Unchartered territory: Navigating the Renters’ Rights Bill - why landlords need to act now

Beth Donaldson, a solicitor in our Commercial Litigation & Dispute Resolution team, tells us how the Government’s Renters’ Rights Bill promises to shake up the rental market, introducing new rules that could significantly impact private landlords.

Change brings challenges, and the proposed reforms to renters’ rights before Parliament is an area which landlords need to pay close attention to. An overarching theme in the reforms compared to the present legal position is that renters are going to be afforded greater long-term stability underpinned by a more affordable rental market but with little protection in the offering for landlords.

As with all legislation progressing through Parliament the actual law compared to the Bill’s wording may be tweaked, however, the current majority that the Government has in the House of Commons is unlikely to diminish the intention behind the Bill and therefore it can be assumed that the Bill will lead to the implementation of ten key reforms:

1. Abolition of Section 21 ‘No Fault’ Evictions which means landlords will be unable to evict tenants without providing a valid reason.

2. New grounds for eviction under Section 8, which were the old ‘fault’ grounds, and will result in enhanced grounds to evict tenants including because the Landlord wants to live in the property.

3. Increased notice periods which flows across all grounds for eviction. Notice periods will increase for example, under section 8 the tenant will be required to be in three months arrears (increasing from two months) at the time the notice is served and at the time of the possession hearing and the notice period will increase from two weeks to four weeks.

4. Outlawing rental bidding, which will mean landlords and agents will be prohibited from encouraging or accepting offers above the advertised rent.

5. Abolition of fixed term tenancies which will be replaced with periodic tenancies meaning tenants can remain in the property indefinitely unless a section 8 ground for possession is made out.

6. Improved property standards and enforcement penalties. There will be a strong push for higher housing standards with increased penalties for landlords who fail to meet their obligations of up to £7,000 for an initial breach and £40,000 for repeat breaches and/or criminal prosecution.

7. Introduction of a mandatory Ombudsman Service and National Private Landlord Database. Landlords must pay the requisite fees to become members of both which are designed to allow disputes in relation to repairs to be resolved and enhance transparency allowing the local authority to hold landlords to accountability.

8. Extension of Awaab’s Law to private landlords. This extension will reinforce the requirement for landlord to respond to health hazards such as mold in a timely manner with penalties for failure to do so.

9. Prohibition of discrimination on the basis of the Tenant having children or receiving benefits. Landlords and agents will no longer be allowed to refuse tenants who receive housing benefits or universal credit or who have young children.

10. Strengthened rights for tenants to request a pet in the property. Tenants will be able to request permission to have a pet in the property which cannot be unreasonably refused by the landlord. Landlords can however insist that the tenant takes out pet insurance to cover any damage to the property.

With changes on the horizon and the Bill having returned to Parliament for its second reading on 9th October 2024, staying ahead of the curve is essential to protect your investments and avoid potential legal pitfalls. If you are a landlord and would like any advice as to how the proposed changes might affect you or in relation to any current landlord and tenant dispute, please contact us.

For more information about the Renters’ Reform Bill or housing law generally, please contact Beth Donaldson on beth.donaldson@hay-kilner.co.uk.