The Renters Rights Bill is here, and it brings sweeping changes that will significantly affect landlords, letting agents and tenants alike. Whether you own or rent, these updates will impact your rights and responsibilities in the near future. Let’s break down the key differences from the previous Renters Reform Bill, which failed due to the snap General Election.
A new tenancy structure
Unlike the previous Government’s approach, this Bill will expedite the removal of Section 21 and shift all Assured Shorthold Tenancies (ASTs) to periodic assured tenancies in one go—no more delays or staggered implementation for new and existing tenancies. The exact date is yet to be confirmed.
Notice periods
Under the new rules, landlords must wait at least 12 months before ending a tenancy to sell the property or because they or a family member want to move in. Notice periods will also double from 2 to 4 months in such cases. Tenants, on the other hand, can give 2 months’ notice to end a tenancy and as long as it’s aligned with the rent date, there will be no restriction on when during the tenancy this notice can be given.
Limits on rent Increases
Labour has ruled out rent controls, but under the new Bill, landlords will only be allowed to raise rent once per year, up to the market rate, and must provide 2 months’ notice. Tenants can challenge any increases they feel are above market rates through the First-tier Tribunal and the Tribunal will be reformed to encourage use.
Students
Landlords renting HMOs to full-time students will be able to seek possession ahead of each new academic year, ensuring the continuity of short-term student tenancies. This new mandatory ground is a major change from the original Bill (although amendments were later introduced).
Deposits
In a departure from the proposals in the previous bill, landlords will need to demonstrate compliance with deposit protection rules for most new grounds of possession (as is currently the case with Section 21). This helps enforce tenant deposit protections across the board.
The Property Database
Landlords will be required to register on this database which is largely the same as the previous bill. However, there appears greater emphasis on its role in enabling tenants to enforce their rights and escalate complaints when necessary. The TDS Charitable Foundation’s Gateway service could help with this.
Penalties for illegal eviction
Landlords who illegally evict tenants will face civil penalties of up to £40,000, making it easier for local authorities to enforce penalties.
New Safety Standards and Awaabs Law
In addition to the introduction of the Decent Homes Standard, there are plans to introduce mandatory timeframes for landlords to respond to certain health hazards. The Government plans to consult on this.
Banning bidding wars
Landlords and agents will no longer be able to ask for or accept offers above the advertised rent, with fines of up to £7,000 for breaking this rule.
Rent Repayment orders
These will be strengthened by extending them to superior landlords, doubling the maximum penalty and ensuring repeat offenders have to repay the maximum amount.
NEXT STEPS
The Leader of the House of Commons, Lucy Powell MP, confirmed that the Second Reading and subsequent debate on the Renters’ Rights Bill will take place on Wednesday 9th October.
These changes are likely to have a significant impact on the rental market. Whether you’re a landlord, letting agent or a tenant, TDS will continue to provide you with information on how these rules will affect you.
