The UK Government are preparing to introduce the Renters Rights Bill, marking the largest overhaul of housing law since 1988. Housing Minister Matthew Pennycook has suggested that this Bill could become law by summer 2025, bringing significant changes to both tenants and landlords. Here’s what you need to know:
1. End of “No-Fault” Evictions: Section 21 notices, which allow landlords to repossess properties without reason, will be abolished. Every eviction will now require a valid reason under a reformed Section 8 Notice regime. New grounds for possession include:
- The landlord wants to redevelop the property;
- A superior lease has ended;
- Enforcement action has been taken by a local authority;
- The property comprises supported accommodation, and the support has ceased;
- The landlord or a family member wishes to occupy the property as their principal home;
- The landlord wishes to sell the property (with conditions, including a 12-month restriction on re-letting or marketing the property).
2. Shift to Periodic Tenancies: Fixed-term tenancies will be replaced by periodic rolling tenancies, giving tenants more flexibility.
3. Changes to Existing Grounds for Possession: The threshold for rent arrears (Ground 8) will be set at 13 weeks or three months to meet mandatory grounds for eviction. Notice periods for serious rent arrears will be extended to four weeks, while many “no-fault” grounds will require four months’ notice.
4. Prohibition of Rental Bidding: Landlords will no longer be able to invite higher bids from potential tenants. Rent prices must be set and cannot be adjusted during the letting process.
5. Rent Review: Rent increases will be limited to once every 12 months, in line with the local market rate. Section 13 notices will be required for rent increases, and contractual rent review clauses will no longer apply.
6. Pets: Tenants can request to keep a pet, and landlords cannot unreasonably refuse.
7. Property Database: A new comprehensive database will provide essential information for landlords, tenants, and local authorities.
8. Property Ombudsman and Redress Scheme: A new Property Ombudsman will handle disputes without court proceedings. Landlords must join a Redress Scheme or face penalties. The Ombudsman will ensure compliance, and membership will likely involve a fee.
9. Decent Homes Standard: Landlords must meet new property standards to ensure safety and hygiene, aligning with Awaab’s Law. Landlords will be required to address health hazards within specific timeframes, such as 14 days for certain maintenance issues.
10. Anti-Discrimination Measures: It will be illegal for landlords to discriminate against tenants receiving benefits or those with children.
11. New Tenant Notice Periods: Tenants will need to give at least two months’ notice to vacate, although shorter four-week notice periods may be agreed upon by both parties.
12. Financial Penalties and Criminal Offences: The Bill introduces new penalties for landlords who unlawfully evict tenants or fail to follow rent increase rules. Fines could reach up to £40,000, and landlords could face criminal charges for breaching specific duties.
These changes aim to create fairer, safer, and more secure housing for tenants while holding landlords accountable. Stay informed as the Bill progresses to understand how it could affect you!
Henriques Griffiths solicitors have produced a concise summary of the provisions in the Bill, to download complete the form below.