The Labour Renters’ Rights Bill has picked up where the Renters’ Reform Bill left off, updating the rules for private landlords and tenants. The Renters’ Rights Bill is wide-ranging and will affect new and existing tenancies across the UK.
The result is that, whether you are welcoming new tenants to your rental property in Wimbledon or Roehampton, already rent out a period apartment in Mayfair, or are planning to purchase a buy-to-let in New Malden, you will need to get up to speed. While the new landlord bill hasn’t yet become law, it’s sensible to be prepared.
Read on as we outline the key details of the Renters’ Rights Bill 2024.
Labour’s Renters’ Rights Bill builds on the intentions behind the Conservative government’s own Renters’ Reform Bill. Originally planned as part of the delivery of the Conservative 2019 manifesto to ban ‘no fault’ evictions and rebalance the private rental market, the Renters Reform Bill was not passed before the government was dissolved in summer 2024.
The Renters’ Rights Bill had its first reading in the House of Commons on 11th September 2024, and is making steady progress. The Minister for Housing, Communities and Local Government, Matthew Pennycook, has voiced his intentions to introduce the reforms “as quickly as possible”, and many expect the Renters’ Rights Bill to be passed in late spring or summer 2025.
A full summary of the Renters Rights Bill 2024 is available on gov.uk, but, if introduced, here are some of the major changes it would usher in.
The government plans on abolishing Section 21 ‘no fault’ evictions, used when a landlord needs to reclaim the property. The grounds for possession will be modified under Section 8, and some of the other rules will be adjusted too, including:
All new tenancies will be assured periodic tenancies, with existing fixed-term tenancies becoming periodic tenancies. Tenants will be able to live in the property until they give 2 months’ notice.
Landlords will have to register with a new, mandatory Private Rented Sector Database which will record the details of landlords, and let tenants know their options if they believe their landlord is failing to meet standards.
The idea of an impartial property ombudsman has been floated for a while, and now forms part of the Renters’ Rights Bill. If the law passes, all landlords will need to sign up to a property ombudsman and tenants will be able to raise complaints with the ombudsman service, free of charge.
Local councils will be able to take action if a landlord doesn’t register with the database or ombudsman service, or fails to comply with other standards. They would be able to hand out a civil penalty up to £7,000 – or £40,000 for repeat offenders.
To end to bidding wars, landlords and letting agents will have to advertise the listed rent when marketing property. They won’t be allowed to request or accept offers above that amount.
Landlords will have to justify their planned rent increases, and it will be easier for tenants to challenge higher rents through the tribunal process.
It will become illegal for landlords to discriminate against tenants in receipt of benefits or with children under the new bill, whether through their advertising or implicitly.
The new Renters’ Rights Bill goes further than the Renters’ Reform Bill when it comes to raising living standards, with the inclusion of action on damp and mould problems. Already integrated in council housing, the bill brings the Decent Homes Standard (DHS) and Awaab’s Law to privately rented properties. New expectations for landlords would include:
Under the Renters’ Rights Bill, pets in lets rules will change and tenants will have the right to request a pet unless it’s clearly impractical (e.g. a large dog in a compact studio). The Tenant Fees Act 2019 currently prevents landlords from recovering the costs of pet insurance. This would be amended, allowing landlords to reclaim reasonable costs of pet insurance, or require tenants to take out cover for any damage.
On the surface, the Renters’ Rights Bill has a lot in common with the former government’s Renters’ Reform Bill – but some further steps didn’t feature on the Conservatives’ agenda.
Some points in the Renters’ Rights Bill are new on the agenda, with differences between the two landlord and tenant bills including:
Labour’s Renters’ Reform Bill expands on the Conservatives’ bill on other points, such as:
There are also many smaller differences between the two bills, and there are likely to be amendments and changes as the new bill passes through parliament.
The next steps are for the Renters’ Rights Bill to complete its journey through the House of Commons, then undergo three readings and the committee stage in the House of Lords. Any proposed amendments will then be made, before the bill receives Royal Assent and becomes law.
If you are a landlord in Wandsworth, Putney, Clapham, South Wimbledon or the surrounding areas, we will be happy to discuss the Renters’ Rights Bill and how those changes could affect you. Contact Robert Holmes today to speak to our knowledgeable team.
Ticking off the items on this list will help you keep track of your legal responsibilities when renting out a property.
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