The Renters’ Rights Bill is a piece of legislation that Labour are eager to progress even though it was first introduced under the Conservative government. On 11 September 2024, the Renters’ Rights Bill was introduced to Parliament for its first reading.
What will Renters’ Rights Bill do?
It will change the landscape of residential tenancy evictions, remove the ability for a residential landlord to serve a Section 21 Notice (no-fault) and give a tenant two months to leave their homes. There has been controversy around Section 21 no-fault evictions for many, many years, and when it is finally enacted, the Renters’ Rights Bill will give tenants reassurance that they have longer-term security.
Whereas the abolition of section 21 was going to be phased in in the old Renters (Reform) Bill, this doesn’t appear to be the case under the Renters Rights Bill. We don’t know yet when the new bill will take effect, but it could be very quickly, and it could mean that a landlord’s ability to serve a Section 21 notice will be lost overnight.
A landlord will only be able to give a tenant notice to end the tenancy based on very limited grounds.
The government has long held a concern that local councils are having to provide more and more support to renters because landlords are able to easily give two months notices to bring tenancies to an end. It is thought that in 2023, 26,000 households faced homelessness as a result of a Section 21 eviction.
There was a huge increase in the service of Section 21 notices between 2023 and early 2024, as landlords worried that Section 21 notices were about to be banned and that it would become increasingly difficult to get possession of their properties back. The new bill will also extend AWAAB’s law into the private rented sector and end blanket bans on those with benefits or children.
Standards will also be driven up as the Decent Homes Standard will be applied to the private rental sector for the very first time. It is estimated that currently, 21% of privately rented homes are considered non-decent and that more than half a million contain serious hazards. Clear expectations will be set so that tenants can expect safe, well-maintained, and secure living conditions. AWAAB’s law will mean that renters in England will be able to challenge dangerous living conditions, and landlords will be required to work to clear timeframes to make homes safe where they contain serious hazards.
There will also be a ban on rental bidding wars, which will crack down on those who make the most of the housing crisis by forcing tenants to bid for their properties. Landlords and letting agents will be required to publish an asking rent for their property and banned from asking for encouraging or accepting any bids above that price. In addition, there will be a ban on in-tenancy rent increases, which will be written into contracts to prevent landlords from implementing high rent mid-tenancy, which would often force tenants out. Under the new bill, landlords would only be allowed to raise the rent once a year and only to market rent.
A Private Rented Sector Database will also be created to help landlords understand their compliance obligations and provide tenants with the information they need to make informed choices about new tenants.
