Renters' Rights Bill Introduced to Parliament
13/09/2024The Renters (Reform) Bill was introduced by the Conservative government in October 2023, and its progress through Parliament was stalled when the General Election was called for 4 July 2024. A version of the Bill has been revivified by the current Labour government under a new guise. The new Renters’ Rights Bill was presented to Parliament on 11 September 2024. Many of the key policies from the Renters (Reform) Bill are retained.
A central tenet of the Bill is the abolition of so-called ‘no fault evictions’ pursued under section 21 of the Housing Act 1988, as amended. This will apply to new and existing tenancies. Unlike the 2023 Bill, the abolition will take effect as soon as the current Bill comes into force. A new ground for possession will be introduced for cases in which the landlord needs to sell, and additional provision will be made for cases in which the landlord or their family needs to move in.
Other significant changes to the grounds for possession are included in the Bill. Longer notice periods for all existing grounds are proposed. Ground 8, for example, will be amended to require 4 weeks' notice, as well as three months’ or thirteen weeks’ rent arrears for a mandatory possession order to be made. A new ground will be introduced for Homes in Multiple Occupation let entirely to students.
The government also proposes to preclude landlords from renting out their properties for more than the price advertised, aiming to prevent bidding wars, which are said by renters’ rights groups to drive up rents. Tenants will more easily be able to challenge proposed rent increases.
In the area of disrepair, ‘Awaab’s law’, which requires the quicker investigation and rectification of disrepair and mould, will be expanded to apply to private renters, in addition to those in social housing. A ‘Decent Homes Standard’ will be introduced to housing in the private sector, with landlords liable for fines of up to £7,000 for failing to meet standards.
The response to the proposals has been mixed, as perhaps expected. A short-term uplift in the service of section 21 notices and reliance on section 21 as a mechanism for gaining possession is anticipated, while this still remains possible. It has been suggested that the change will see some landlords seek to evict and sell, potentially causing upheaval for tenants and an over-burdening of the Courts. This latter concern had been mitigated under the previous government's amended proposals, which provided for the abolition to come into force only after court reform. There is no such corollary in the current Bill.
In its 'Guide to the Renters' Rights Bill', the government claims:
"As now, landlords will only need to go through the courts in a small minority of cases where a tenant doesn’t leave at the end of a notice period. Ultimately, we expect our rental reforms to reduce demand on the courts because only cases where there is a clear, well-evidenced ground for possession will be able to proceed."
There is no elaboration on the anticipated impact on the Court system of the proposed changes. The Bill's progression through Parliament remains to be seen, with the second reading not due until after the imminent party conference season.