Renters’ Rights Bill – A door unlocked for tenants?

The highly anticipated ‘Renters’ Rights Bill’ has recently had its first reading in the House of Commons. The Bill, described by the new Labour Government will aim to tackle a private rental sector that is said by MHCLG to be the ‘most insecure of all housing tenures’ (Ministry of Housing, Communities & Local Government, Guide to the Renters’ Rights Bill Published 11 September 2024).

The balancing of landlord’s rights to regain possession of their rental properties with tenants’ rights to security of tenure has always proved difficult, but does this new Bill shift the position squarely in favour of tenants?

To answer this, it is important to establish the changes that the Bill proposes and how this will affect the private rental sector.

What changes does the Bill propose?

The Bill sets out key changes to the current housing landscape. Most notably the banning of Assured Shorthold Tenancies and the introduction of Assured Tenancies. This change will do away with fixed term tenancies and make all tenancies periodic from the outset. What this means in practical terms is that landlords will no longer be able to rely on fixed term tenancies to provide themselves security for the receipt of rent over a set period of time. Tenants, under the proposed changes, will be able to vacate a property by giving 2 months’ notice to a landlord increasing flexibility for tenants.

No More 'No Fault'

For landlords, the major change is in relation to section 21 or so-called ‘no fault’ evictions. Landlords under the Bill will no longer be able to evict tenants by giving 2 months’ notice. Greater emphasis will therefore be placed on s.8 grounds for possession, for example relying on tenants being in rent arrears.

Grounds for possession have not escaped reform however, and are set to be amended under the Bill. It will be interesting to see how an already strained court system can cope with the inevitable increase in hearings that will result from the accelerated procedure getting the chop.

There is some relief for landlords as a new ground for possession is proposed which will rely on landlords wishing to sell their rental properties. No doubt an attempt by the Government to balance the scales, however further guidance will be required to ensure that this isn’t a ground that can be abused by landlord.

Tenant Protections

A shift to attempt to get a grip on a spiraling private rental sector is a proposed ban on rental bidding. The ban would prohibit landlords from asking for and accepting offers above a fixed asking price when advertising a property.

Other key changes include the extension of Awaab’s law to the private renting sector. This will require landlords to adhere to strict timescales for investigating and addressing maintenance issues such as mould.

A positive change for pet lovers includes rights for tenants to occupy with a pet and the landlord being unable to unreasonably refuse any such request providing that appropriate insurance cover is put in place by the tenant.

The Long-term impact

An additional concern for landlords is likely to be the status of notices served prior to the coming into force of the Bill. Any section 21 notices served validly prior to the commencement date of the new act remain valid and any commenced proceedings will continue until these are time-barred or concluded.

Landlords should also be aware that if proceedings under the current section 21 procedure have not yet been commenced by the time the Bill is enacted, they will not be able to commence proceedings after the end of either 6 months from the date notice was given or 3 months from the commencement date of the Bill, whichever is less. Therefore, there is an element of a grace period being introduced. The exact commencement date is not yet known.

Landlords will be wise to start getting their houses in order now (pun intended), in readiness. If you would like to speak to us about your current rental properties, please do not hesitate to get in contact via info@leathesprior.co.uk or call 01603 610911.