Renters’ Rights Bill – What Do You Need to Know?

Following the election in July, the Renters’ Rights Bill has been a main objective for the new Labour Government, being in their election manifesto. Their aim is to give greater rights to private renters, balancing the power between landlords and tenants; this includes the ‘abolishment’ of Section 21 notices.

It is now time for landlords and their Agents to listen, as the Renters’ Rights Bill had its first reading in the House of Commons on the 11^th September 2024, representing the first formal stage of its journey to becoming law. 

The Bill itself covers numerous changes from current legislation, including the abolishment of the existing Section 21 notice (S21) that allows landlords to regain possession of their property without reasoning – often referred to as the ‘no fault eviction’.  Matthew Pennycook, Housing Minister, has suggested that the S21 ban will be in place by summer 2025, leaving only a small notice period for the commencement of the new laws. Currently, there is no suggested transitional period for existing fixed term or periodic Assured Shorthold Tenancy (AST’s), which means the tenant has more security, albeit with a potentially longer notice period to give of 2 months, but landlords will need to refer to the new and reformed Grounds for Possession. 

Such grounds introduced or updated by the Bill include Ground 1, where the landlord requires the property back as their main accommodation or for their family.  This can only be used if the tenancy is more than 12 months old and will have a 4 month notice period. Ground 1A, where the landlord intends to sell the property, again can only be used if the tenancy is more than 12 months old and has a 4 month notice period.  There will also be restrictions in place to prevent the re-letting or re-marketing of the property for 12 months following the service of a possession notice on the above grounds. Fines of up to £7,000 are suggested for non-compliance. Further changes include Ground 8 which covers rent arrears. The amount of rent arrears is to be increased from 2 months to 3 months, and the notice period for Ground 8 is currently 2 weeks but is being extended to 4 weeks.

Other provisions of the Bill include no more fixed term tenancies or shorthold tenancies; the inability to accept a higher rent than the one advertised, even if it is offered by the prospective tenant and landlords will not be able to unreasonably withhold consent to a request for a pet.

These are just some of the provisions made and we will continue to follow the Bill as it progresses through Parliament and continue to provide updates over the coming months. For landlords and their Agents, even with the information provided by the Renters Reform Bill, it is still a time of uncertainty around how the market will respond to the Bill, particularly as we wait to see how these changes are to work once in place. 

However, if you have any concerns or would like further advice regarding an existing tenancy or a potential future letting then please do get in touch with our Lettings Team.