How the Renters’ Rights Bill could affect tenants

With its Renters’ Rights Bill that’s recently been introduced to Parliament, Labour is going further than the Conservatives did in their Renters (Reform) Bill when it comes to strengthening and improving tenants’ rights in England.

So, what are the key proposals in the Bill that will affect tenants, and how will things change for you if you’re renting privately?

Section 21 will be scrapped

This is the change that has seen the biggest media coverage. It means that in the future, landlords will no longer be able to evict you without having to give a reason at just two months’ notice. Instead, every eviction will require a Section 8 stating one (or more) of the revised grounds for possession.

While this may make some tenants feel more secure in their rented home, the reality is that the vast majority of evictions do have a valid reason behind them – it is not as though landlords are evicting perfectly decent tenants on a whim!

In the most recent English Housing Survey, only 9% of tenants surveyed who had moved within the previous three years, said they were evicted or asked to leave. And in more than two-thirds of those cases, it was because the landlord simply wanted to sell or use the property themselves, which will continue to be legal grounds for possession.

More information on the proposed amended Section 8 grounds is available on the Government website.

The requirements and minimum notice for an eviction on the grounds of rent arrears are increasing

The current draft of the Bill proposes that tenants will have to be at least three months in arrears before a Section 8 can be issued – up from the current two months – and the notice period will be doubled, from two weeks to four.

So, if you happened to be experiencing financial difficulty and were struggling to pay your rent, this would essentially enable you to stay in your home for longer and give you more time to resolve the issue.

This is something that is likely to be challenged as the Bill makes its way through Parliament, so it may change.

Tenants won’t have to commit to a minimum initial fixed term

The Assured Shorthold Tenancy as it stands will disappear and all tenancies will become periodic. That means you can no longer be required to commit to paying rent for the first 6 or 12 months of a tenancy and will be able to give two months’ notice to leave at any time – right from day one.

However, your landlord will not be able to evict you for the first 12 months unless you have breached your tenancy agreement, so you will still have some security. And for the most common valid grounds for eviction – e.g. if they want to sell or move into the property themselves – the notice period they have to give you will double, from two months to four, so you will have more time to find a new home.

Tenants will be able to make checks on landlords and hold bad ones to account

A Private Rented Sector Portal is going to be established, where all private landlords will have to register details of themselves and their properties. Any offences and penalties issued will be logged there, and you will be able to freely search this portal at any point to make sure the landlord you’re renting from is reputable and complying with the law.

There will also be a new Private Rented Sector Ombudsman that all landlords will have to join, even if they use a letting agent. This means you will have an independent third party to raise complaints with if your landlord is not acting properly or legally, and we think it’s a very good step. Currently, it’s only agents that must belong to an Ombudsman, which means tenants whose landlords let and manage themselves are more vulnerable if the let isn’t being handled properly.

Tenants will have the right to request a pet

Currently, any private landlord can put a ‘no pets’ clause in their tenancy agreement, but this will no longer be the case when the Bill passes.

However, this doesn’t mean you will definitely be able to keep a pet in your rented home. If the landlord has a valid reason – e.g. the property is not suitable for the type of pet, or there is a restriction in the headlease – they will have the right to refuse your request.

The other thing to be aware of is that if you do keep a pet, your landlord may require you to have pet insurance that covers damage, so be prepared to factor in that extra monthly cost.

Some restrictions to rent rises will be introduced

Your landlord will only be able to increase the rent once a year and it will have to align with current market rates, meaning it can’t be ‘hiked’ to an unreasonable level.

In addition, the Bill aims to stop bidding wars on available properties by banning agents and landlords from accepting rent offers at above the advertised price. The hope is that this will help keep rents more affordable - although it may be the case that asking prices simply go up and this is likely to be very hard to track and enforce.

There will be new minimum health & safety standards for rented homes

A Decent Homes Standard will be introduced, and ‘Awaab’s Law’ will be applied to the Private Rented Sector, meaning landlords will have to fix reported serious health hazards such as damp and mould within a strict timeframe.

What this is certainly positive, the reality is that professional landlords and agents already have to ensure their properties are free from hazards and safe for tenants and the good ones always will. However, it may help local councils crack down on bad landlords and protect the most vulnerable tenants, depending on their resources.

If you have any questions about the Bill, we’re always here to help. Just get in touch with your local branch and have a chat to one of the lettings team.