Renters' Rights Bill - what you need to know

The Renters’ Rights Bill, once enacted, will represent a significant change in the way the private rental market operates in England and will also impact the rental market in Scotland and Wales. Landlords will be subject to greater regulation and constraints in the way that they operate private rented assets and can face tough sanctions and criminal liability for non-compliance.

The Bill is a re-imagining of the original Renters' (Reform) Bill that previously made its way through Parliament under the Conservatives, before being sidelined as a result of the last general election. The current Bill is now about to go through the final stage of consideration in the House of Lords and may well come into force before the end of this year.

As the Bill continues on its journey through Parliament, we take a look at the main changes that it seeks to introduce. For those who would like further information, you can also download our expanded briefing, in which we look to answer questions about some of the more significant proposals contained in the Bill.

 

What are the main changes being brought in?

1. The primary change being introduced by the Bill is the abolition of fixed term assured shorthold tenancies (ASTs). Once the Bill turns into law and comes into force, all new and existing tenancies will be treated as periodic tenancies with no end date, even if they purport to grant a fixed term (unless that fixed term exceeds seven years).

2. The Bill also abolishes section 21 "no-fault" evictions. Landlords will no longer be able to terminate a tenancy on two months' notice. Tenants, on the other hand, will be able to terminate the tenancy at any point on giving two months' notice (as opposed to four weeks, under the current regime).

3. There are newly expanded and amended possession grounds being introduced through amendments to section 8 and Schedule 2 of the Housing Act 1988. Landlords will only be able to rely on certain grounds if they gave the tenant prior written notice before the tenancy was granted.

4. Demands for rent in advance of the start of a tenancy will be unlawful. Landlords will only be entitled to request up to one month's advance initial rent at the start of the tenancy.

5. Landlords and agents will be prohibited from encouraging rental bidding wars or accepting offers of rent higher than advertised for a letting.

6. Landlords will also face restrictions on increasing rent during the tenancy. Rental increases will be restricted to once a year and tenants will be entitled to challenge rent increases that they consider to be excessive in the First-Tier Tribunal.

7. A new, mandatory centralised landlord database and mandatory landlord redress scheme will be set up. The database is intended to give tenants greater access to relevant information about landlords and rental properties and help Local Housing Authorities to target enforcement activity. It is hoped that the landlord redress scheme will provide a quick and cost-effective way of resolving disputes.

8. A detailed framework of financial penalties and criminal sanctions will be introduced, with Local Housing Authorities being placed under a duty to enforce the new legislation in their authority areas. Enhanced powers of investigation are being given to authorities to assist them in their new enforcement role.

9. Tenants will also be able to apply to the First-Tier Tribunal for rent repayment orders in connection with certain offences. The ambit of rent repayment orders will also be extended to superior landlords and officers of companies.

10. The Secretary of State will have the power to extend the Decent Homes Standard (which currently sets the minimum quality standard for homes in the social rented sector) and Awaab's Law (requiring social landlords to address hazards such as damp and mould within certain timeframes) to the private rented sector.

11. Measures will be introduced to prevent discrimination against renters with children or those who receive benefits.

12. Landlords will also have to act reasonably in considering requests to have pets in rented accommodation.

 

Do you have questions about the changes?

In our expanded briefing note, we look to answer some frequently asked questions about some of the proposals contained in the Bill relating to:-

• The application of rent restrictions
• The impact on recovering possession and transitional arrangements for existing tenancies
• The relevance of the new regime to student accommodation
• The new sanctions regime
• Application in Scotland and Wales

Please click on the link below to download our briefing. If you would like more information on these or any other topics, please get in touch with Kate Poole (whose details are at the bottom of this page).