4th December 2024 | Caroline Vernon | residential real estate, conveyancing, Tenants

The new Renter's Rights Bill (“RRB”) has been introduced by the new Labour Government to improve the private rental sector providing greater stability for tenants. This landmark legislation aims to provide greater tenant protection, end unfair evictions and establish clearer rules for landlords.

What is the Renter’s Rights Bill?

The RRB is a proposed law designed to improve stability for tenants in the private rental market. It introduces several significant changes that landlords and tenants should be aware of.

Key changes in the Renter’s Rights Bill

1 – Removal of section 21 evictions and fixed term tenancies

The RRB will abolish the ability, for both existing and new tenancies, to evict a tenant on a “no-fault” basis by serving a notice under section 21 of the Housing Act 1988 (“HA”). Landlord’s will have to provide a reason to be able to evict a tenant in future.

Assured shorthold tenancies (ASTs) will be abolished and will be replaced by tenancies that are periodic i.e. month to month so that tenants will be able to stay in a residential property until they decide to end the tenancy by giving two months’ notice (aside from where a landlord seeks to evict them under one of the remaining grounds under section 8, HA 1988).

2 – Changes to Remaining Grounds for Possession

To evict a tenant and obtain possession landlords will need to rely on mandatory and discretionary grounds.  A judge must award a landlord possession where they can evidence a mandatory ground, whilst discretionary grounds allow a judge to consider whether it is reasonable to award possession.

Ground 1 – where a landlord wishes to evict a tenant if they wish to move into their rented property or if they wish to move a family member into their property remains.

  • Notice period extended from 2 to 4 months.
  • Not available in the first 12 months of a tenancy.
  • Restrictions on re-letting the property within 12 months.

Ground 1A – a new mandatory ground has been introduced to allow a landlord to evict a tenant if they wish to sell a property (or let it for more than 21 years).

  • Requires 4 months’ notice and is unavailable in the first 12 months.
  • Restrictions on re-letting apply.

Ground 6 – a landlord may evict a tenant where they wish to demolish or substantially redevelop the property, and this cannot be done whilst the tenant is living there, the notice required is extended from 2 to 4 months.

Ground 8 – where there are rent arrears and the landlord wishes to evict the tenant, there must now be 3 months of arrears, and the notice period required is increased from 2 to 4 weeks.

3 – Rent Increases

Rents can only be raised once a year and on two months’ notice to a tenant using the existing section 13, HA 1988 procedure.  At present tenants can challenge rent increases via the first-tier tribunal (FTT). However, the RRB will give the FTT the power to determine rent.

4 – Ombudsman and Database for landlords

All private rented sector landlords will be required to register with a new independent Private Rented Sector Landlord Ombudsman.

Tenants will be able to make complaints to the Ombudsman who will be able to make binding decision which will be enforceable through both civil penalties and criminal prosecution. The Ombudsman is intended to support quicker and cheaper dispute resolution outside the court process.

A Private Rented Sector Database will also be introduced, in which landlords of assured and regulated (under the Rent Act 1977) tenancies will also be legally required to register. Landlords who fail to register on the Database may be subject to enforcement action and will not be able to get a possession order to evict a tenant.

How Will the Renter’s Rights Bill Affect You?

For Tenants:

  • More security: You cannot be evicted without a valid reason.
  • Predictable rent increases: Limited to once a year and subject to challenges.
  • Access to quick dispute resolution: File complaints through the Ombudsman instead of lengthy court processes.

For Landlords:

  • Stricter eviction rules: Ensure compliance with the new grounds and notice periods.
  • Obligatory registration: Failure to register may lead to penalties and restrictions.
  • Portfolio review needed: Consider acting on rent arrears, properties requiring possession, or planned rental increases before the Bill becomes law.

 

When Will the Renter’s Rights Bill Become Law?

The RRB is currently at the Committee stage in the House of Commons and is expected to become law by summer 2025.

By reforming tenant rights and establishing stricter landlord responsibilities, the Renter’s Rights Bill 2024 could significantly impact the UK rental market. Whether you’re a landlord or tenant, staying informed will help you adapt to these changes.

Want to find out more, contact Caroline or check out our Residential Conveyancing page. 

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