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Publication of The Renters鈥 Rights Bill: Major changes to the private rented sector are on their way

13 September 2024
David Harris

Renters reform was an important part of the Labour Party鈥檚 pre-election manifesto. It is no surprise therefore to see this published in the first few months of the new government鈥檚 tenure.

Amongst other things, the Bill covers the following key points:

  1. So-called 鈥榥o fault鈥 eviction will be abolished - where a tenancy can be terminated for no reason by a landlord on two months鈥 notice at the end of the contractual term.
  2. All tenancies (including those existing when the Act is passed) will become periodic ones which the tenant can terminate on two months鈥 notice.
  3. The existing mandatory and discretionary grounds for possession will be expanded and clarified. For example, after 12 months, landlords will have grounds for possession on 4 months鈥 notice if they or a close family member wish to occupy the property or if they want to sell the property.
  4. Rent increases to market value will only be allowed once a year using the statutory process (contractual rent reviews will not be permitted) and a tenant will be able to challenge a landlord鈥檚 proposed increase in the First-tier Tribunal.
  5. Landlords will have to register themselves and their properties on a new Private Rented Sector Database and will have to join a new Private Rented Sector Ombudsman service to settle disputes with tenants.
  6. The Decent Homes Standard and 鈥楢waab鈥檚 Law鈥 will for the first time apply to the private rented sector. The latter will require landlords to address dangerous hazards (for example, damp and mould) within a set time period to ensure homes are safe.
  7. Landlords will not be able to unreasonably refuse a tenant鈥檚 request to keep a pet.
  8. When letting a property landlords and agents will not be able to discriminate against prospective tenants with children or on benefits. They will also not be able to ask for or accept a rent beyond that which is advertised.

A similar (if less radical) Bill was published by the previous government in May 2023. However, its passage was delayed by concerns over reform to the court system and it was dropped when the general election was called. This time though there appears to be the political will for this Bill to pass speedily into law (a Housing Minister was quoted yesterday saying that they hope to have the new tenancy system in place 鈥渨ithin the first half or around summer next year鈥). Landlords really need to start preparing themselves now for the biggest shake-up in the private rented sector for over 35 years.

Key contact

Key contact

David Harris

Professional Development Lawyer

david.harris@brownejacobson.com

+44 (0)115 934 2019

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