The Renters’ Rights Bill has reached a significant milestone, now moving to the Committee stage following its second reading on 4 February in the House of Lords. This comprehensive legislation aims to overhaul the rental market in England, Scotland, and Wales; providing greater rights and protection for tenants.
One of the most anticipated changes is the abolition of Section 21 “no-fault” evictions, which have long been a source of anxiety for renters. The Bill introduces new, clear and expanded possession grounds to ensure that landlords have legitimate reasons for evictions, closing any existing loopholes.
To support tenants in poor quality homes or facing circumstances like domestic abuse, the Bill proposes periodic tenancies. This will allow tenants to give 2 months’ notice at any point, facilitating their ability to move to better accommodation.
A new possession ground, specifically for landlords renting to students in HMOs is also being introduced. This will enable landlords to seek possession ahead of each new academic year, aligning with the cycle of short-term student tenancies. However, private purpose-built student accommodation will be removed from the assured tenancy system to protect the student market.
Rent increases will be subject to new regulations, preventing landlords from using unfair increases as a backdoor eviction method. Landlords will only be able to increase rent once a year, following the Section 13 process.
While a mandatory repeated rent arrears ground will not be included, the threshold for eviction under the mandatory rent arrears ground will be increased from 2 to 3 months. Additionally, new laws will be enacted to end rental bidding wars, requiring landlords and letting agents to publish an asking rent and prohibit them from accepting higher offers.
The Bill also limits the amount of rent a landlord can require in advance after the tenancy has been signed to a maximum of 1 month before the tenant has taken possession and prohibits terms that require rent payment prior to the due date.
Discrimination against tenants based on benefits receipt or having children will be made illegal. Local Councils will have enforcement powers to address unlawful rental discrimination practices.
The Bill will ensure landlords do not unreasonably withhold consent when a tenant requests to have a pet in their home; with tenants able to challenge unfair decisions. The Bill allows landlords to require insurance covering pet damage.
For the first time, the Decent Homes Standard will apply to the private rented sector, ensuring properties are safe, secure, and free of hazards. A consultation on the content of this standard will be launched in the coming months, with further information on implementation timelines to follow.
The private rented sector database will continue to be explored to determine what information is necessary to support informed rental experiences and aid local authorities in enforcing health and safety standards.
The Bill strengthens local councils’ enforcement powers and introduces a new requirement for councils to report on enforcement activity. It also includes an enforcement framework, with new maximum penalties of £7,000.00 for initial or minor compliance and £40,000.00 for serious, repeat, or persistent noncompliance.
Rent repayment orders will be enhanced, ensuring that superior landlords and company directors can be held liable. The maximum amount a landlord can be ordered to pay will be doubled from 1 to 2 years’ rent.
New investigatory powers will facilitate local councils in identifying and fining unscrupulous landlords. Authorities will be able to request information from third parties, enter business premises, and—in limited circumstances—residential premises to gather evidence. These powers will include safeguards to ensure appropriate and proportional use.
The new tenancy system for the private rented sector will be introduced in one stage, applying to all private rented tenancies. Existing tenancies, including those with fixed terms, will convert to the new system, and new tenancies signed after the date will also be governed by the new rules.
At the conclusion of the second reading, it was decided that the Bill be sent to the Committee stage, marking the next step in its journey towards becoming law.
The Bill is anticipated to become law after Easter 2025, once it receives Royal Assent. Royal Assent is the final step required for a bill to become law.
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