Understanding the Renters' Rights Bill 2024-25 as currently drafted

Understanding the Renters' Rights Bill 2024-25 as currently drafted

The Renters' Rights Bill 2024-25 is poised to introduce significant changes aimed at enhancing the protections for tenants across the country. This legislation is a response to the growing demand for more equitable housing policies, addressing long-standing issues faced by tenants.

Key Provisions of the Bill

1. Abolishment of Assured Shorthold Tenancies: Instead private rented sector tenancies would be periodic assured tenancies with no end date, intended to provide more security for tenants. Tenants would need to provide two months’ notice to end the tenancy.
2. Stronger Security of Tenure: One of the most notable aspects of the Renters' Rights Bill is the enhancement of tenant security. The bill proposes measures that will remove the S21 not fault eviction process but instead just expand the number and scope of the existing Ground 8 grounds for possession into 26 mandatory grounds and 11 discretionary grounds. This would make retaliatory evictions harder which must be a positive, some of the ground 8 terms will include eviction should the landlord need to live in it themselves (ground 1) or sell the property (ground 1A). It is currently suggested that the tenant would get at least a 12-month protection window, at the start of the tenancy from, from ground 1 & 1A evictions, however MP’s are considering increasing this to 24 months. Furthermore, MP’s are calling for tenants to be compensated should the landlord choose to evict them through no fault of their own.
3. Rent Control Measures: The current draft includes limiting rental increase to once every 12 months which is no different to the current law however the notice period is proposed to increase from 1 month to 2 months. However during the second reading several MP’s have lobbied to introduce rent controls, to make rents more affordable, by restricting rent increases to the lowest of either average wage growth or inflation. The government was quoted as saying they remained apposed to the introduction of rent controls. If this is brought in it would represent a significant change in the market however it looks unlikely.
4. Decent Homes Standard: The bill places a strong emphasis on the quality of rental properties. Landlords will be required to maintain their properties to a certain standard, ensuring that tenants have access to safe and habitable living conditions. This includes regulations and stronger penalties around heating, plumbing, and overall structural integrity.
5. Landlord Redress Scheme and sector data base: It is proposed that a new ombudsman service for the private rented sector, which will require all private landlords to join. The service would provide fair, impartial and binding resolution for tenants’ complaints about their landlord. It would have powers to compel landlords to issue an apology, provide information, take remedial action, and/or pay compensation. The ombudsman service would also benefit landlords as it is expected to be a quicker, cheaper and less adversarial mechanism to resolve disputes than the court system.
6. Rental Bidding: Would prohibit landlords and letting agents from inviting, encouraging or accepting a tenant’s offer to pay rent at above the advertised rate. The rent would need to be pre-determined which will create a more artificial rental value because an unrestricted market would naturally find its balance this has the potential to drive prices up because agents will be incentivised to se asking rents high and then reduce if not demand. Whereas in the existing market the rent can be set and then changed freely dependent on supply and demand.
7. Renting With Pets: Clauses 10 and 11 would make it an implied term in most assured tenancies that landlords could not unreasonably refuse a tenant’s request to keep a pet. As a condition of giving consent, a landlord could inform the tenant in writing that they must: 1) have insurance covering the risk of pet damage; or 2) pay the landlord’s reasonable costs of having pet damage insurance.
8. Assured Agricultural Occupants: tenants with an assured agricultural occupancy continue to enjoy greater security of tenure than those with a standard assured tenancy. It is suggested that landlords could continue to ‘optout’ of providing assured agricultural occupancies and instead provide periodic assured tenancies to qualifying workers.

The Impact of the Bill

The Renters' Rights Bill 2024-25 represents a significant shift in the balance of power between landlords and tenants. By implementing these changes, the government aims to create a fairer housing market that prioritizes the needs of renters. Advocates believe that this bill will not only improve living conditions but also contribute to a more stable and equitable society.

As discussions around the bill continue, it's essential for tenants to stay informed about their rights and the implications of this legislation. The passage of the Renters' Rights Bill could herald a new era for renters, fostering a culture of respect and fairness within the housing sector.