Renters’ Rights Bill – Government reveals full details

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.