What is the Renters Rights Bill?

What is the Renters’ Rights Bill? Context, history, and parliamentary progression

On 11 September 2024, the Government’s draft of the Renters’ Rights Bill saw its first reading in Parliament. 

Labour’s version of the Bill follows the previous Conservative government’s equivalent legislation, the Renters’ (Reform) Bill, which ultimately did not pass before the general election occurred. While the Renters’ Rights Bill contains some of the same suggested reforms, Labour has laid out further changes intended to overhaul the private rental sector and strengthen tenant protections. 

The second reading of the Renters’ Rights Bill will take place on 9 October 2024 after Parliament returns from recess. The Bill must then progress through the House of Commons and the House of Lords before becoming law. 

Although it is still in its early stages, the Renters’ Rights Bill is expected to progress through Parliament quickly, largely due to it being a significant Labour manifesto commitment. As things stand, Housing Minister, Matthew Pennycook, has stated intentions to have a ‘new tenancy system in place within the first half or around summer next year’.

What will the Renters’ Rights Bill change?

The Renters’ Rights Bill outlines many significant new measures for the private rented sector. We break down the key suggested changes.  

Abolish section 21 evictions 

Just as the Conservative’s Renters’ (Reform) Bill intended, The Renters’ Rights Bill will abolish section 21 “no-fault” evictions and make all assured tenancies periodic with immediate effect. This will apply to both new and existing tenancies, providing tenants with additional security against unfair evictions and rent increases. 

Clearer grounds for possession 

The Government has conveyed the Renters’ Rights Bill as providing clear grounds for possession that protect tenants from arbitrary eviction while ensuring that landlords can regain possession of their properties within a reasonable time frame. 

At the beginning of a tenancy, tenants will benefit from a twelve-month period of protection, during which landlords cannot evict them in order to sell the property or move in themselves. After this period, landlords will need to provide four months’ notice to evict tenants under these grounds. The Government believes this will give tenants enough time to find a new place to live, minimising the risk of homelessness. Tenants will be able to serve two months’ notice to end their tenancy. 

In addition, the Bill intends to increase the mandatory threshold for eviction from two to three months’ rent arrears and increase the notice period from two weeks to four. This means that landlords could face four months’ rent arrears before being able to enforce eviction. This measure is supposed to allow tenants a larger grace period to repay rent arrears without losing their homes.

Strengthened protections for tenants 

The Renters’ Rights Bill will introduce stronger protections against backdoor evictions by introducing new safeguarding measures that shield tenants against punitive or excessive rent increases.

If a landlord wants to implement a rent increase, they will need to communicate it via a section 13 notice which offers a two-month notice period. Tenants will be able to challenge proposed rent increases in the First Tier Tribunal if they feel the new rent is above market rate.

End bidding wars 

Landlords and letting agents will be required to publish an asking rate for their property and it will be illegal to accept any offers above this. This will prevent bidding wars within the private rented sector which currently price many prospective tenants out of properties they could afford at the asking rate.

Right to request pets 

Landlords will be obliged to consider any tenants' requests to keep pets in their rental property and will not be able to reasonably refuse. However, they can ask tenants to take out pet insurance to cover any potential property damage. 

Crackdown on rental discrimination

The Renters’ Rights Bill will make it illegal for landlords to discriminate against tenants with children or those who receive benefits. This will help ensure that everyone has a fair chance when looking for somewhere to live.

Apply Decent Homes Standard to PRS

The Decent Homes Standard, which has set the minimum standards that social homes are required to meet since the early 2000s, will now be extended to the private rented sector (PRS). Awaab’s Law will also be expanded to the PRS, which lays out clear timelines for the resolution of hazards such as damp and mould within properties. If landlords fail to take action to resolve serious hazards they could be fined up to £7,000 and face prosecution for non-compliance. 

Private Rented Sector Landlord Ombudsman 

A new Private Rented Sector Landlord Ombudsman will be introduced to aid with tenant-landlord dispute resolution. The Ombudsman will provide efficient, impartial resolution, reducing the need to go to court over disputes. This measure will bring tenant-landlord complaint resolution in the private sector in line with existing practices within social housing.

Create Private Rented Sector Database 

A Private Rented Sector database will be created to help tenants make informed decisions when entering into a tenancy agreement and help landlords understand their legal obligations. Landlords will also be required to use the database to demonstrate their compliance. Landlords will need to be registered on the database in order to use certain possession grounds. 

The database will also help local councils to direct their enforcement activity where it is most needed. The Renters’ Rights Bill will also strengthen enforcement by requiring local authorities to report on enforcement activity, expanding civil penalties, and introducing a new package of investigatory powers. 

Strengthen rent repayment orders 

Rent repayment orders are financial penalties that allow tenants or local authorities to claim back rent from landlords who have broken housing-related laws. The Renters’ Rights Bill will strengthen these repayment orders by extending them to superior landlords, doubling the maximum penalties, and ensuring repeat offenders always have to pay the maximum amount. 

What does the Renters’ Rights Bill mean for landlords?

The Renters’ Rights Bill is likely to bring significant change to the private rented sector. As the outlined measures are currently set to affect existing tenancies as well as future ones, it’s important to get prepared now, before the Bill passes.

Download our checklist on how to prepare for the Renters’ Rights Bill to ensure you're ready for the new legislation in good time.