The Renters' Rights Bill has progressed quickly and is expected to be passed as law after April 2025.
The Bill aims to reform the private rental sector, including abolishing Section 21 evictions, ending fixed term tenancies and introducing a single system of periodic tenancies.
Here is a recap of some of changes the new legislation will introduce:
- No more section 21 evictions – the no fault route of recovering possession of a property under section 21 of the Housing Act 1988 will be abolished providing greater security for tenants.
- New grounds for possession – a landlord's ability to recover possession relying on section 8 of the Housing Act 1988 grounds will be redefined and expanded.
- No more fixed term tenancies – Assured Shorthold Tenancies will be replaced with a single system of periodic tenancies in order to create more flexibility for tenants.
- Limited rent increases – landlords will only be able to increase rent once per year providing at least two months' notice of any rent change.
- End to discrimination – the bill aims to end rental discrimination by, for example, preventing payment of extortionate rent in advance or exclusionary guarantor requests.
- Awaab's law – will be introduced to ensure that the safety and quality of housing is improved.
- No rental bidding – the bill will ban rental bidding so landlords will have to let their properties at an advertised rate and will not be able to accept additional rent from a higher bidder.
- A landlord cannot unreasonably withhold consent to keep a pet – a tenant can seek permission from a landlord to keep a pet at the property, with an obligation placed on the landlord not to unreasonably withhold consent with some exceptions.
- Ombudsman and Redress Scheme Requirements – Landlords will be required to comply with a structured complaint resolution process with penalties for non-compliance and a new private rented sector landlord ombudsman will be established.
- New private rented sector data base – it will be compulsory for all landlords to register with a new landlord database prior to marketing properties for let with some grave consequences for non-compliance including fines and prohibition from recovering possession of the property under section 8 of the Housing Act 1988.
We are committed to guiding clients through these evolving legal landscapes, ensuring you are well-prepared for the changes ahead.
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