Renters Rights Bill – What It Means For Tenants

The Renters’ Rights Bill 2024 proposes to enhance tenant rights, promoting a more structured and transparent legal environment for their interaction with landlords in the case of a dispute. Given it is highly likely to be passed into law in summer 2025 it is vital for tenants to familiarise themselves with the significant changes that are likely to take place, as well as to fully understand how best to navigate a new legal landscape that aims to afford them greater security and stability.

Having passed its second reading in the House of Commons in October 2024, and almost certainly due to become law by summer 2025, the Renters’ Rights Bill as introduced by the Labour Government on 11 September 2024, is intended to bring about substantial changes for the UK’s property rental market. These changes are likely to be felt far and wide and from a tenant’s perspective will look to provide them with improved living conditions by promoting more security, provide better living conditions, strengthening local authority enforcement, empower them with greater rights to challenge unfair landlord practices, and also increase the level of fines for non-compliant landlords.

At a glance: What you need to know as a tenant

Some of the new protections for tenants under the Bill are:

• The abolition of s21 to help provide you with improved security and stability in your home.
• The rent increase restrictions will promote greater transparency and predictability around your housing costs, so helping you to manage them more effectively.
• The heightened property standards aim to ensure that you can live in a safer and healthier home environment.
• You can keep pets at home without fear of eviction.
• A new ombudsman will be created to handle any complaints you may have, promoting a speedier and more impartial means to resolve points of disagreement with your landlord.
• You will have stronger protections against being evicted in retaliation for complaining about allegedly poor conditions or unfair practices.

What new rights will tenants get in the Renters’ Rights Bill?

Digging a bit deeper into some of the most notable changes under the Bill, tenants will need to familiarise themselves with the following:

Section 21 – The Abolition of “No-Fault” Evictions

If the Bill is passed into law, it will mark the end of Section 21, a development that would have immediate repercussions for landlords and aid tenants. Section 21 has allowed landlords to evict tenants without providing a reason. The new eviction procedures and the grounds for repossession that are being proposed will mean that landlords will only be able to evict tenants in specific circumstances, such as for non-payment of rent, or breaches of the tenancy agreement or selling of the property. These grounds to evict a tenant for arrears are being widened so that a tenant will have to have at least three months’ rent arrears- not two-both at the time the notice is served by the landlord and also at the time of the possession hearing. Additionally, the notice period for the rent arrears will increase from two weeks to four weeks.

The abolition of these “No-Fault” evictions would encourage landlords to take steps that will ultimately help tenants, such as proper record-keeping. Another example would be where better documenting rental payments and tenant conduct would ultimately aid both sides if disagreements arise.

Improved Grounds for Possession

The Bill looks to provide more clarity around the legal mechanisms and routes on how to regain possession of properties for landlords, a step that in turn promotes greater fairness around the process for tenants. For example, landlords can evict tenants if they need the property for themselves or their family, or plan to sell it. The protection for tenants here is that these new grounds are conditional on the fact that landlords will not be able to rely on these grounds within the first 12 months of the tenancy and will also have to provide at least four months’ notice when serving a Section 8 notice if doing so. Additionally, landlords will not be able to relet or market the property within 12 months of serving a Section 8 notice on one of these grounds.

Reform of Tenancy Structures

The Bill proposes the introduction of month to month or periodic tenancies, with the tenant having the right to occupy the property for 12 months; slowly resulting in the phasing out of fixed-term tenancies entirely. This development will allow tenants to leave their homes with just two months’ notice, while landlords will be able to end the tenancy on clear legal grounds. Landlords will need to get used to this protection for tenants fairly quickly as it will come into immediate effect when the legislation passes into law. The provision means tenants will have more flexibility on the one hand, while reducing the guarantee of long-term rental incomes for landlords on the other.

Improvements to Property Standards

The bill is also looking to introduce the Decent Homes Standard to the private rental sector, whereas previously it only applied to social housing. This development will mean that landlords will be responsible for ensuring that their properties meet the Decent Homes Standard, a requirement that would arguably mean that landlords need to do more to invest in property maintenance and improvements, something that is particularly relevant to older properties in their portfolio. This provision would also have teeth as failure by the landlord to meet these standards can result in penalties and even potential intervention by local authorities.

For instance, if a privately rented property fails to meet the requirements under the Decent Home Standard, the local authority will be able to take enforcement action, such as the issue of civil penalties of up to £7,000.

