The Renters’ Rights Bill successfully passed its second reading in the House of Commons on the 9th of October 2024. It will now proceed to the committee stage, where detailed examination will take place. Once this is complete, it is expected that the Bill will become law in early 2025.

The Bill is expected to introduce significant reforms that will directly affect private landlords. Key provisions include:
Abolition of ‘no-fault’ evictions (Section 21): The Bill proposes the removal of Section 21 of the Housing Act 1988, which allows landlords to terminate assured short-hold tenancies without providing a reason. Once the Bill is enacted, landlords will need to provide valid grounds for ending a tenancy, such as breaches of contract, the landlord wishing to sell the property, or needing it for personal use.

New rules on rent increases: The Bill introduces stricter rules around how and when landlords can increase rent. Rent increases will need to follow a clearer process and be subject to greater scrutiny, with tenants having the right to challenge rises they believe to be unfair. There may also be limits on the frequency of rent increases during a tenancy, ensuring more predictable costs for tenants.

Minimum property standards and stricter enforcement: The Bill outlines more robust requirements for property maintenance and repairs. Landlords will be expected to meet higher standards for property conditions, with new obligations around repairs, energy efficiency, and the overall safety of rented homes. Additionally, Awaab’s Law will be introduced, setting a legal obligation for landlords to address hazards such as damp and mould in a timely manner.

Permission to keep pets: One of the more notable provisions is the requirement for landlords to permit tenants to keep pets in their rental properties, subject to reasonable conditions. Landlords will only be able to refuse consent for pets if there is a legitimate reason, and tenants may be asked to take out pet insurance to cover any potential damages.

Introduction of a National Landlord Register: The Bill will create a national landlord database to improve transparency and accountability. All landlords will need to be registered, providing authorities with better oversight to ensure compliance with legal standards. This may also lead to quicker identification and enforcement against rogue landlords.

Establishment of a Landlord Ombudsman: To provide a fair and impartial means of resolving disputes between landlords and tenants, the Bill introduces a Landlord Ombudsman. All private landlords will be required to register with the Ombudsman service, which will handle complaints from tenants on matters such as repairs, property conditions, and other disputes. This aims to offer a more efficient alternative to court proceedings.

One thing that must be remembered is that these reforms may impact your current letting arrangements, and it will be crucial for landlords to stay compliant with the new legislation once it is enacted.

How can GHE help you?

We understand that navigating these changes can be challenging, but please be assured that we are committed to supporting you every step of the way. As part of our efforts, our dedicated team will be individually reviewing each file to ensure that nothing is overlooked in the run-up to the new bill being passed. This thorough review process is designed to address any potential issues and make sure all necessary updates are made. If any changes or adjustments are required, you will be promptly notified and provided with clear guidance on what needs to happen next. Our goal is to ensure a smooth transition, and we’re here to help make the process as straightforward as possible for you.

If you have any questions or queries about the new Bill, don’t hesitate to contact us. Although the Bill has not been finalised yet and is still subject to change, we will do our best to answer your questions.