Helen Davis ◦ 13 min read
Last updated on 12 September 2024
Autumn Statement 2023 houses of parliament
Big changes are on the horizon for the rental market, with the Renters’ Rights Bill, introduced by the Labour Government on 11th September 2024. This is a public bill that was formally presented to Parliament and given its First Reading in the House of Commons. While this stage involves no debate, it marks the beginning of a significant shift in how tenancies will be managed across the UK.
The Second Reading, where MPs will debate the bill, is scheduled for Wednesday 9th October 2024, and from there, the bill will continue its journey through Parliament. The reforms within this bill are designed to offer greater protections for tenants, but they also bring significant changes for landlords. Here’s what you need to know about what’s coming and how to prepare.
What changes are on the horizon?
Goodbye to “No-Fault” Evictions
One of the most talked-about changes is the end of Section 21, commonly known as “no-fault” evictions. This means landlords will no longer be able to ask tenants to leave without a reason. Instead, you’ll need a valid, legally defined reason for ending a tenancy, such as rent arrears or wanting to sell the property.
Understandably, many landlords are concerned that this will make it harder for them to regain possession of their properties. Ben Beadle, head of the National Residential Landlords Association (NRLA), has highlighted that landlords will need time to prepare for this change. On the other hand, tenant advocacy groups, like Generation Rent, see this as a long-overdue reform, giving renters more security.
Rent Increases and Bidding Wars
Under the new rules, landlords can only increase the rent once a year, which must align with market rates. The idea is to provide tenants with more stability and prevent unfair rent hikes.
The bill will also stop rental bidding wars. From now on, landlords and agents will need to publish an asking rent, and they won’t be able to accept offers above this price. This could be a welcome change for tenants, especially in high-demand areas where bidding wars have pushed higher rents.
Tenant Protections: Pets, Benefits, and Families**
The Renters’ Rights Bill also aims to make the market fairer by stopping landlords from discriminating against tenants who have children or receive benefits.
Additionally, tenants will have the right to request to keep pets in their homes, and landlords will need a good reason if they refuse. You can still ask tenants to take out pet insurance to cover potential damage, but blanket “no pets” policies will be a thing of the past.
Awaab’s Law and the Decent Homes Standard
Named after a tragic case involving a toddler who died due to mould exposure, Awaab’s Law will now apply to private rentals.
Landlords must fix serious health hazards like dampness or mould within a set timeframe or face penalties. The Decent Homes Standard will also apply to private rentals, ensuring properties are safe and habitable.
What Are Landlords Saying About the Renter’s Rights Bill?
Reactions from landlords have been mixed. Many are concerned about how these changes will affect their ability to manage their properties. The NRLA has pointed out that while most landlords aim to provide safe, comfortable homes, they need sufficient time to adjust their practices and comply with the new rules. There’s also a worry that without reforms to the court system, handling disputes or evictions may become even more time-consuming.
On the other hand, tenant groups are relieved to see these reforms finally coming through. They believe the changes will offer better protections for renters and help prevent the unfair practices that have plagued the market for years.
Preparing for the Changes
With the Renters’ Rights Bill expected to become law by the summer of 2025, there’s still time to prepare. Start by reviewing your tenancy agreements, updating your policies on pets and rent increases, and ensuring your properties meet the Decent Homes Standard. It’s also a good idea to stay informed about how the bill progresses, as MPs and peers may propose further changes before it becomes law.
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