The private property rental market in England and Wales is set for an overhaul under the new Labour government’s proposed Renters’ Rights Bill.
The Bill, designed to give tenants in the private rental market greater protection, was included in this summer’s King’s Speech, which is used to outline Labour’s legislative priorities for the coming months.
Its inclusion will appease those left frustrated by the previous Conservative government’s Renters (Reform) Bill failing to receive royal assent before parliament was dissolved.
Renters’ Rights Bill
The Renters’ Rights Bill is intended to improve the private rental system for both the 11 million private renters and 2.3 million landlords in England.
Although the government acknowledged the valuable contribution made by “responsible” landlords who provide “quality” homes to their tenants, it believes that “too many renters are being exploited by a minority of unscrupulous landlords, unable to challenge bad practices because they could be evicted at any moment”.
The party hopes that the Renters’ Rights Bill will “level decisively the playing field between landlord and tenant by providing renters with greater security, rights and protections and cracking down on the minority of unscrupulous landlords who exploit, mistreat or discriminate against tenants with bad practices such as unfair rent increases intended to force tenants out, and pitting renters against each other in bidding wars.”
The briefing notes to the King’s Speech, made on 17 July 2024, set out the key features of the Renters’ Rights Bill. These include:
- Abolishing Section 21 ‘no fault evictions’. Under Section 21 of the Housing Act 1988, landlords can ask tenants to move out of a property without giving a reason (known as ‘no-fault evictions’). Labour has pledged to remove the threat of arbitrary evictions and introduce new clear and expanded possession grounds so landlords can reclaim their properties when they need to.
- Strengthening tenants’ rights and protections. The new government has said it will empower tenants to challenge rent increases and introduce new laws to end the practice of rental bidding wars by landlords and letting agents.
- Giving tenants the right to request a pet. Landlords must consider a tenant’s request and cannot unreasonably refuse. Landlords will be able to request insurance to cover potential damage from pets if needed.
- Applying a Decent Homes Standard. This will set minimum standards for living conditions in the private rented sector to ensure homes are safe, secure and hazard free.
- Introducing Awaab’s Law. The Bill includes a promise to set clear legal expectations about the timeframes within which landlords in the private rented sector must make homes safe where they contain serious hazards. This follows a similar law to improve the safety and health of tenants in social housing, which came into force in July 2023. This was introduced following a campaign led by Awaab Ishak’s parents after Awaab died in December 2020 from a respiratory condition caused by mould in his Rochdale social housing flat.
- Creating a digital private rental sector database to bring together key information for landlords, tenants, and councils. This centralised information source can be used by tenants when they are considering new tenancies and will enable landlords to quickly understand their obligations and demonstrate compliance. Councils will be able to use the database to target enforcement.
- Introducing a new ombudsman service. This will support quicker, cheaper resolution for both landlords and tenants when there are disputes and reduce the need to go to court.
- Making it illegal for landlords to discriminate against tenants in receipt of benefits or with children when choosing to let their property. Such anti-discrimination measures will ensure no family is discriminated against and denied a home when they need it.
- Strengthening local councils’ powers. New investigatory powers will make it easier for councils to identify and fine rogue landlords.
The Bill is still in its draft form and there is no timeline for when it will be introduced.
Landlord and Tenant Solicitors Blackheath
If you are a landlord or tenant looking for clarification about how the Renters’ Rights Bill will affect you, Beverley Morris & Co. Solicitors can help.
As a well-established and community focused local London law firm, we have advised numerous landlords on their obligations. We also advise tenants on their legal rights.
Should a dispute arise between landlord and tenant at any stage of the relationship lifecycle, our experienced Landlord and Tenant solicitors in Blackheath advise on the best course of action for the given situation and offer help and support at every stage.
To speak to our Landlord and Tenant solicitors today, call us on 020 8852 4433 or email enquiries@beverleymorris.co.uk.