An imbalance currently exists in the rental market, where landlords often hold disproportionate power over tenants. While many landlords provide quality housing and services to their tenants, a significant minority exploit their position, employing unfair and discriminatory practices to maximise profits. The new Labour government aims to address this imbalance through the Renters' Rights Bill, which introduces protections that redress the power dynamics between landlords and tenants.
This may feel familiar: the Bill follows previous attempts from the Conservative government to introduce similar protections, which did not eventually materialise (e.g., the Renters Reform Bill, introduced to parliament in May 2023). The Renters' Rights Bill, therefore, marks a renewed push from the new government to introduce essential reform. If enacted in its current form, the Bill will have three main beneficial impacts on the housing sector.
1. Renter Protection
The Bill first introduces crucial protections for tenants. The Bill's most notable reform is the abolition of s21 – or 'no fault' – evictions, which enable landlords to evict tenants without cause, as long as the legal process is followed. For unscrupulous landlords however, this can be exploited in several ways, with countless cases emerging of tenants reporting necessary repairs or resisting arbitrary rent increases, but instead receiving s21 evictions from their landlords, as opposed to alleviation of the issues at hand. Some tenants therefore refrain from raising concerns for fear of eviction.
Abolition of s21 evictions would reassure tenants that they can report issues, without the threat of retaliatory eviction, with the Bill protecting both new and existing tenancies. Last year, nearly 26,000 households faced homelessness due to s21 evictions and had to go to their council for support (GOV.UK, 'Landmark reforms to give greater security for 11 million renters, 11 September 2024). Abolition of this practice would therefore provide a newfound protection within the housing sector.
In addition, the Bill extends Awaab's Law. After 2-year-old Awaab Ishak died from mould exposure in his socially rented home in 2020, landlords became legally required to abide by new requirements about hazardous conditions. The Renters' Rights Bill rightly extends this law into the private rented sector, ensuring all individuals can challenge poor conditions.
The Bill also addresses in-tenancy rent increases, limiting these to once a year. Over 60,000 renters were forced out of their homes by rent increases in the last year (Polly Neate, 'Shelter UK' Chief Executive). It is expected that the Bill would reduce this number dramatically.
2. Newfound Stability
Next, the Bill seeks to introduce stability to renters, who have historically faced frequent disruption. A key provision is the introduction of a 'protected period', which shields tenants from eviction within their first year in a new tenancy agreement. This prevents individuals and families from constantly being forced to move location and mitigates disruption to their lives and the associated issues with constant relocation.
Furthermore, eviction notice periods will be increased from 2 to 4 months, providing tenants more time to secure alternative housing. This extended notice period is designed to reduce homelessness, with short notice periods contributing to this issue. Both reforms provide a new level of stability for renters, due to the reduction in landlord discretion in eviction proceedings.
3. Widening market access
The final main impact of the Bill is the broadening of access to the housing market. A key reform is the abolition of blanket bans by landlords on tenants with children, or those in receipt of benefits, enabling more individuals to gain housing in the first instance.
The Bill also prohibits 'bidding wars', where landlords leverage the housing crisis by making prospective tenants bid on properties. The Bill legally requires landlords and letting agents to publish an asking rent for their property, and bans them from asking for, encouraging, or accepting any bids above this price. Interestingly, the Bill also creates the right for all tenants to ask to keep a pet in their home, with landlords unable to 'unreasonably refuse' under the new legislation.
The Bill broadly therefore enables more individuals to tap into the housing market where they may not have previously been able - particularly significant amid the existing housing crisis.
While the Bill has the potential to bring significant benefits to the housing sector, the Bill has not come without its critique, however. Firstly, these measures will only succeed if supplemented by "robust" enforcement by Councils, as the Chief Executive of the National Residential Landlords Association underlines. Moreover, some individuals have critiqued the Bill for its potential to worsen the housing crisis by reducing the supply and affordability of rental properties, as landlord power is reduced, and responsibility to maintain standards increased. Conversely, others think the Bill doesn't go far enough, calling for caps on rent in advance - which can prevent low-income individuals from gaining housing -, and a limit on the amount by which rent can increase in a year, among other reforms (Shelter UK).
Deputy Prime Minister, Angela Rayner, correctly asserted that a rebalancing of the relationship between tenant and landlord is required. She followed this by saying the Renters' Rights Bill 'will do just that', and while the Bill holds promise, only time will reveal its true impact. Nonetheless, with its potential to enhance renter protection, provide greater stability, and broaden market access, the future looks hopeful for millions of renters who stand to benefit from these reforms.
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