Labour’s Renters’ Rights Bill saw it’s first reading in the House of Commons yesterday 11th September 2024. The Bill promises major changes to the UK rental market, aiming to create a fairer and more balanced system for both tenants and landlords. Building on the previous government’s Renters’ Reform Bill, Labour’s proposals address key issues such as eviction practices, tenant rights, and rental property standards.

Abolition of ‘No-Fault’ Evictions

One of the most significant changes is the abolition of Section 21 “no-fault” evictions, which currently allows landlords to evict tenants without providing a reason. Under the new Bill, landlords will need a valid reason to repossess their property, offering tenants more stability. However, landlords will still have expanded legal grounds for eviction, such as when they need to sell the property or move in themselves. Additionally, the Bill strengthens landlords’ ability to evict tenants engaging in anti-social behaviour. View the new Grounds for Possession here

No more Fixed-Term Tenancies

The move away from fixed-term tenancies is another important change. Under the new rules, all rental agreements will be periodic from the start, allowing tenants to leave with a two-month notice. This flexibility is intended to benefit tenants, but could create more frequent tenant turnover.

Fair Rents

The Bill also aims to address unfair rent increases. While it doesn’t introduce strict rent controls, it does include measures to prevent excessive hikes. Rent review clauses will be abolished, and tenants will have clearer ways to challenge unreasonable increases. Landlords will still be able to apply for an annual rent increase in line with the market by using a Section 13 notice. The introduction of a dispute resolution service, such as an ombudsman, could provide a faster, less costly alternative to taking rent disputes to court.

Pets not to be Unreasonably Refused

Pets are another key area of reform. Landlords will no longer be able to impose blanket bans on pets. Tenants will have the right to request permission to keep pets, and landlords must consider these requests reasonably. However, landlords can still refuse on valid grounds, such as if the property isn’t suitable or lease restrictions prevent it. Landlords will also be able to require tenants to take out pet insurance, though specific details are yet to be finalised.

Decent Homes Standard and ‘Awaab’s Law‘

On property standards, the Bill introduces the Decent Homes Standard to private rented properties. This will ensure a minimum level of safety, health, and quality, with landlords required to maintain properties in a reasonable state of repair. Additionally, the Bill brings “Awaab’s Law” into the private sector, enforcing strict deadlines for landlords to address safety issues such as damp and mould.

New Landlord Database and Ombudsman

A centralised digital rental database will be created to improve transparency, allowing both landlords and tenants to access vital information about properties and compliance. Landlords will also be required to join a professional ombudsman scheme, even if they don’t use a letting agent, ensuring all parties have access to fair dispute resolution.

Tenants with Children or in Receipt of Benefits

Finally, the Bill will make it illegal for landlords to discriminate against tenants based on receiving benefits or having children. Local authorities will also gain greater powers to enforce these standards and investigate non-compliance.

Overall, Labour’s Renters’ Rights Bill seeks to strike a balance between tenant protection and landlord rights, reshaping the rental landscape for a fairer future. For landlords, adapting to these changes will be essential, but it also presents opportunities to enhance property standards and attract long-term, reliable tenants. View the Bill here

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