Renters’ Rights Bill comes closer to becoming law

The Renters’ Rights Bill will abolish Section 21 evictions and introduce a single system of periodic tenancies. It is the most significant reform the private rented sector (PRS) has seen since the Housing Act 1988. The Bill is currently progressing through the House of Lords and has wide-ranging implications for landlords, tenants, and letting agents. The legislation is designed to deliver “long overdue” reforms to the Private Rented Sector. Its primary goal is to give tenants more security to stay in their homes and more freedom to leave substandard properties.

The key points of the Bill so far are to abolish fixed-term assured shorthold tenancies (ASTs). As a result, all tenancies will become periodic; that means a rolling tenancy with no specific end date. Rent increases will be limited to once a year, with Section 13 notices the only way for landlords to raise the rent. Section 21 evictions will be abolished, so landlords will no longer be able to serve “no-fault” notices to regain possession of their properties. Section 8 possession grounds will be expanded, with the Government adding and updating both mandatory and discretionary grounds due to the abolition of Section 21. This will include the landlord being able to seek possession if a member of their family is moving into the property.

Rental bidding wars will be banned, with landlords and agents unable to accept offers above the advertised price. A landlord ombudsman will be introduced to help resolve disputes between landlords and tenants impartially. Landlords will contribute to a national database, with fees directly funding the ombudsman. A private rented sector database will be created to compile information about landlords and properties and provide visibility on compliance. A landlord and managing agent’s name, address, and contact details will be included, as well as any enforcement action taken against them and previous eviction notices served to tenants.

The Decent Homes Standard will be applied to all rental properties, so they must meet minimum quality standards. Landlords will not be able to refuse tenants on benefits or with children or pets; although landlords can insist on an insurance policy to cover potential pet damage. Landlords will be banned from charging more than one month’s rent upfront, and students can no longer be locked into rental agreements more than six months in advance. There will also be protection for bereaved guarantors, who will no longer be liable for rent payments following the death of a tenant.