Back in September 2024, the Government introduced the Renters' Rights Bill, aiming for implementation by summer 2025. That deadline has been delayed – it has not yet been implemented or passed, and it will not be revisited until Parliament returns after the summer recess. With cross-party support and roots in Labour's manifesto, why the delay? And what has changed during the Bill's journey through Parliament?
In this article, we explore the journey of the Renters' Rights Bill, its delayed progress through Parliament, and the legal reforms impacting evictions, student tenancies, rent reviews, and pet policies.
Court delays: just when you thought it couldn't get slower...
A core reform is abolishing "no-fault" (section 21) evictions, requiring landlords to prove a ground to regain possession. This, along with new tenant rights to challenge the initial rent and all rent increases, is expected to increase the court caseload.
Courts are still struggling with pandemic era backlogs and there is concern that they will not cope with the increase in cases, leaving landlords facing many months before being able to legitimately evict tenants or collect a properly increased rent.
Although the Government has refused to delay the Bill pending court reform, it has offered a limited compromise – if, as is feared by many landlords, tenants routinely challenge rent to stall increases on the basis any uplift is only payable once the increase has been sanctioned by the Tribunal, ministers may make regulations to allow backdated rent.
A degree in legal ambiguity: navigating the student accommodation maze
The Bill also ends fixed-term tenancies, with nearly all new and existing tenancies moving to open-ended periodic terms. This poses issues for student rentals, which rely on academic-year cycles.
Purpose-Built Student Accommodation (PBSA) has now been carved out, allowing fixed terms going forwards. Existing PBSA tenancies, however, will become periodic but benefit from a special possession ground allowing landlords to terminate the lease in time for the new intake of students each September.
Meanwhile, Houses in Multiple Occupation (HMOs) will have their own possession ground to cope with student turnover. The Lords added an amendment to extend this to all student tenancies, not just HMOs, but it remains uncertain whether this will be retained when considered by the Commons.
Show me the money (but not too much upfront)
The Bill caps advance rent payments at one month, despite arguments for exceptions where tenants lack income, credit history, or guarantors. It also scraps rent review clauses, mandating market-based increases only.
Proposed amendments (e.g. linking increases to inflation or making exceptions for senior living/BTR schemes where comprehensive services are provided) have so far been rejected.
Pets: A furry flashpoint
The right to request a pet is in, but landlords can't unreasonably refuse. The original plan to require pet insurance has been dropped, and debate now centres on whether landlords can ask for an extra three weeks' rent as a pet deposit. Clearly, pet ownership remains close to many MPs' hearts.
Steady progress
While much of the spotlight has fallen on the more controversial reforms, other key provisions of the Bill have progressed with less resistance. Measures to improve housing standards, end discriminatory practices and introduce more transparency in the private rented sector have remained largely intact.
Next steps for landlords
The Bill has cleared the Lords but may undergo further amendments between the Houses before passing. The Bill will be revisited after 1 September when Parliament reconvenes ahead of party conference season.
Until then, landlords should review their portfolios and consider what updates may be needed to their tenancy precedents when the Bill gets royal assent.
Read the original article on GowlingWLG.com
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.
