Last Updated: September 2024
In September 2024 the Renters’ Rights Bill, designed to reform the private rental sector, had its first reading. We have outlined the changes within the first draft of the legislation below. It is also important to note that as this is the first reading of the bill, that there may be significant changes made as this matter progresses:
Tenancy & Possession
- Section 21 notices will be abolished- meaning ‘no fault evictions’ will no longer be permitted under law. Any notices served under this notice before the new legislation comes into effect will remain valid and enforceable.
- Section 8 notice grounds will be modified to allow a Landlord to serve a notice to end a tenancy if they need to sell their property or if they or their family members need to use the house as their permanent residence. These notices cannot be served within the first 12 months of a tenancy and the period of the notice must be at least 4 months. If a notice is served under these grounds, the Landlord will not be permitted to remarket the property to let for 12 months after the notice expires.
- The ground under Section 8 allowing Landlords to serve a 2 week notice if a Tenant is in 2 months of arrears will be amended. Landlords will be able to serve a 4 week notice once a Tenant is 3 months in arrears.
- Fixed term tenancies will be abolished, the reforms will convert all tenancies to period terms. Tenants will be able to end their tenancies at any stage by serving two months’ notice to vacate.
- Landlords and Agents will not be able to discriminate against Tenants who are claiming benefits or have children.
- ‘No pet’ tenancies will no longer be permitted unless the Landlord has reasonable cause to refuse this request. Tenants can be asked to take out mandatory pet insurance to cover any excess damage caused to the property during their tenancy.
Tenancy Negotiations & Rent Increases
- Rental bidding wars will no longer be permitted; this is to prevent Landlords and Agents accepting rents above listed values.
- Rent increases imposed during tenancies are limited to one annual rent increase that is capped at the market value of the house. A 2 month notice period will need to be given to implement rent increases. Tenants will be able to challenge increases via First-tier Tribunal, and any increases that are contested will not be payable until the tribunal has adjudicated.
Housing Standards & Enforcement
- The government will be introducing a ‘Decent Homes Standard’ that will need to be met. Fines of up to £7,000 may be imposed if these standards are not met.
- Awaab’s Law will be extended to apply to the private rental sector. This will set out timeframes for Landlords to address houses with ‘serious hazards’.
- A digital private rented sector database will be created that will provide information to Landlords, Tenants and Councils about the industry, legislation and compliance.
- Local authorities will be given greater powers to investigate and enter privately rented properties to ensure that Landlords are complying with existing and new legislation. Financial penalties will be ‘substantially increased’ for those who are found non-compliant.
- A new ombudsman service will be introduced to help resolve issues between Landlords and Tenants. The government have said this will be fair and impartial and reduce the need for the courts to be involved in these disputes.
