The Renters' Rights Bill was introduced into Parliament yesterday, 11 September 2024, for its first reading with the date for the second reading yet to be announced. The detail of the Bill can be found here: https://publications.parliament.uk/pa/bills/cbill/59-01/0008/240008.pdf
Much feels familiar to the Renters (Reform) Bill abandoned by the previous Government, although there are some crucial differences; for example it appears that a transitional period for the changes to be implemented for existing tenants is not included within the Renters' Rights Bill.
The key points highlighted in the Government announcement are as follows:
- Section 21 will be abolished and will be done in one stage for all tenants not just new tenancies.
- Fixed terms will also be abolished, meaning all existing tenancies that are fixed term will become periodic.
- New possession grounds will be introduced that will provide further safeguards for tenants and to avoid landlords misusing the grounds.
- All tenants will be able to appeal excessive above-market rents.
- A Private Rented Sector Landlord Ombudsman will be introduced, to provide a similar service for the private sector that the Housing Ombudsman provides for social housing landlords and tenants.
- A Private Rented Sector Database is to be established which will support Local Authorities target enforcement activity, and for tenants to obtain better information about landlords and properties before entering into a tenancy agreement.
- Tenants can request a pet in the property, this cannot unreasonably be refused. Landlords can require the tenants to take out pet insurance to cover damage to the property caused by pets.
- The Decent Homes Standard is to be applied to the private rented sector.
- "Awaab's Law" will be applied to the private rented sector, setting out clear legal expectations about time frames to which landlords must take action to make homes safe where they contain serious hazards.
- It will be illegal for landlords or agents to discriminate against prospective tenants in receipt of benefits or who have children.
- It aims to end the practice of rental bidding by prohibiting landlords and agents from asking for or accepting offers above the advertised rent.
- Local Authority enforcement powers will be strengthened, expanding civil penalties, introducing new investigatory powers and bringing in a requirement for local authorities to report on enforcement activity.
- Rent repayment orders will be extended to superior landlords, the penalty will be doubled and repeat offenders will be required to repay the maximum amount.
We will be following the Bill through Parliament and updating and providing training to our clients about what this may mean for them at key stages. For now, if you would like to discuss, please feel free to contact Anna Bennett or Donna McCarthy.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
