
THE RENTERS’ RIGHTS BILL – THE NEXT STEP
The Renters' Rights Bill, introduced in September 2024, is a pivotal piece of legislation aimed at overhauling the private rented sector in England. As it approaches the committee stage set for the 22nd April 2025, it's essential to understand its key provisions, the journey so far, and the potential implications for both tenants and landlords.
Key Provisions of the Renters' Rights Bill
The bill seeks to address longstanding issues within the private rental market by introducing several significant reforms:
- Abolition of Section 21 'No-Fault' Evictions: This change aims to enhance security for tenants by preventing landlords from evicting tenants without providing a valid reason.
- Reform of Possession Grounds: While enhancing tenant security, the bill also revises possession grounds to ensure landlords can reclaim their properties when necessary, balancing the interests of both parties.
- Limitations on Rent Increases: Landlords will be restricted to increasing rent no more than once per year and must provide at least two months' notice. Tenants will have the right to challenge above-market rent hikes through the First-tier Tribunal.
- Prohibition of Rental Bidding: To promote fairness, landlords and letting agents will be required to set and adhere to an asking rent, eliminating practices that drive up rental prices through bidding wars.
- Right to Keep Pets: Tenants will have the right to request permission to keep pets, which landlords cannot unreasonably refuse. Landlords may require insurance to cover potential damages caused by pets.
- Ban on Discriminatory Practices: The bill makes it illegal for landlords to discriminate against tenants receiving benefits or those with children, promoting inclusivity in housing.
- Introduction of a Landlord Redress Scheme: All private landlords will be mandated to join an ombudsman service, providing tenants with a platform to resolve disputes without resorting to the courts.
- Establishment of a Private Rented Sector Database: A centralised database will be created to consolidate essential information for landlords, tenants, and local authorities, enhancing transparency and enforcement.
- Implementation of a Decent Homes Standard: The bill introduces a legal standard for property conditions, ensuring all rental homes are safe and meet specific criteria.
Legislative Progress and Debates
Since its introduction, the Renters' Rights Bill has undergone rigorous scrutiny:
- Second Reading: Held on October 9, 2024, the bill received broad support, with MPs highlighting the challenges faced by tenants and the necessity for reform. Concerns were raised about court capacities, the student accommodation sector, and local authority resources.
- Public Bill Committee: Between October and November 2024, the committee considered the bill over eight sittings, taking evidence from expert witnesses. The government introduced 40 amendments, primarily technical, while opposition MPs proposed 55 amendments, focusing on issues like fixed-term tenancies and rent controls; none were adopted.
- Report Stage and Third Reading: Scheduled for January 14, 2025, these stages will provide further opportunities for debate and potential amendments before the bill proceeds to the House of Lords.
Concerns and Considerations
While the bill aims to protect tenants, several concerns have been voiced:
- Landlord Perspectives: Some landlords fear the abolition of fixed-term tenancies could destabilise markets like student housing, where such agreements are standard. There's also apprehension about increased administrative burdens and potential impacts on housing supply.
- Tenant Awareness: A recent survey indicated that only one in three private renters are aware of the proposed bill, and just one in four understand its potential impact. This highlights the need for effective communication to ensure tenants are informed about their evolving rights.