By now, many landlords and tenants will be aware of what was known as the Renters Reform Bill proposed by the Conservative government before the dissolution of Parliament. A summary can be found here.
During the 2024 General Election, Matthew Pennycook, the then Shadow Minister for Housing and Planning, announced Labour’s plan to abolish Section 21 Notice evictions within their first 100 days, should they rise to power.
Labour appears to have followed through with this intention. On 11 September 2024, it published and introduced a Renters’ Rights Bill. This was similar to the Renters Reform Bill proposed by the Conservatives that would abolish Section 21 Notice evictions.
It is therefore clear that one way or another, there will be a ‘shake up’ to the rental sector, which is imminent.
Naturally, renters welcome this bill as it provides stronger protections compared to the bill proposed by the Tories previously. However, this is notably a point of concern for landlords to ensure that the housing sector is prepared for the change and that these changes can be implemented properly.
Housing Minister, Matthew Pennycook, has indicated that he expects the bill to make its way through Parliament quickly, with the view to have the new system in place by summer 2025.
Some notable areas of inclusion within the Renters’ Rights Bill are:
- Fixed-term tenancies: All fixed-term tenancies will be abolished and changed to ‘periodic’ tenancies of one month at a time.
- Amendments to Section 8 grounds: A series of amendments will be implemented to the current Section 8 grounds.
- Pets: Tenants will have the right to request a pet, which landlords cannot unreasonably refuse.
- Bidding wars: There will be a ban on rental bidding wars with agents/landlords publishing an asking rent and banned from asking, encouraging or accepting a higher bid.
- Rent increases: Landlords will only be permitted to increase the rent once per year in line with the market rate.
- Living conditions: Landlords will be fined if homes do not meet the ‘decent homes standard’.
- Awaab’s law: This will be extended to the private rented sector. It will set out deadlines for landlords to deal with issues such as mould and damp.
- Discrimination: It will be illegal for landlords to discriminate against tenants who receive benefits or have children.
- Dispute resolution: There will be support for quicker and cheaper resolution when there are disputes between landlords and tenants.
- Digital database: A new private rented sector database will assist landlords and tenants.
If you are concerned about the changes and your ability to obtain possession of a property in the future, we recommend you seek advice now about your position.