The Renters’ Rights Bill, which passed its second reading in the House of Commons on 9th October 2024, aims to “give greater rights and protections to people renting their homes”.
In line with the commitments outlined in the 2024 Labour Party manifesto, Labour intends to improve tenant protections and property standards, the Bill introduces new regulations that landlords need to be aware of. Below, the Landlord Insurance team here at Lansdown outlines the key aspects of the Renters’ Rights Bill and how it may impact landlords whilst it is still progressing through the legislative process.
1. Abolition of Section 21 “No-Fault” Evictions
One of the most notable changes in the Renters’ Rights Bill is the abolition of Section 21 “no-fault” evictions. Under the current system, Section 21 allows landlords to evict tenants without providing a specific reason. The new legislation will remove this provision, meaning landlords will need to rely on specific legal grounds to regain possession of their property.
- What’s changing? Assured Shorthold Tenancies (ASTs) will be replaced by periodic assured tenancies, allowing tenants to give notice to leave at any point from the start of the tenancy.
- Impact on landlords: Fixed-term tenancies will no longer offer the same level of certainty, and landlords must use specific grounds, such as the need to sell the property or house a family member, to repossess their property. Some restrictions will apply, including a requirement to give four months’ notice for repossessions based on these grounds.
2. Changes to Rent Arrears Evictions (Ground 8)
The Bill also amends Ground 8, which relates to evicting tenants due to rent arrears. Currently, landlords can evict tenants if they have two months of unpaid rent. Under the new rules, this threshold will increase to three months of arrears.
- What’s changing? Landlords will need to wait until a tenant has three months’ worth of unpaid rent before pursuing eviction under Ground 8.
- Impact on landlords: While Ground 8 remains a mandatory ground for eviction (meaning the court must grant possession if arrears are proven), landlords may face greater financial losses before they are able to take action.
3. New Landlord Database
The Renters’ Rights Bill will introduce a mandatory landlord database, requiring landlords to register their rental properties and provide detailed information on their compliance with legal standards.
- What’s changing? All landlords will be required to register, with penalties in place for non-compliance.
- Impact on landlords: Landlords will need to ensure their properties meet the required standards and are fully compliant with regulations. Failure to do so could result in fines or other penalties.
4. Court System Modernisation
In response to concerns about delays in the court system, the Bill proposes to digitise the county court process, which aims to make it easier for landlords and tenants to resolve disputes.
- What’s changing? The Property Ombudsman will have a larger role in dispute resolution, potentially helping to address issues before they escalate to the courts.
- Impact on landlords: This may lead to faster resolution of disputes, reducing the burden on landlords dealing with tenancy issues.
5. Other Key Provisions
The Renters’ Rights Bill also introduces several other provisions aimed at improving transparency and tenant protections:
- Rent increases: Landlords will need to give tenants two months’ notice before increasing rent.
- Pets in rental properties: Tenants will have the right to request permission to keep pets, and landlords must respond within 28 days. While landlords are not obligated to agree, they must provide reasonable grounds for refusal.
- Rent bidding ban: The Bill will ban rent bidding, a practice where tenants offer higher rents to secure a property. Landlords will need to advertise properties with the proposed rent clearly stated upfront.
This article is for informational purposes only and should not be considered legal advice. For further details, please visit gov.uk.
About Lansdown Insurance Brokers
Lansdown Insurance Brokers are specialists in Landlord Insurance and Rent Guarantee Insurance. We can provide flexible policies to suit individual client needs and provide advice on what cover is needed. Whether you’re a landlord, investor, or property owner call the team on 01242 524498 or email enquiries@lansdowninsurance.com.
Lansdown is part of the Benefact Group, a charity-owned, international family of financial services companies that gives all available profits to charity and good causes.