The first reading of the renamed Renters' Rights Bill has brought a lot to consider. While a few landlords have expressed concern over the proposed legislation, it's still early, and we’ll have to wait for more concrete updates. However, there are already a few notable changes compared to the previous government's proposals. Here is a brief summary.
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Abolishing Section 21 Evictions: The bill seeks to eliminate "no-fault" evictions under Section 21 and move to a simpler tenancy model where all assured tenancies are periodic. The new system will be rolled out in one stage, immediately.
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Fair Possession Grounds: The bill introduces balanced possession grounds, giving tenants more security while ensuring landlords can reclaim their property for legitimate reasons, such as moving in or selling. New safeguards will also allow tenants more time to find alternative housing.
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Stronger Protection Against "Backdoor Evictions": Tenants will be able to appeal excessive rent increases. While landlords will still be able to raise rents to market value, an independent tribunal will handle disputes, ensuring fair outcomes.
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Private Rented Sector Landlord Ombudsman: A new ombudsman will be introduced to provide quick, impartial, and binding resolutions to tenant complaints, similar to redress systems in social housing and property agent services.
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Private Rented Sector Database: This database will help landlords understand their legal obligations and demonstrate compliance. Local councils will also use the database to target enforcement efforts where needed. Landlords must register to use certain possession grounds.
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Tenants’ Rights to Have Pets: Tenants will gain stronger rights to request pets, and landlords must consider these requests reasonably. Landlords can require pet insurance to cover any potential damage to the property.
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Decent Homes Standard: The Decent Homes Standard will be applied to the private rented sector, ensuring tenants have access to safer, higher-quality homes, and reducing the prevalence of substandard housing.
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Awaab’s Law: This will establish clear legal timeframes for landlords to address serious hazards in rented properties, ensuring swift action to make homes safe.
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Anti-Discrimination Measures: It will become illegal for landlords and agents to discriminate against prospective tenants who receive benefits or have children.
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Ending Rental Bidding Wars: The practice of rental bidding will be prohibited. Landlords and agents will be required to advertise an asking rent, and it will be illegal to accept offers above that rate.
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Strengthening Local Authority Enforcement: Local authorities will have expanded powers, including civil penalties and new investigatory tools. They will also be required to report on their enforcement activities to increase transparency.
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Enhanced Rent Repayment Orders: The bill will extend rent repayment orders to superior landlords, double the maximum penalties, and ensure that repeat offenders repay the full amount.
- Periodic Tenancies: Under the Renters’ Rights Bill, fixed-term assured tenancies will be abolished. In their place, all tenancies will become periodic, allowing tenants to remain in their homes until they choose to end the tenancy with 2 months' notice.
