What will be in the new Renters’ Rights Bill?

22nd July 2024

In the King’s Speech, the Labour government outlined its plans for a new Renters’ Rights Bill, which will give “greater rights and protections to people renting their homes, including ending no fault evictions, and reforming grounds for possession”.

Key provisions in Labour’s new Renters’ Rights Bill

Abolition of Section 21 ‘no fault evictions’

This was a key part of Labour’s Manifesto. The notes to the King’s speech refer to “removing the threat of arbitrary evictions and increasing tenant security and stability”.

No indication is given on timing, although the fact this is in a long Bill, that doesn’t just abolish Section 21, means that it will take a number of months to hit the statute book, at the very least, and will then need to be implemented.

As the Second Reading Bill has not been scheduled to take place before the Summer Recess starts on 30 July, it means that the Renters’ Rights Bill is unlikely to receive Royal Assent until early 2025. This means that the abolition of Section 21 will be far from “immediate”, as claimed by Labour in their manifesto.

New Section 8 grounds for possession

The briefing notes state that “clear and expanded possession grounds will be introduced so landlords can reclaim their properties when they need to”.

The notes don’t elaborate, but it is likely that some of the expanded possession grounds under Section 8 that were in the Renters Reform Bill will be included in the Renters Rights Bill, albeit with some changes.

For instance, when the Renters Reform Bill was going through the House of Commons, Labour agreed to the new Ground 1A to allow landlords to recover possession if selling up, but wanted to restrict it so that landlords could not do it in the first year of a tenancy. (The Renters Reform Bill said the restricted period would be the first 3 months). See amendment 255.

Landlords would not be able to relet the property after relying on Ground 1 (landlord/family moving in) or Ground 1A (landlord selling up) for 12 months, compared to the Conservative proposal for 3 months to 12 months for the “restricted period” – amendment 35.

Ability for tenants to challenge rent increases

The Bill will “empower tenants to challenge rent increases designed to force them out by the backdoor”.

This statement is very vague. The Renters Reform Bill removed the ability of landlords to have rent review clauses in tenancy agreements, and require them to use the statutory process in Section 13. There is already a mechanism in place for tenants to challenge rent increases made under the Section 13 process, so it is not clear whether this will add anything over and above the Renters Reform Bill,

Ending of rental bidding wars

This had a lot of coverage in the general election, and the briefing notes say they will introduce “new laws to end the practice of rental bidding wars by landlords and letting agents”.

It is likely that such a provision will be similar to the amendment to the Renters Reform Bill that was proposed by Matthew Pennycook, now the Housing Minister, Landlords (or those acting on their behalf).

The Labour amendment stated that landlords and letting agents would be prohibited from “inviting or encouraging bids that exceed the amount stated as part of the advertisement or offer of the premises” – amendment NC7. This wording would not stop a tenant bidding over the asking price, so long as the letting agent or landlord didn’t ask them to do it, explicitly or implicitly.

Right to request a pet

The notes state: “Tenants will have the right to request a pet, which landlords must consider and cannot unreasonably refuse. Landlords will be able to request insurance to cover potential damage from pets if needed”.

This is nothing new and sounds the same or similar to the provisions regarding pets and pet insurance in the Renters Reform Bill.

Applying a Decent Homes Standard to the PRS

A Decent Homes Standard will be applied the private rented sector to “ensure homes are safe, secure and hazard free – tackling the blight of poor quality homes”.

Again, this mirrors provisions in the Renters Reform Bill.

Applying “Awaab’s Law” to the PRS

The briefing notes state they will apply Awaab’s Law to the private rented sector, “setting clear legal expectations about the timeframes within which landlords in the private rented sector must make homes safe where they contain serious hazards”.

This was not in the Renters Reform Bill.

Awaab’s Law is the name given to Section 42 of the Social Housing (Regulation) Act 2023, which introduces an implied term into social housing tenancy agreements to the effect that social landlords are required to fix reported health hazards within specified timeframes.

Creation of digital private rented sector database

The notes refer to “creating a digital private rented sector database to bring together key information for landlords, tenants, and councils. Tenants will be able to access information to inform choices when entering new tenancies. Landlords will be able to quickly understand their obligations and demonstrate compliance, providing certainty for tenants and landlords alike. Councils will be able to use the database to target enforcement where it is needed most”.

This sounds very similar to, if not the same as, the PRS Database in the Renters Reform Bill.

Private Rented Sector Ombudsman

The briefing notes says the Bill will support “cheaper resolution when there are disputes – preventing them escalating to costly court proceedings – with a new ombudsman service for the private rented sector that will provide fair, impartial and binding resolution, to both landlords and tenants and reducing the need to go to court.

This sounds very similar to the PRS Ombudsman in the Renters Reform Bill.

Anti-discrimination

As with the Renters Reform Bill, the Renters Rights Bill will make it “illegal for landlords to discriminate against tenants in receipt of benefits or with children when choosing to let their property – so no family is discriminated against and denied a home when they need it”.

New enforcement and investigatory powers

The notes state that the Bill will “strengthen local councils’ enforcement powers. New investigatory powers will make it easier for councils to identify and fine unscrupulous landlords and drive bad actors out of the sector.”

It’s not clear how this differs from the many new powers for councils in the Renters Reform Bill.