Key Changes Under the Renters' Rights Bill 2024
The Renters' Rights Bill 2024, which is currently under consideration in Parliament introduces several key changes to the rights and responsibilities of both landlords and tenants. The second reading in Parliament took place on 9th October 2024. Following this, the Bill will undergo further scrutiny, and after the third reading in the House of Commons, it will move to the House of Lords for further debate.
Once passed, the Bill is expected to introduce significant reforms that will directly affect private landlords. Key provisions include:
• Abolition of 'no-fault' evictions (Section 21): The Bill proposes the removal of Section 21 of the Housing Act 1988, which allows landlords to terminate assured shorthold tenancies without providing a reason. Once the Bill is enacted, landlords will need to provide valid grounds under Section 8 (Form 3) for ending a tenancy, such as breaches of contract, the landlord wishing to sell the property, or needing it for personal use.
• New rules on rent increases: The Bill introduces more stringent rules around how and when landlords can increase rent. Rent increases will need to follow a clearer process and be subject to greater scrutiny, with tenants having the right to challenge rises they believe to be unfair. There may also be limits on the frequency of rent increases during a tenancy, ensuring more predictable costs for tenants.
• Minimum property standards and stricter enforcement: The Bill outlines more robust requirements for property maintenance and repairs. Landlords will be expected to meet higher standards for property conditions, with new obligations around repairs, energy efficiency, and the overall safety of rented homes. Additionally, Awaab’s Law will be introduced, setting a legal obligation for landlords to address hazards such as damp and mould in a timely manner.
• Permission to keep pets: One of the more notable provisions is the requirement for landlords to permit tenants to keep pets in their rental properties, subject to reasonable conditions. Landlords will only be able to refuse consent for pets if there is a legitimate reason, and tenants may be asked to take out pet insurance to cover any potential damages.
• Introduction of a National Landlord Register: The Bill will create a national landlord database to improve transparency and accountability. All landlords will need to be registered, providing authorities with better oversight to ensure compliance with legal standards. This may also lead to quicker identification and enforcement against rogue landlords.
• Establishment of a Landlord Ombudsman: To provide a fair and impartial means of resolving disputes between landlords and tenants, the Bill introduces a Landlord Ombudsman. All private landlords will be required to register with the Ombudsman service, which will handle complaints from tenants on matters such as repairs, property conditions, and other disputes. This aims to offer a more efficient alternative to court proceedings.
These reforms may impact your current letting arrangements, and it will be crucial for landlords to stay compliant with the new legislation once it is enacted.
We understand that navigating these changes can be challenging, but please be assured that we will be here to support you every step of the way. Our team is closely monitoring the progress of the Bill, and once the final provisions are confirmed, we will provide clear guidance on how the new regulations will affect your properties and what actions may be necessary to remain compliant.
If you have any questions or would like to discuss how these changes might affect your portfolio, please don’t hesitate to get in touch with us.