RENTER’S RIGHTS BILL
UPDATE # 01
I’m sure you will have heard the news about the Renters Rights Bill a new government bill which will change the face of the PRS. In the below article, we will touch upon the changes the bill may bring about and what you need to know.
There are big changes coming and there will be landlords who leave the market as a result. It is important to stress that we are across the legislation and the updates, and will be here to provide our current and future landlords with all of the advice you need to be prepared going into this changing marketplace.
Timothy Douglas – Head of Policy and Campaigns | Propertymark
The Conservative Party had, during their last parlimentary majority, started the process of working through their Renters Reform Bill. However, they did not have time to push the bill through the House of Lords before the end of their term in Government.
The Labour takeover; Kier Starmer had pledged to abolish Section 21’s within 100 days of power, this deadline has since passed, but the Ministry for Housing, Communities and local government have published the Renters Rights Bill. Their take on how to reform the Private Rented Sector.
So, What’s in the Bill?
- Abolish section 21 evictions and move to a simpler tenancy structure where all assured tenancies are periodic.
- Ensure possession grounds are fair to both parties, giving tenants more security, while ensuring landlords can recover their property when reasonable.
- Provide stronger protections against backdoor eviction by ensuring tenants are able to appeal excessive above-market rents which are purely designed to force them out.
- Introduce a new Private Rented Sector Landlord Ombudsman that will provide quick, fair, impartial and binding resolution for tenants’ complaints about their landlord.
- Create a Private Rented Sector Database to help landlords understand their legal obligations and demonstrate compliance (giving good landlords confidence in their position), alongside providing better information to tenants to make informed decisions when entering into a tenancy agreement.
- Give tenants strengthened rights to request a pet, which the landlord must consider and cannot unreasonably refuse.
- Apply the Decent Homes Standard to the private rented sector to give renters safer, better value homes and remove the blight of poor-quality homes in local communities.
- Apply ‘Awaab’s Law’ to the sector, setting clear legal expectations about the timeframes within which landlords in the private rented sector must take action to make homes safe where they contain serious hazards.
- Make it illegal for landlords and agents to discriminate against prospective tenants in receipt of benefits or with children, helping to ensure everyone is treated fairly when looking for a place to live.
- End the practice of rental bidding by prohibiting landlords and agents from asking for or accepting offers above the advertised rent.
- Strengthen local authority enforcement by expanding civil penalties, introducing a package of investigatory powers and bringing in a new requirement for local authorities to report on enforcement activity.
- Strengthen rent repayment orders by extending them to superior landlords, doubling the maximum penalty and ensuring repeat offenders have to repay the maximum amount.
Parliamentary process
It can take nine to twelve months for Bills to pass into law. The process includes ‘Readings’ in both the House of Commons and the House of Lords and will allow the opportunity for amendments to be tabled. Any amendments have to be agreed by both the House of Commons and the House of Lords after which the Bill can be sent to the King for Royal Assent and pass into law. It will then become an Act. As of today, The Bill has had two readings in the House of Commons and is now in the committee stage.
Many property professionals believe this bill may become law in the Summer of 2025.
