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Renters’ Rights Bill 2024 – What Landlords and Tenants Need to Know

Wed 09 Oct 2024

Renters’ Rights Bill 2024 – What Landlords and Tenants Need to Know

 

Big changes are on the horizon for the rental market, with the Renters’ Rights Bill, introduced for its first reading by the Labour Government on 11th September 2024. It marks the beginning of a significant shift in how tenancies will be managed across the UK. 

 

The bill is currently making its journey through Parliament. The proposed reforms within this bill are designed to offer greater protections for tenants, but they also bring significant changes for landlords. Here are some of the key changes we believe are coming and what you need to know and how to prepare.

 

It is anticipated that any changes will become law some time in the middle of next year 2025 .

 

The end of Section 21 “No-Fault” Evictions

One of the most talked-about changes is the end of Section 21, commonly known as “no-fault” evictions. This means landlords will no longer be able to ask tenants to leave without a reason. Instead, you’ll need a valid, legally defined reason for ending a tenancy, such as rent arrears or wanting to sell the property.

Understandably, many landlords are concerned that this will make it harder for them to regain possession of their properties.

 

Q Can I still serve a Section 21 notice now to end my current tenancy?

  • As the proposed Bill is not yet a law you are able to proceed to serve the Section 21 notice in line with current legislation and in line with clauses in your tenancy agreement. It is not clear at this stage whether the legislation will be retrospective and therefore it is possible it might not apply to existing tenancies.

 

Rent Increases

Under the new rules, landlords can only increase the rent once a year, which must align with market rates. The idea is to provide tenants with more stability and prevent unfair rent hikes.  The bill will also stop rental bidding wars. From now on, landlords and agents will need to publish an asking rent, and they won’t be able to accept offers above this price. This could be a welcome change for tenants, especially in high-demand areas where bidding wars have pushed higher rents.

 

Tenant Protections: Pets, Benefits, and Families

The Renters’ Rights Bill also aims to make the market fairer by stopping landlords from discriminating against tenants who have children or receive benefits.

Additionally, tenants will have the right to request to keep pets in their homes, and landlords will need a good reason if they refuse. You can still ask tenants to take out pet insurance to cover potential damage, but blanket “no pets” policies will be a thing of the past.

 

Awaab’s Law and the Decent Homes Standard

Named after a tragic case involving a toddler who died due to mould exposure, Awaab’s Law will now apply to private rentals.

Landlords must fix serious health hazards like dampness or mould within a set timeframe or face penalties. The Decent Homes Standard will also apply to private rentals, ensuring properties are safe and habitable.

 

Other changes include:

  • Creating a digital private rented sector database with key information for landlords, tenants, and councils.
  • A new ombudsman service for private rented sector landlords.
  • Strengthening local councils’ enforcement powers through expanded Rent Repayment Orders and increases to fines.

 

Here to Help

Change is challenging but at Samuel & Son, we’re here to help landlords navigate and prepare for these changes from ensuring their properties are compliant to offering guidance on managing tenancies under the new rules. Contact our Lettings Manager, Mary Midgley on 01435 810077.