Another important extension of this duty comes about through the integration of Awaab’s Law into the private rental sector. Awaab’s Law was introduced in July 2023 as part of the Social Housing (Regulation) Act and provides social housing landlords with guidance on the health risks of damp and mould for their properties. This standard will now also apply to private rentals so landlords must fix serious hazards in their properties, such as dampness or mould, within a set timeframe, at the risk of penalties for failure to do so in some circumstances.

Establishment of a Landlord Ombudsman

A new, independent Landlord Ombudsman would be created to further regulate the private rental market. This introduction by the Bill is designed to deal with disputes between tenants and landlords, with the overall objective that such issues can be resolved quickly and fairly without escalation to court proceedings which can be lengthy and costly. Landlords will need to prioritise communication with tenants and be proactive in resolving issues before escalation, this is because the Ombudsman will offer a new channel for tenants to raise disputes.

Rental Price Control Measures

Greater help for tenants arises through this development as landlords will need to be mindful of rent increases as the Bill will introduce measures aimed at curtailing excessive rent hikes. Any increases to rents for tenants will need to be proportionate, as there will be a clear legal pathway for tenants to challenge landlords if they feel the rent increases are too high. The Bill proposes that landlords can only increase the rent once a year, which must match up with market rates by serving a ‘Section 13’ notice, setting out the new rent and giving at least two months’ notice of it taking effect. In addition, there will be a prohibition on landlords asking for, or accepting offers, above the advertised rent price, a provision that is being set up to in effect stop rental bidding wars.

Non-discrimination against tenant’s pets, families and those receiving benefits

In an effort to promote fairness in the market the Bill looks to prevent landlords from discriminating against tenants who have children or receive benefits. The Bill will ensure that terms in mortgages and superior leases, which restrict the letting to private tenants who do not have children or do not receive benefits, have no effect. As such, if tenants do have children or are in receipt of benefits, the lender or landlord cannot claim a breach of contract even if the contract expressly prohibits this. In addition, tenants will have the right to request to keep pets in their homes, and landlords will need a good reason to refuse any such request.

The Private Rented Sector Database

What was previously called the ‘Property Portal’ will now be renamed as the ‘Private Rented Sector Database’. All landlords of assured and regulated tenancies will be legally required to register themselves and their properties on the database otherwise face financial penalties and/or criminal prosecution.

Introduction of new energy efficiency standards

The Bill will also introduce a higher standard for energy efficiency for properties in the private rented sector. At the moment, rental properties must have a minimum Energy Performance Certificate (EPC) rating of E. The previous government previously announced plans to change the minimum EPC requirements to a C rating by 2028, later abandoning the plans entirely in 2023. The Labour government is reinstating this target while providing landlords with additional time for preparation. Landlords will now have until 2030 to comply with the upgraded standard.

A stricter energy efficiency standard within the private rental sector is being brought about to hopefully entice landlords to reduce their properties’ environmental impact to align with the UK’s commitment to achieving net zero carbon emissions by 2050. A natural by-product of this, and associated benefit to tenants, is that this adherence will help to create warmer and more comfortable homes that cost less to heat.

Change is coming for tenants this summer

As summer is fast approaching and given the fact that the Bill is a clear priority for the new Labour government, we can expect to see it become law in the near future. As these changes are imminent and will reshape the landscape of the rental market, it is of the upmost importance that tenants fully understand the proposed regulations and protections that will concern them, and which will arguably enhance their living experience.

Why choose Hodge Jones & Allen Solicitors?

The highly experienced Housing Lawyers at Hodge Jones & Allen can offer expert support and advice to any tenant seeking to prepare for the introduction of this legislation and stay ahead of matters. Our solicitors are on hand to help tenants who are concerned about how the proposed changes or seek to understand the details and exactly how these developments will impact their day to day living arrangements.

We are recognised as one of the highest-ranking law firms for social housing and tenant law in the UK. In fact, we are one of only four firms in the UK to be listed as a Tier 1 firm for this area of law in the Legal 500 guide. We are also recommended as a leading team in housing law by Chambers UK.

Our expert Solicitors are passionately committed to defending the rights of those in need of housing. We will fight rigorously to get the best possible result we can achieve. If you need legal advice or support, contact us today at 0330 822 3451 to discuss your rights and how we can assist you.