In a recent survey conducted for the our Property Sentiment Index, we discovered that only 37% of property seekers know much about the upcoming Renters’ Rights Bill. This piece of legislation has the potential to affect the way many people rent property and so should be understood. Here, we’ll take a look at what has been proposed in the bill, when it is likely to come into effect and how it has been received.
What will be included in the bill?
The main aim of the Renters’ Rights bill is to give more rights to renters and ensure landlords provide a good service. Therefore, the government are proposing:
1. Abolish Sections 21 evictions
Otherwise known as “no-fault” evictions, a Section 21 notice allows a landlord to start the process of eviction without needing to provide a specific reason. While landlords are still required to give 2 months’ notice, this can leave tenants in a panic and with little time to find somewhere new to move to.
By abolishing this type of eviction, the bill aims to give tenants more security and the ability to challenge poor practice and unfair rent increases without fear of eviction.
Similarly, the government are hoping to end “backdoor evictions”, a way for landlords to exploit loopholes or legal provisions to remove tenants. For example, increasing rent excessively to force tenants into arrears. The bill proposes allowing landlords to increase rents but only to market price, an independent tribunal will make a judgement on this if needed.
2. Introduction of a Private Rented Sector Landlord Ombudsman and Database
The introduction of an ombudsman for the sector provides a fair and impartial resolution for tenants’ complaints about their landlord. This should bring the sector to the same level as established practices in social housing and consumers of property agent services.
The introduction of a database will help to give landlords a tool to understand their legal obligations and demonstrate compliance. Tenants will then be able to make better informed decisions when entering into a tenancy agreement.
3. Awaab’s Law
Awaabs’s Law came into practice for social housing landlords in 2023. It ensures health hazards (e.g. damp and mould) in homes are addresses properly and within certain timeframes. Until now, this law has only been relevant for social housing, but the Renters’ Rights Bill should see it extended across the private rental sector. Should a landlord fail to address any health hazards, within the timeframe set out, tenants will be able to take legal action for breach of contract.
4. Pet-friendly properties
The new bill aims to give renters strengthened rights to request to keep a pet within the property. Currently, landlords can refuse this outright, but under this new legislation they will have to consider requests and cannot unreasonably refuse. They will however have the right to request tenants take out pet insurance to cover any potential damage caused by the pet.
5. A fairer process
The bill seeks to make the private rental application process as fair as possible. When passed, it will be illegal for landlords and agents to discriminate against prospective tenants who are in receipt of benefits or those who have children.
The government are also aiming to end the practice of rental bidding by prohibiting landlords and agents from asking for or accepting offers above the advertised rent.
6. Stronger local authorities
The legislation plans to strengthen local authority enforcement by expanding civil penalties and introducing a package of investigatory powers. They will bring in a new requirement for local authorities to report on enforcement activity. This adds a level of accountability to keep landlords, tenants and local authorities on track in maintaining standards within the private rental sector.
When is it likely to be made law?
The Renters’ Rights Bill is currently sitting in the House of Lords for its third reading. This is the last stage within the Lords before all amendments are considered and, if approved, it is given Royal Assent to become law. While we can’t be certain about when it will receive this assent, sources suggest it should be enacted before 22 July 2025.
How has it been received?
As with most political announcements, the Renters’ Rights Bill has split opinion. On this topic, those opinions are split between two groups: tenants and landlords.
Tenants
Unsurprisingly, tenants seem to be favourable towards the proposed legislation. Should it pass into law without any drastic changes, renters will enjoy more security in their living circumstances, more protection from local authorities and a dedicated ombudsman and even the ability to argue to have a pet in their chosen property. However…
Landlords
While tenants are seen to be getting more powers, many landlords believe they are about to lose theirs. From losing the power to evict unsuitable tenants to being unable to discriminate prospective renters based on pets, families and benefits, many landlords may see too many risks coming their way. On top of this, with the limit to the amount they can increase prices by, many are debating the point of renting out their property, whether the potential damage and time are worth the money .
And now we wait…
While we know what has been proposed, we wait for the King’s signature to be sure about what exactly the bill will include and then wait longer to see the effect it will have on the private rental sector. While you work out what your next property move is, take a look at OnTheMarket.com to see what’s available in your area.
