Government publishes Draft Renters’ Rights Bill 

In 2022, the Conservative government proposed to reform the private rental sector by way of the Renters’ Reform Bill. This was shelved prior to the general election and has since been superseded by Labour’s Renters’ Rights Bill. Labour released its first draft of the Bill earlier this month (September 2024) with the aim of improving the current system and offering greater security and stability to tenants.  

The Bill still needs to pass through various stages before it becomes law and it’s important to note it could be amended during this time. Emily Stark, Solicitor in Coodes’ Personal Disputes team, explores the new Bill.  

The Renters’ Rights Bill  

Periodic tenancies and evictions

One of the biggest changes to be introduced through the Renters’ Rights Bill is the move from Assured Shorthold Tenancies (AST) to assured tenancies. This means that there is no fixed tenancy period for new tenants, instead, all tenants will be able to stay in their homes until they decide to leave by provision of two months’ notice. The new tenancy system will apply to all private tenancies after a specific date, which is yet to be confirmed. From that date, existing tenancies will be converted and new tenancies commenced will be an assured tenancy, regardless as to what it may say on the agreement, in accordance with the new rules.  

Another significant change is the abolition of Section 21 evictions, also known as ‘no fault evictions’.  Landlords will need to satisfy one of the grounds set out in Schedule 2 of the Housing Act 1988 to recover possession of a property. This new system will be implemented in one stage, giving all tenants immediate security.  

It has also been set out in the draft Renters’ Rights Bill that the grounds for possession and notice periods are also being reviewed. The key proposed changes are as follows: 

• Ground 1: Occupation by landlord or family. This ground is to be expanded, to provide for possession of a property for the purposes of it being occupied by the landlord’s immediate family. For example, their parents or children, and will include half-blood relatives. The notice period is being extended to four months.  

• Ground 1A: Sale of residential property. This is a new ground whereby a landlord intends to sell their freehold or leasehold interest in a residential property. The notice period will be four months.  

• Ground 8: Rent arrears. This is an amendment to an existing ground. Currently Ground 8 allows landlords to recover possession when a tenant is at least two months or eight weeks in arrears with their rent. The proposed amendment will mean a landlord can only rely on this ground when a tenant is at least three months or 13 weeks in arrears with their rent. The level of arrears must be above the threshold both at the date of service of the notice and the date of the possession hearing. The notice period is also to be increased, from two weeks to four. 

It should be noted that a landlord will not be able to evict a tenant under grounds 1 or 1A within the first 12 months of the tenancy agreement.  

The above is a summary of some of the notable proposed changes, not all of them. At present, the draft Bill intends to provide tenants with more protection which could result in landlords experiencing difficulty in recovering possession of their rental properties, unless one of the mandatory Section 8 grounds apply. The grounds are subject to change as the Bill may be amended as it progresses through parliament.  

Rent reviews will also be abolished, with rent increases having to go through the formal Section 13 process, meaning if a tenant challenges a rent increase it will go to the Tribunal to be determined.  The notice period has been extended from one month to two.  

Complaints and compliance 

The Renters’ Rights Bill will also introduce a new Private Rented Sector Landlord Ombudsman. They will provide quick, fair, impartial and binding resolution for tenants who file a complaint against their landlord. In social housing, there are established redress practices for tenants who make a complaint. This Bill will bring private tenant-landlord complaint resolution up to the same standard.  

The Bill also establishes the creation of a private rental sector database. The aim is to help landlords understand their legal obligations and demonstrate compliance, and provide information to tenants to help them make informed decisions before entering into a tenancy agreement. It will also help local councils target necessary enforcement activity. Landlords will need to be registered on the database in order to use certain grounds for possession.  

Property standards 

In terms of the properties themselves, the Renters’ Rights Bill will apply the Decent Homes Standard to private rentals. Awaab’s Law will also apply to the rental sector setting out a clear legal expectation about the timeframes landlords have to make homes safe. This includes health and safety risks such as moisture and mould, extreme temperatures, and the presence of carbon monoxide or other harmful combustion byproducts. 

Another aspect of the Bill will make it illegal for landlords and agents to discriminate against prospective tenants who are in receipt of benefits or have children. In addition, for those with pets or who are looking to get a pet, tenants will be given strengthened rights. A landlord must consider and cannot unreasonably refuse a tenant’s request to have a pet within 28 days. Landlords will be able to request insurance is obtained by the tenant, or reimbursed to the landlord, to cover any damage that may occur as a result.   

Penalties 

The draft Renters’ Rights Bill aims to end the practice of rental bidding. This occurs when landlords and agents accept offers above the advertised rental rate. Landlords and agents will be required to publish an asking rent for the property, and it will be illegal to accept offers above that rate. 

The Bill will also strengthen rent repayment orders, which are orders whereby a landlord is required to pay rent or benefits after committing a particular offence, by extending them to Superior Landlords (the owners). The maximum penalty will be doubled, and repeat offenders will have to repay the maximum amount. The following are some of the offences which can result in a rent repayment order: 

• Using or threatening violence to recover possession of a property 

• Illegal eviction or harassment 

• Failure to comply with an improvement notice 

• Having control of, or managing, an unlicensed House in Multiple Occupation (HMO) 

Please note this is not a complete list.  

In addition to the above, local authorities are to being given extended powers. The Renters’ Rights Bill will introduce a package of investigatory powers and bring in a new requirement for local authorities to report on enforcement activity. Local councils can issue penalties against landlords who fail to comply with any of the Bill’s reforms.  

What happens next? 

The Renters’ Rights Bill is still in its draft format and is at an early stage of passing through parliament. It must pass through further stages before it becomes law and during this time it is likely the Bill will undergo changes.  

Coodes works closely with landlords nationally, from keeping them up to date with their legal obligations to recovering possession of rental properties. If you are a landlord who requires any advice or assistance our Personal Disputes team can help.  

Contact Emily Stark by emailing emily.stark@coodes.co.uk or call 01872 246219. Alternatively, you can use our online contact form.