Renters' Rights Bill Introduced in Parliament News / Blog

Important Announcement - Renters' Rights Bill Introduced in Parliament News / Blog

Date: 19 September 2024

The government remains committed to its promise, expediting the passage of the Renters' Rights Bill through Parliament. The Bill was officially presented, with the Second Reading taking place on 12 September 2024.

Overview of the Bill

The Renters' Rights Bill seeks to implement new legislation aimed at enhancing tenant protections and addressing unfair rental practices. Key provisions include the prohibition of unjust "no-fault evictions," the elimination of detrimental practices such as bidding wars to inflate rents, and the regulation of excessive mid-tenancy rent increases.

The government acknowledges that over 11 million individuals in England live under the constant threat of eviction without proper justification. It is essential to note that many landlords and letting agents engage constructively with tenants to facilitate discussions regarding tenancy renewals or terminations.

Renters' Rights Bill Introduced in Parliament News / Blog

Key Measures of the Renters' Rights Bill

1. Abolition of Section 21 Evictions: The Bill will abolish no-fault evictions and transition to a more straightforward tenancy structure, ensuring all assured tenancies are periodic. This change will bolster tenant security and empower them to contest unfair practices without the fear of eviction. The government plans to implement this system in a single phase, providing immediate security for tenants.

2. Fair Possession Grounds: The Bill will establish equitable possession grounds that protect tenant rights while allowing landlords to reclaim their properties when justified. New safeguards will provide tenants with additional time to secure alternative housing in cases where landlords seek to occupy or sell the property.

3. Protection Against Backdoor Evictions: Tenants will have the right to appeal against exorbitant rent increases designed to force them out. While landlords can still adjust rents to market levels, an independent tribunal will adjudicate any disputes.

4. Introduction of a Landlord Ombudsman: A new Private Rented Sector Landlord Ombudsman will be established to facilitate prompt, fair, and impartial resolutions for tenant complaints, aligning tenant-landlord dispute resolution with established practices in social housing.

5. Creation of a Private Rented Sector Database: This database will assist landlords in understanding their legal obligations and showcase compliance. It will provide tenants with the necessary information to make informed decisions and support local councils in targeting enforcement where necessary.

6. Pet Rights: Tenants will have enhanced rights to request pets in their rental properties, with landlords required to consider such requests and cannot unreasonably refuse them. Landlords may mandate pet insurance to cover potential damages.

7. Decent Homes Standard: The Bill will extend the Decent Homes Standard to the private rented sector, ensuring that renters have access to safe and high-quality housing.

8. Implementation of ‘Awaab’s Law’: This law will establish clear legal timeframes for landlords to address serious hazards within their properties.

9. Prohibition of Discrimination: It will become illegal for landlords and agents to discriminate against tenants receiving benefits or those with children, ensuring equitable treatment for all applicants.

10. Ending Rental Bidding: The Bill will prohibit landlords and agents from soliciting or accepting offers above the advertised rent, mandating that an asking rent be published.

11. Enhanced Local Authority Enforcement: The Bill will empower local authorities by expanding civil penalties and introducing investigatory powers, alongside a requirement to report on enforcement activities.

12. Strengthening Rent Repayment Orders: The Bill will broaden the scope of rent repayment orders and increase penalties for repeat offenders.

Transformative Tenancy Reform

The Renters' Rights Bill will fundamentally reform the tenancy framework, abolishing arbitrary Section 21 evictions and providing tenants with enhanced security and stability. This new system will empower tenants to challenge poor practices confidently, while also simplifying regulations for landlords.

Periodic Tenancies

The Bill will eliminate fixed-term assured tenancies, allowing all tenancies to be periodic. This change will provide tenants the flexibility to remain in their homes until they choose to end the tenancy with a two-month notice, thereby preventing unjust financial burdens associated with substandard properties.

Possession Grounds Adjustment

The Bill clarifies and expands possession grounds, ensuring that landlords have valid reasons to reclaim their properties while protecting tenants from arbitrary evictions. Courts will require evidence for possession claims, with mandatory grounds leading to possession awards if proven.

Rent Increase Regulation

Aligning with governmental commitments, the Bill will empower tenants to contest unreasonable rent increases. Future rent adjustments will follow a standardised process, allowing landlords to raise rents annually to market rates with appropriate notice, while tenants can challenge these increases at the First-tier Tribunal.

In summary, the Renters' Rights Bill represents a significant step forward in safeguarding tenant rights while providing landlords with a clearer regulatory framework. The government is committed to facilitating a smooth transition to these new provisions, ensuring a fair and equitable rental market for all parties involved.

We hope you have enjoyed reading this and that you find it useful.

Property Fellas Group.