority of unscrupulous landlords who exploit, mistreat or discriminate against tenants with bad practices such as unfair rent increases intended to force tenants out". 

The Renters (Reform) Bill proposed tenants be given a two-month notice period to review and potentially object to the proposed rent increase. During this two-month notice period, tenants would have had the right to file a complaint with the First-tier Tribunal (FTT) if they believed the rent increase was unjustified or disproportionate. It’s possible that Labour could draw on this for its legislation. 

Pet ownership

There is a significant demand for rentals that allow pets, but a survey found that just seven per cent of landlords advertise their properties as pet-friendly. 

Will it be easier to get a pet-friendly rental? Yes. This is because the bill will stop blanket "no pet" clauses imposed by landlords, meaning landlords need a legitimate justification to reject a tenant's request for a pet. 

If a tenant requests to bring a pet to live in the property, the landlord must respond within 42 days and must not unreasonably withhold their consent. Reasonable grounds currently include unsuitable pets, which comprises animals that are too big for the property or are poorly trained, HMOs where sharers object to the request for a pet, and live-in landlords, who have the same right to deny a pet as any other share. 

Landlords will be able to request the tenant buy insurance to cover potential damage from pets if needed. 

Decent Homes Standard

The Decent Homes Standard has existed since 2004 and applies to the social housing sector. 

Labour will now apply the Decent Homes Standard to the private rented sector. This will ensure homes are safe, secure and hazard-free and aligns with the Party's aim to tackle the blight of poor-quality homes. 

Awaab's Law

Following the death of Awaab Ishaak, legislation was introduced in July 2023 as part of the Social Housing (Regulation) Act. It dictates that landlords must fix dampness and mould within strict time limits. A consultation was launched on Awaab's Law to determine how long a landlord should be given to deal with hazards, which closed on 5 March 2024. 

The impact assessment that followed stated the government would monitor the volume of Awaab’s Law cases reaching county courts. It also committed to assessing the policy's impact on the prevalence of damp and mould in social homes. 

The new government wants to apply this to the private rented sector, setting clear legal expectations about the timeframes within which landlords in the sector must make homes safe where they contain serious hazards. 

Digital private rented sector database

A new database, which brings together key information on the private rented sector for landlords, tenants and councils, will help tenants make more informed decisions about entering new tenancies. It will also help landlords understand their obligations and demonstrate compliance, therefore providing certainty for tenants and landlords alike. 

Councils will be able to use the database to target enforcement where it is needed most. This goes hand-in-hand with Labour's promise to strengthen local councils' enforcement powers. New investigatory powers will make it easier for councils to identify and fine unscrupulous landlords and drive bad actors out of the sector.

New housing ombudsman

An ombudsman will be appointed to cover all private landlords. This brings the private rented sector into line with the social sector, which currently has its own Housing Ombudsman. 

Tenants can complain directly to the ombudsman about current and previous landlords, who will have the right to make binding decisions on compensation. 

Labour wishes to support a quicker resolution for landlords when disputes arise to avoid them escalating to expensive court proceedings.

 

Crackdown on discrimination

It will be illegal for landlords to discriminate against tenants who receive benefits or those with children when choosing who to let their property to. This means no family will be denied a home when they need it. 

 

When will the Renters' Rights Bill become law?

The Labour Party introduced the bill to Parliament with its first reading on 11 September, 2024. The second reading is due on 9 October.

These are the steps the bill will take through Parliament and into becoming law:

The bill's name is read in the Commons for the first time. 

The bill is returned to the House to be debated. 

Here, the bill receives detailed scrutiny of the text. Amendments tabled by the government and opposition are also discussed without a time limit. 

At the report stage, politicians have another opportunity to examine the bill and make any suitable changes. The third reading will follow, which is a chance to bring up any more amendments and votes. 

The bill is sent to the House of Lords. There, it is further debated, and the Lords can accept the changes made, reject them and change its stipulations themselves, or send the draft law back to the Commons. 

Once the Lords and the Commons have agreed, the bill moves forward to Royal Assent, where the monarch will sign it and make it law. 

In summary

Aiming to shake up the private rented sector, the Renters' Rights Bill promises more security by abolishing "no-fault" evictions, longer tenancies, fairer rent increases with landlords having to give two months' notice of any rent hikes and justification, easier pet ownership, and a stronger voice for tenants with a new housing ombudsman. 

Discover what else could change under the Labour Government in our blog, Property Law Changes To Expect After The General Election On July 4th. 

 

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