Renters’ Rights Bill – Government reveals full details

Renters’ Rights Bill – Government reveals full details

10:06 AM, 27th September 2024, About 2 weeks ago 34

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The UK government has revealed more details about the Renters’ Rights Bill which will see Section 21 ‘no-fault’ evictions being banned.

Section 21 is described in the update as a ‘scourge’ and the law is set to come into force next summer.

Landlords might also be alarmed at the prospect of £7,000 civil penalties for not signing up to the Private Rented Sector Landlord Ombudsman.

Repeat breaches of not joining the Ombudsman could see landlords being hit with a criminal prosecution and a fine of £40,000.

Also, councils will be handed a ‘package of investigatory powers’ to crackdown on criminal landlords.

Four months’ notice to gain possession

Other highlights for landlords include being required to give tenants four months’ notice to gain possession.

Though if the landlord or a family member wants to move in, possession can’t be sought in the first year of a new tenancy.

There are protections against excessive above-market rents with tenants able to appeal such rises.

The new Private Rented Sector Landlord Ombudsman will offer ‘quick, fair and impartial resolution’ for tenants’ complaints about their landlords.

Help landlords understand their legal obligations

The new Private Rented Sector Database will help landlords understand their legal obligations and demonstrate compliance.

It will also provide tenants with better information to make informed decisions when entering into a tenancy agreement.

There’s a strengthening of tenants’ rights to request a pet in their property, which landlords cannot unreasonably refuse.

Legal expectations when addressing serious hazards

The Bill will apply the Decent Homes Standard to the PRS and introduce ‘Awaab’s Law’ to set clear legal expectations when addressing serious hazards within specified timeframes.

It will also be illegal for landlords and agents to discriminate against prospective tenants who are in receipt of benefits or have children.

And rental bidding will be prohibited.

Below is an overview of the Renters’ Rights Bill and the full details can be found on the Ministry of Housing, Communities & Local Government website:

  • Abolish section 21 evictions and move to a simpler tenancy structure where all assured tenancies are periodic – providing more security for tenants and empowering them to challenge poor practice and unfair rent increases without fear of eviction. We will implement this new system in one stage, giving all tenants security immediately.
  • Ensure possession grounds are fair to both parties, giving tenants more security, while ensuring landlords can recover their property when reasonable. The bill introduces new safeguards for tenants, giving them more time to find a home if landlords evict to move in or sell, and ensuring unscrupulous landlords cannot misuse grounds.
  • Provide stronger protections against backdoor eviction by ensuring tenants are able to appeal excessive above-market rents which are purely designed to force them out. As now, landlords will still be able to increase rents to market price for their properties and an independent tribunal will make a judgement on this, if needed.
  • Introduce a new Private Rented Sector Landlord Ombudsman that will provide quick, fair, impartial and binding resolution for tenants’ complaints about their landlord. This will bring tenant-landlord complaint resolution on par with established redress practices for tenants in social housing and consumers of property agent services
  • Create a Private Rented Sector Database to help landlords understand their legal obligations and demonstrate compliance (giving good landlords confidence in their position), alongside providing better information to tenants to make informed decisions when entering into a tenancy agreement. It will also support local councils – helping them target enforcement activity where it is needed most. Landlords will need to be registered on the database in order to use certain possession grounds.
  • Give tenants strengthened rights to request a pet in the property, which the landlord must consider and cannot unreasonably refuse. To support this, landlords will be able to require pet insurance to cover any damage to their property
  • Apply the Decent Homes Standard to the private rented sector to give renters safer, better value homes and remove the blight of poor-quality homes in local communities.
  • Apply ‘Awaab’s Law’ to the sector, setting clear legal expectations about the timeframes within which landlords in the private rented sector must take action to make homes safe where they contain serious hazards.
  • Make it illegal for landlords and agents to discriminate against prospective tenants in receipt of benefits or with children – helping to ensure everyone is treated fairly when looking for a place to live.
  • End the practice of rental bidding by prohibiting landlords and agents from asking for or accepting offers above the advertised rent. Landlords and agents will be required to publish an asking rent for their property, and it will be illegal to accept offers made above this rate.
  • Strengthen local authority enforcement by expanding civil penalties, introducing a package of investigatory powers and bringing in a new requirement for local authorities to report on enforcement activity.
  • Strengthen rent repayment orders by extending them to superior landlords, doubling the maximum penalty and ensuring repeat offenders have to repay the maximum amount.

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Reluctant Landlord

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10:33 AM, 27th September 2024, About 2 weeks ago

Lots more detail required before LL's have any real idea of the potential implications.

Cost of being registered with the Ombudsman and the national database for instance?

How can a LL claim off any insurance cover for pet damage when the pet to be insured is not even owned by them?

