Renters’ Rights Bill 2024: Key Changes You Need To Know

On September 11, 2024, the UK House of Commons held its first reading of the Renters’ Rights Bill 2024 (the Bill). Building on the previous Renters (Reform) Bill 2023 introduced by the last UK government, this Bill could reshape the landscape for England’s build-to-rent and private-rented sectors if it passes into law. Here’s a breakdown of the Bill’s proposed changes and how they may impact landlords and tenants alike.

Current eviction laws: How landlords can evict tenants today

Under current law, a private Landlord can evict a Tenant through what is commonly called a “no-fault” eviction. Section 21 of the Housing Act 1988 allows a Landlord to initiate eviction proceedings with a simple two-month notice, without needing to provide any specific reason. If the Tenant does not leave voluntarily, the Landlord must go to court to enforce the eviction, often resulting in court-ordered bailiffs executing the eviction.

Landlords can also use Section 8 grounds to evict Tenants under specific legal circumstances, such as rent arrears. In such cases, a Landlord must provide evidence in court that a valid ground for eviction exists.

During the last Conservative government, a proposal was made to ban “no-fault” evictions. However, time constraints and party concerns over the potential for increased court backlogs stalled the reform’s progress before the July election.

What the Renters’ Rights Bill 2024 proposes

Here are the major reforms the Renters’ Rights Bill 2024 could bring if passed:

1. Abolition of Section 21 evictions

Perhaps the most significant change, the Bill proposes abolishing Section 21 evictions, further protecting Tenants from “no-fault” evictions. If this change is enacted, Landlords will only be able to end tenancies in specified legal circumstances, such as a Tenant’s misconduct or a Landlord’s intent to sell the property.

This reform aims to provide Tenants with more stability and enable them to contest unfair practices without fear of eviction. For Landlords, the Bill outlines clearer, streamlined regulations and expanded grounds for possession, aiming to balance the interests of both parties.

2. Extending Awaab’s Law

The tragic 2020 case of two-year-old Awaab Ishak, who passed away due to prolonged mould exposure in social housing, led the government to create new obligations on mould and damp removal for social housing providers through the Social Housing (Regulation) Act 2023. The Renters’ Rights Bill 2024 would extend these requirements to private Landlords, establishing stricter timelines for addressing serious hazards. If Landlords fail to comply, Tenants will have the right to seek enforcement through the courts.

3. Equitable possession grounds for Landlords and Tenants

The Bill also revises the grounds for possession to ensure fairness to both Tenants and Landlords, with varying notice periods depending on the situation:

• Landlord intention to sell or occupy: Grounds 1 and 2 require Landlords to give Tenants at least four months’ notice if they intend to sell the property or move in themselves.
• Significant rent arrears: Ground 8 applies if a Tenant owes at least three months’ rent both at notice and hearing times, with a required four-week notice period.
• Tenant misrepresentation: Ground 4 would allow Landlords to give two weeks’ notice if the tenancy was obtained through a knowingly false Tenant statement.
• Serious criminal convictions or anti-social behaviour: Under Ground 7A, a Landlord could initiate possession proceedings immediately if the Tenant is convicted of a serious crime or violates an anti-social behaviour order.

Other key reforms in the Bill

Additional proposed changes include:

• Elimination of fixed-term and assured shorthold tenancies: Tenancies will become open-ended, giving Tenants more security.
• Controlled rent increases: Rent can only be increased once annually through a Section 13 notice.
• Ban on rental bidding wars: The Bill seeks to prevent Landlords and agents from encouraging Tenants to outbid each other above the listed rent price.
• Anti-discrimination provisions: It will become illegal for Landlords to discriminate against tenants receiving benefits or those with children.
• Tenant right to request pets: Tenants would gain the legal right to request permission for pets.
• New Landlord Ombudsman requirement: All Landlords will be required to join a compulsory Ombudsman scheme, providing an additional layer of Tenant support.

When will this impact you?

The Renters’ Rights Bill 2024 is set to affect both new and existing tenancies, meaning Section 21 notices will no longer apply, regardless of whether the tenancy agreement predates the Bill. While the Bill is expected to pass into law by mid-2025, Landlords are encouraged to prepare by reviewing and adjusting practices now.

It is important to remember, however, that this Bill is in the early stages of the legislative process. Parliamentary scrutiny could lead to significant changes, just as the Renters (Reform) Bill 2023 faced amendments and delays. There may be adjustments, revisions, or even further expansions to the proposals as debates continue. If passed as currently proposed, this Bill represents a major shift in housing policy, favouring stronger tenant protections than its predecessors.

As the Bill progresses, Landlords should monitor developments closely to ensure compliance and stay informed on evolving responsibilities.

Need help navigating the Renters’ Rights Bill 2024?

If you have questions or require assistance with the potential impact of the Renters’ Rights Bill, our Property Litigation team is available to help.

For additional information, you can also find:

• A copy of the government’s Renters’ Rights Bill here: https://publications.parliament.uk/pa/bills/cbill/59-01/0008/240008.pdf
• A detailed guide to the proposals in the Bill here: https://www.gov.uk/government/publications/guide-to-the-renters-rights-bill/82ffc7fb-64b0-4af5-a72e-c24701a5f12a#enforcement-and-investigatory-powers

Image Credit