Renter’s Rights Bill – What does it mean for you?

Renter’s Rights Bill – What does it mean for you?

The Renter’s Rights Bill is currently going through the parliamentary process but is not yet in force. The First Reading of the bill was completed in September 2024 with the Second Reading presented less than 1 month after its introduction and completed in October 2024. This will now go to the Committee Stage where MPs will analyse the bill, debate and vote on suggested amendments and new clauses. Following that there will be the Call for Evidence, Report Stage and then the Third Reading.

The bill is expected to be passed by Summer 2025, and most of the proposals suggested will be immediately enforceable.

Key provisions of the Renter’s Rights Bill are:

Abolish Section 21s and expand grounds for possession

The Bill will remove fixed term assured tenancies and replace these with a periodic. This will allow tenants to give 2 months’ notice to end their tenancy. The UK Government believes this will allow tenants to feel secure in their tenancy and be able to challenge practices and unfair rent increases. Once the Bill has passed, Section 8 notices will be the only route for landlords to gain possession. Section 8 notice grounds are being amended and updated to support this.

End rental bidding wars

The Bill will enforce law that landlords and agents must publish an asking rent and will not be able to accept higher bids. Civil penalties of up to £7,000 may be enforceable for ignoring these rules.

Rights to request pets

The Bill will allow tenants the right to request pets. Landlord’s must fully consider requests and will not be unable to ‘reasonably refuse’. Landlords will be able to stipulate that tenants have insurance in place to cover potential damages. It will always be reasonable for a landlord to refuse if their superior landlord prohibits pets.

Decent Homes Standard and Awaab’s Law

A new Decent Homes Standard is to be implemented. If privately rented properties fail to meet the requirement standards, the local council will be able to enforce penalties.

Awaab’s Law will be extended to the private rental sector. This imposes strict conditions on landlords to investigate hazards such as damp and mould within a set timeline.

Introduce a Digital Database

A Property Portal will be created which will include vital information to agents, tenants, landlords and councils. Landlords, regardless of whether they use an agent, will be legally required to register themselves and their properties on the portal.

New Ombudsman

All landlords, regardless of whether they use an agent, will have to join a new Ombudsman service which will provide compliant resolution services for tenants.

Tenant Discrimination

The Bill will make it illegal to refuse a tenancy purely because a tenant has children or receives benefits. Indirect practices designed to prevent these enquiries on marketing will be illegal.

Strengthen Council Enforcement

Councils will be provided with new powers which allow enforcements of the new reforms. There will be civil penalties for minor non-compliance of up to £7,000 and serious or persistent non-compliance of up to £40,000.

Our sector is key in providing accommodation for those who need it. Demand still outweighs supply, so the market remains strong. Our experienced and knowledgeable Lettings Team at Burns Hamilton can help you navigate these changes in legislation.