Shropshire Farming Talk: The latest on the Renters’ Rights Bill

 The aim of The Renters’ Rights Bill is to deliver a fairer, more secure and higher quality private rental sector for both tenants and landlords.

Here are some of the main aspects of the bill that we already know: 

A Ban on No-Fault Evictions 

This is the key proposal which has been in the headlines. Currently, landlords can serve notice under Section 21, to evict tenants without reason, as long as they give the required two months’ notice.

The removal of Section 21 means that landlords must use a Section 8 notice instead, citing a specific ground for possession. The Section 8 grounds for possession are to be revised to include various scenarios for needing possession. For example, if a landlord wishes to sell or redevelop the property, to move into the property themselves or needing the property for a family member to live in. The abolition of Section 21 simply puts a stop to landlords giving notice to their tenants without giving a reason.

Rent Increases 

The bill does not introduce rent caps. An annual rent increase can still be proposed by landlords. They must do this by serving the tenant a Section 13 notice. Any proposed increase must be in line with local market rents and evidence provided.

Abolition of Fixed-Term Tenancies 

Fixed term Assured Shorthold Tenancies (ASTs) are to be abolished and replaced by periodic tenancies. Tenants will be able to terminate a periodic tenancy by giving two months' notice. Landlords will be able to terminate but only on certain prescribed grounds.

Other key proposals include:

Decent Homes Standards

All private rental homes are to be safe and hazard-free, addressing the high number of substandard homes in the sector. Labour has introduced new reforms, such as extending Awaab’s Law, which requires social landlords to address mould and damp issues within 14 days.

Pets

Landlords will not be able to ‘unreasonably refuse’ a tenant’s request for a pet. 

Landlord Enforcement and Penalties

Fines will be up to £7,000 for minor or initial non-compliance and up to £40,000 for repeat offences.

Digital Private Rented Sector Database and Property Ombudsman

The creation of a new ombudsman responsible for enforcing policy changes and resolving disputes between tenants and landlords at a faster rate, without the need to go to court. The bill also proposes a digital system for tenants to manage their tenancies and communicate with landlords.

The Renters’ Rights Act is likely to be implemented in the summer of 2025. 

Berrys are fully equipped and up to date with changes as they continue to be announced. 

If you would like any further information or to discuss any residential property letting matters, please contact me on  07786 977049.