The Renters’ Rights Bill | What Does it Mean for Landlords?

The Renters’ Rights Bill was spoken about in parliament this week. It has been long awaited by renters and landlords alike but for different reasons. We’ve put together this article to help you understand what it could mean for you as a landlord. Once the bill has been announced, we shall update this post accordingly.

The Labour government has brought the Renters’ Rights Bill into parliament for its first reading this week. The bill will apply to England and will implement the no-fault evictions clause. When the bill becomes law, it will ban no-fault evictions. Housing Minister Matthew Pennycook hopes to introduce the ban in the summer next year. Alongside this, tenants will be allowed to request a pet and question rent rises.

What is the Renters’ Rights Bill?

The bill aims to give renters better protections against unscrupulous landlords. Section 21 is used by landlords to evict tenants without giving a reason. The new bill will ban landlords from using Section 21 as a valid reason for evicting tenants.

Tenants will also benefit from a 12-month protected period at the beginning of a tenancy, during which landlords cannot evict them to move in or sell the property. Landlords will need to provide 4 months’ notice when using these grounds, giving tenants more time to find a new home.

Nothing in the bill restricts landlords from increasing the rent, however there will be a new system implemented. All rent increases in the private rented sector will be carried out through the statutory ‘section 13’ process, as revised by the bill. This requires a landlord to complete a simple form, which will be published on the government website. They will then need to serve this to the tenant. If the tenant believes the proposed increase exceeds the market rate, they can challenge it by applying to the First-tier Tribunal. This must be before the starting date of the proposed new rent and tenants should notify their landlord that they are doing so. The bill introduces changes to the Tribunal system to help tenants contest unreasonable rent hikes.

It will also become illegal to create ‘bidding wars’ between prospective tenants. This means landlords and letting agents will have to publish an asking rent price for the property, and will not be allowed to accept offers higher than this. It will also become illegal for landlords to discriminate against tenants who have children or are receiving benefits.

The bill will also introduce new laws to end the practice of rental bidding wars, which has become a large problem for tenants in recent years. It will also expand on Awaab’s law, which would require landlords and letting agents to fix hazards, like mould, within a certain timeframe.

What does this mean for landlords?

So what does this mean for landlords? Ultimately it would mean increased pressure to deliver better living standards for renters. In the future, landlords will have to use Section 8 of the bill, for grounds of possession. To find out what is classed as reasonable grounds for repossession, head to the government website here.

Although the bill is favourable towards renters, as a landlord, your priority should be your tenants, so try to see the bill as a positive, even if it does bring more work for you.

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