As ever catch soundbites with little meat on the bones....

Jo Westlake

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11:52 AM, 27th September 2024, About 2 weeks ago

There certainly needs to be far more detail.
Especially about pets. Allowing a new tenant to bring an existing pet that can be seen and assessed by the potential landlord is very different to allowing existing tenants with no experience of pet ownership to suddenly acquire an untrained puppy or poisonous snake.

Ryan Stevens

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13:00 PM, 27th September 2024, About 2 weeks ago

Reply to the comment left by Reluctant Landlord at 27/09/2024 - 10:33
When they do put meat on the bones they will realise (maybe) that they have shot themselves in the foot!!

Ian Narbeth

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13:03 PM, 27th September 2024, About 2 weeks ago

Reply to the comment left by Jo Westlake at 27/09/2024 - 11:52The Renters Reform Bill would have allowed landlords to charge the cost of taking out pet damage insurance. Landlords, under no circumstances, I repeat, no circumstances accept insurance taken out by the tenant for reasons I explained here.
Unless Labour allow landlords to insure there is a major problem. Landlords should ask for a non-invalidation letter from insurers basically saying the policy cannot be invalidated. Insurers are unlikely to be willing and that may be a way to turn down the request for a pet.

havens havens

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13:59 PM, 27th September 2024, About 2 weeks ago

I think the Renters’ Rights Bill is a great step forward for tenants, especially with the ban on no-fault evictions. It’s essential that we also support landlords, like myself, who want to ensure our properties are well-maintained. The new landlord ombudsman will help address complaints, but it’s crucial that landlords have the tools and resources to understand their responsibilities and improve property standards. Regular check-ins on how this law works in practice will be vital to keeping the rental market fair for everyone.

JB

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14:18 PM, 27th September 2024, About 2 weeks ago

Reply to the comment left by havens havens at 27/09/2024 - 13:59
I don't actually think you are a landlord

Jo Westlake

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14:27 PM, 27th September 2024, About 2 weeks ago

Reply to the comment left by Ian Narbeth at 27/09/2024 - 13:03I'm certainly hoping the insurance industry is the deciding factor on pets. It would be great to be able to say to our tenant that of course they can have a pet as long as they are prepared to pay for an inventory clerk to prepare an full condition report on the property prior to getting the pet and pay for insurance that fully covers all damage caused by the prospective pet (including odour). Such insurance to cover full loss of rent while the property is being restored to its pre-pet condition for the next tenant. Obviously insurance is problematic as the tenant could cancel the policy immediately after showing it to the landlord or if it's in the landlords name it could cause all sorts of issues with no claims discounts on an entire portfolio of insurance policies.
I can't see any insurance company offering that type of cover and if they won't take the risk why should we? Their shoulders are somewhat broader than ours.

Jo Westlake

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14:32 PM, 27th September 2024, About 2 weeks ago

I'm certainly hoping the insurance industry is the deciding factor on pets. It would be great to be able to say to our tenant that of course they can have a pet as long as they are prepared to pay for an inventory clerk to prepare an full condition report on the property prior to getting the pet and pay for insurance that fully covers all damage caused by the prospective pet (including odour). Such insurance to cover full loss of rent while the property is being restored to its pre-pet condition for the next tenant. Obviously insurance can be problematic. If the tenant takes out the policy they could easily cancel it immediately after showing it to the landlord and the cover is likely to be totally inadequate. If it's in the landlords name it could cause problems with no claims discounts on a whole portfolio of policies.
I can't see any insurance company offering that type of cover and if they won't take the risk why should we? Their shoulders are somewhat broader than ours.

Ian Narbeth

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15:07 PM, 27th September 2024, About 2 weeks ago

Reply to the comment left by havens havens at 27/09/2024 - 13:59
Who is the "we" that is going to support you to ensure your properties are well-maintained?

Landlords are being taxed on non-existent profits (I assume you have heard of s24) and are subject to an excess of red tape which all costs money, leaving less for the landlord to spend to maintain/upgrade his property.
Tenants now being able to challenge every proposed rent increase and put off the day when the rent rises to market levels will not help landlords faced with increased costs.
Dealing with anti-social behaviour will become all but impossible. All landlords will be able to do is write a strongly worded letter warning the tenant that if he does not change his behaviour his victim lives next door and will give evidence against him in about 9 months' time so please would he mind awfully not being anti-social.

Mark my words. The RRB is going to be bad for everyone. The supply of properties will reduce and costs will rise. That will lead to an increase in rents and homelessness - the exact opposite of what Government claims to want.

Prospective Landlord

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15:13 PM, 27th September 2024, About 2 weeks ago

I foresee a massive sell off, steep increase in rents and then a watering down/repeal of the bill.

Does this affect lodgers?

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