Parts of the Renters’ Rights Bill which includes significant measures such as the abolition of Section 21 are expected to become law by the end of Spring 2025. However, certain aspects of the Bill may be introduced gradually or postponed, depending on the Government’s response to advocacy, lobbying efforts, and House of Lords critiques.
The Bill’s 3rd reading took place on January 14, 2025, marking the conclusion of the Commons stage. It then advanced to the House of Lords for its first reading on January 15, 2025, with the 2nd reading scheduled for February 4. Following this, the Bill must pass the Committee, Report, and 3rd reading stages in the Lords before the Government considers any amendments, leading to Royal Assent. The earliest the Bill could come into effect is two months after receiving Royal Assent.
There were several key amendments that the government introduced during the 3rd reading in the Commons, including:
Despite pressure from Labour backbenchers and Green MPs, the Government has maintained its stance against the introduction of rent controls.
The Renters’ Rights Bill will convert all fixed-term assured shorthold tenancies (ASTs) into periodic tenancies upon implementation. This means any fixed-term tenancy agreements signed before the Bill becomes law will automatically transition to periodic tenancies once it takes effect. For example, a two-year tenancy signed in January 2025 would immediately become periodic if the Bill were enacted in April 2025.
This tenancy reform aims to provide tenants with greater security and empower them to challenge poor practices without fear of retaliatory eviction. However, research from Goodlord’s State of the Lettings Industry report indicates that 58.5% of tenants prefer fixed-term, renewable agreements, while only 29.7% favour rolling, open-ended agreements.
The UK Government’s Renters’ Rights Bill is set to introduce significant changes to the rental landscape, directly impacting the relationship between landlords and tenants. As we prepare for the implementation of this legislation, it is crucial for landlords to understand the upcoming modifications and their implications for property management. Below is a summary of the key changes and considerations.
A central feature of the Renters’ Rights Bill is the abolition of Section 21 evictions, which allows landlords to evict tenants without needing to provide a reason. This change will lead to a simpler tenancy structure where all assured tenancies are periodic. This shift is designed to provide tenants with greater security and empower them to challenge poor practices and unfair rent increases without the fear of eviction. The new system will be implemented in one stage, ensuring immediate security for all tenants.
The Bill will ensure that possession grounds are fair to both parties. While tenants will gain increased security, landlords will still have the ability to recover their property when reasonable. New safeguards will provide tenants with more time to find alternative housing if they are evicted for the landlord’s intention to move in or sell the property. The legislation aims to prevent unscrupulous landlords from misusing possession grounds.
To protect tenants from backdoor evictions, the Bill introduces provisions to appeal against excessive above-market rents designed solely to force tenants out. Although landlords will still be permitted to increase rents to reflect market prices, an independent tribunal will adjudicate disputes regarding excessive rent increases.
The Bill will introduce a new Private Rented Sector Landlord Ombudsman. This service will provide a quick, fair, impartial, and binding resolution for tenant complaints regarding their landlords. This development aims to align tenant-landlord complaint resolution with established practices in social housing and property agent services.
A Private Rented Sector Database will be created to help landlords understand their legal obligations and demonstrate compliance, thereby giving responsible landlords confidence in their position. This database will also assist local councils in targeting enforcement where it is most needed. Registration on the database will be required for landlords wishing to use specific possession grounds.
Tenants will have strengthened rights to request a pet in their rental property. Landlords must consider these requests and cannot unreasonably refuse them. To mitigate potential damages, landlords may require tenants to have pet insurance.
The Bill will apply the Decent Homes Standard to the private rented sector, ensuring that all rental properties are safe and provide good value. This measure is part of the Government’s commitment to eliminating poor-quality homes in local communities.
Under ‘Awaab’s Law’, landlords in the private rented sector will be expected to act within clear timeframes to address serious hazards in their properties. This change aims to ensure swift action on health and safety concerns.
The legislation will make it illegal for landlords and agents to discriminate against prospective tenants who receive benefits or have children, ensuring everyone is treated fairly when seeking accommodation.
The Bill will end the practice of rental bidding, prohibiting landlords and agents from asking for or accepting offers above the advertised rent. Landlords must publish an asking rent for their property, making it illegal to accept offers exceeding this amount.
Local authority enforcement will be strengthened through expanded civil penalties, new investigatory powers, and a requirement for local councils to report on their enforcement activities.
Rent repayment orders will be strengthened, extending them to superior landlords, doubling the maximum penalty, and ensuring that repeat offenders repay the maximum amount.
As a Complete landlord, it’s essential to start preparing for these changes.
For more detailed information, please visit the UK Government Guide to the Renters’ Rights Bill.
At Complete, we will keep you updated with any changes to legislation and communicate the important actions you need to take. By familiarising yourself with these changes, updating your practices, and ensuring compliance, you can effectively manage your properties in this evolving regulatory landscape.
We are here to support you through these transitions. Our team is ready to assist with any questions or concerns you may have regarding the Renters’ Rights Bill, ensuring you are well-prepared to meet the new requirements with confidence.
To chat with an expert, connect with us today.
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