On 11th September 2024, the new labour Government published the Renters’ Rights Bill (the Bill), with the aim of making renting fairer for tenants, protecting good landlords and holding bad landlords to higher standards. At this stage, the Bill has only been proposed, it is yet to come into force so the opportunity for amendments to be made remains.
Once the Bill becomes law, the changes will apply to both new and existing tenancies. If there are no major delays, the Bill is likely to become law in the first half of 2025, however some measures in the Bill could be introduced sooner.
Key points of change from the Renters’ Rights Bill
One of the key changes that the Bill proposes is removing the option for a Section 21 notice seeking possession. Section 21 allows for a no-fault eviction by a landlord, and it has been proposed that this should no longer be an available option, providing stronger protection to tenants against eviction. Another key change that has been proposed is that all tenancies will become periodic, rather than fixed with each period being no more than a month. This will be on a rolling basis and tenants can serve two months’ notice, from day one, to end the tenancy at any time. The threshold is higher for landlords with the need to serve tenants with four months’ notice and only after they have been there for a 12-month period. Also proposed are restrictions on reviewing rent and limiting rent increases.
The Bill also proposes a ban on discriminating against tenants with children or on benefits, the right to keep pets, and the introduction of the Decent Homes Standard and Awaab’s Law. New grounds are proposed where a landlord needs to sell or move into the property, a new mandatory Ombudsman scheme for all landlords has been proposed along with a mandatory private rental sector database of all landlords.
How do I gain possession under the new Bill?
Currently, the Bill has only been proposed, so there is still chance for amendments to be made before it becomes law. Under the propositions, landlords must have an eye for detail within every aspect of the tenancy. Not doing so risks the claim for possession being delayed, or in the worst case, refused. Where a landlord is looking to regain possession, they will have to look towards a Section 8 notice and provide a reason for eviction, usually with substantial evidence with the burden of proof falling on them.
Specifically in relation to rent arrears, under the new Bill there must be 13 weeks of arrears before a landlord can serve notice. It has been implied that if the tenant pays off some of their arrears during that time, the clock will restart, and the landlord will have to wait a further 13 weeks before being able to serve notice. This could become frustrating for landlords and is likely going to be a point of discussion in passage through Parliament.
What is the impact of these changes?
The aim is to make renting a better experience for tenants and to create a more equal balance between tenant and landlord. The changes will make it more difficult for landlords to evict tenants and will require landlords to be more stringent in checks and agreements.
Given the Bill will apply to both new and existing tenancies, landlords will need to remain aware of what is happening and keep up to date of what changes are made to the Bill and when it is brought into law. Gaining possession is likely to become harder and landlords will need support with this.
Our specialist Dispute Resolution Team can assist landlords with repossession of properties both now under the current rules and in the future once any changes are made law. Please contact us for more information.
