The Renters Reform Bill has reemerged in the House of Commons, five years and four prime ministers after its initial promise. This time, the legislation is being presented by Labour, with the new government pledging to enhance and complete the proposals that the Tories had initially introduced, diluted, and then ultimately abandoned before the general election. Now known as the Renters Rights Bill, it aims to significantly balance the power between landlords and tenants, according to housing minister Matthew Pennycook. Here are the key aspects of the legislation:
Ban on No-Fault Evictions
A central feature of the legislation is the comprehensive ban on no-fault evictions under Section 21 of the 1988 Housing Act. This provision allowed landlords to evict tenants with a two-month notice without providing any justification. Housing advocates argue that such evictions are a major factor contributing to homelessness.
Former Conservative prime minister Theresa May had pledged to eliminate Section 21 notices in April 2019, and her successor Boris Johnson also included it in his manifesto. However, the Tories later indefinitely postponed the ban due to pressure from landlord MPs, citing the need for court reforms. The early general election led to the abandonment of the plans, but Labour has confirmed it will strengthen the original proposals in its first King’s Speech.
The new legislation will eliminate Section 21 evictions for both new and existing tenancies, with the new system expected to be implemented by summer, according to Pennycook. He explained that landlords will no longer be able to evict tenants arbitrarily with a Section 21 notice, including those who complain about issues like dampness and mold without addressing those problems. Landlords will still be able to evict tenants for legal reasons such as significant rent arrears or anti-social behavior.
Extension of Awaab’s Law
Named after a toddler who died from mold exposure in his family’s social rented home, Awaab’s Law requires social landlords to investigate hazards within 14 days, repair them within an additional seven days, and address emergency issues within 24 hours. The Renters Rights Bill will extend these requirements to the private sector, ensuring that all landlords promptly address hazards and maintain safe living conditions. Additionally, a Decent Homes Standard will be applied to the private rented sector for the first time, as 21% of privately rented homes are currently deemed “non-decent,” with over 500,000 containing serious hazards.
Landlords who fail to address critical hazards will face fines up to £7,000 from local councils and could face legal action for non-compliance. A new Private Rented Sector Landlord Ombudsman will be established to provide quick and binding resolutions for complaints, and a database will be created to help landlords understand their legal obligations and demonstrate compliance.
Restrictions on Mid-Tenancy Rent Increases
The bill will prohibit mid-tenancy rent increases, allowing landlords to adjust rent only once a year according to market rates. However, rent campaigners are calling for further measures, such as rent controls, in response to the rising affordability crisis. Analysis by Shelter revealed that private renters in England paid an additional £473 million monthly on rent in 2024, averaging £103 more per month than in 2023. Although Labour has ruled out rent controls, arguing that increasing housing supply will reduce prices, the government plans to make it easier to challenge excessive rent increases.
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Support for Pet Ownership
Labour’s reforms will also strengthen tenants’ rights to request a pet, with landlords required to consider such requests and not refuse them unreasonably. Currently, there are no specific laws regarding renting with pets, but landlords can decline if they have valid reasons. The Renters Rights Bill will enable landlords to request insurance to cover potential pet damage.
Crackdown on Bidding Wars
The bill will address bidding wars for rental properties, which have become more common due to a supply shortage. Research by the New Economics Foundation found that tenants paid an extra £100 a month above the asking price last year. The legislation will require landlords and letting agents to publish the required rent for properties and ban them from soliciting, encouraging, or accepting bids above the stated price. Similar laws have been enacted in countries like New Zealand facing housing crises.
Reform of Tenancies
The bill will eliminate fixed-term assured tenancies, requiring all tenancies to be periodic. Tenants will be able to stay until they choose to end the tenancy with a two-month notice. If a landlord needs to sell or move into the property, they will be required to give four months’ notice instead of two. All renters will have a 12-month protected period at the start of a tenancy, during which they cannot be evicted on these grounds.
Ban on Benefit Discrimination
The bill will also outlaw blanket bans by landlords on tenants receiving benefits or those with children. Shelter reports that one in five families has been unable to rent in England due to having children, and the English Private Landlord Survey found that one in ten private renters had been refused a tenancy because they received benefits. The new law aims to explicitly ban such discrimination to ensure fair access to housing for all.
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