The Labour government has introduced the Renters’ Rights Bill (external link), aiming to bolster tenant protections while increasing responsibilities for landlords. The Bill incorporates elements from previous government proposals but adds new measures. In this blog post, we explore the most significant changes landlords should be aware of.
Shift to Periodic Tenancies
The Bill proposes replacing fixed-term tenancies with periodic tenancies, allowing tenants more flexibility. Tenants will be able to end their tenancy by giving two months’ notice, making it easier for them to move without being tied into long-term contracts.
Abolition of Section 21 Notices
The proposed changes to seek to eliminate Section 21 “no fault” eviction notices, which currently allow landlords to terminate a tenancy without providing a reason. Instead, the Bill strengthens Section 8 eviction grounds, which would require landlords to justify evictions based on specific circumstances like rent arrears or tenant misconduct.
Extension of Awaab’s Law and the Decent Homes Standard
The Decent Homes Standard and Awaab’s Law will be extended to the Private Rented Sector. This means landlords will need to ensure properties meet higher quality and safety standards.
Landlord Ombudsman and Database
The Bill proposes to create a Private Rented Sector Landlord Ombudsman and Landlord Database aimed at assisting in landlord-tenant complaint resolution and helping local councils with enforcement against rogue landlords.
End to Bidding Wars
There will be an end on bidding wars, where prospective tenants bid over the asking rent to secure a property. This change is intended to make the rental process fairer for tenants.
Restrictions on Rent Increases
Landlords will only be permitted to request rent increases once a year, using a formal notice. Tenants will have the right to challenge these increases by appealing to the Tribunal, which could set a rent lower than the proposed amount.
Pets in Rental Properties
Tenants will have the right to request permission to keep a pet, and landlords cannot unreasonably refuse. Landlords must respond within 42 days, though this period can be extended if the superior landlord’s consent is needed. Importantly, landlords can require tenants to obtain pet insurance to cover any potential damage, and the Tenant Fees Act 2019 will be amended to allow for this charge.
Discrimination Protections
The Bill includes provisions to prohibit landlords from discriminating against tenants who receive benefits or have children. Non-compliance could result in fines for landlords found in breach of these rules.
Implication for Welsh Landlords
Whilst most changes apply to England, some provisions extend to Wales. Welsh landlords will be prohibited from discriminating against tenants on benefits or those with families. Additionally, the Welsh Government will have the power to expand the list of protected categories and set its own timeline for implementing these changes.
Implementation Timeline
Although the Bill still has some legislative hurdles to clear, the government has indicated it intends to fast-track the process, with implementation expected by summer 2025.
To stay compliant, landlords should keep an eye on updates and make sure they’re familiar with our extensive range of Property documents.