Renters’ Rights Bill published

After many years of discussion and the passing by of the Renters (Reform) Bill, which ceased to progress once the general election was called, the Ministry of Housing, Communities and Local Government have started work to tackle rental reform early in the new parliament. As a result, the much awaited Renters' Rights Bill has now been published, with the intention that most key reforms will be in place from Summer 2025. The Government, in guidance to the Bill, have suggested that these reforms look to deliver on their commitment to “transform the experience of private renting”

Much of the new Bill shadows the former Bill, particularly in structure. However, there are significant departures and advancements on the previous iteration. This article looks to summarise the significant headlines of the Bill and will be followed with a series of more in-depth assessments of key provisions, as we move towards enactment.

Key provisions

• End fixed term Assured tenancies and abolish section 21 evictions: The Bill looks to introduce “a transformative new tenancy system, ending the threat of arbitrary section 21 evictions”. The move looks to see all assured tenancies become periodic with a term of no longer than one month.

In a significant departure from the previous Bill, there will be no transitional period for these changes and they are expected to be introduced by regulations shortly after Royal Assent. The guidance suggests that there may be some delay on the roll out in respect of private registered providers of social housing and there will be consultation with the Regulator of Social Housing in that respect. The guidance to the Bill states:

“We remain committed to abolition of section 21 in the social rented sector too. While our intention is to do this as quickly as possible, we consider it necessary to update our Direction to the Regulator of Social Housing so that they can update their Tenancy Standard. This will ensure it is clear what registered providers must do under the new system. As this requires a statutory consultation process, we will apply the new system to social tenancies (where the landlord is a private registered provider of social housing) at a later date”

• New Grounds for possession: The Bill sets out new grounds for possession and amendment to current grounds, giving landlord’s some flexibility in the management of their properties  Ground 8 of schedule 2 of the Housing Act 1988 will be amended to increase the level of arrears to access this mandatory ground to the equivalent of 3 months’ rent.

New grounds will also be included to assist supported housing providers, who often need flexibility in the management of their accommodation in order to support move-on and tackle non engagement. Notice periods will also be amended in respect of cases involving anti-social behaviour.

• Tenant Pets: Tenants will be given permission to keep pets which the landlord must consider and cannot unreasonably refuse.

• Introducing a Private Rented Sector Database: All landlords will be required to register to a Private Rented Sector Database which will be policed by Local Authority enforcement teams. The enforcement teams will also be given access to greater civil penalties, including civil penalties for illegal eviction.

• No lease of longer than 7 years term can be an assured tenancy: This will see most shared ownership leases no longer be viewed as assured shorthold tenancies. This will come in to effect 2 months after the Bill receives Royal Assent.

• The Decent Homes Standard will apply to the private rented sector: It is hoped that this will give renters safer and better quality homes

• ‘Awaab’s Law’ will also apply to the private rented sector: This will require private landlords to “make homes safe where they contain serious hazards”

• Private student accommodation and University Accommodation will be exempt from the Bill: they will be contractual tenancies or licences and not bound by the Bill.

Court Reform

It has often been suggested that court reform would be vital in order for possession proceedings to be managed without the accelerated possession route being available, which will fall away when s21 is abolished. The guidance to the Bill suggests that this has been considered and it is therefore not anticipated that this will create any delay to the commencement of a new Act. The guidance suggests:

“Ultimately, we expect our rental reforms to reduce demand on the courts because only cases where there is a clear, well-evidenced ground for possession will be able to proceed.

We want to ensure that wherever possible court action is the last resort. The Renters’ Rights Bill makes provision for the ombudsman to provide landlord-initiated mediation, enabling disputes to be resolved before they escalate to court. We are working with the Ministry of Justice to explore further options for early dispute resolution.

The Ministry of Housing, Communities and Local Government is working with the Judiciary, the Ministry of Justice and HM Courts and Tribunals Service to ensure that the county court is prepared for the changes to the tenancy system. We will continue to work towards digitising the possession process so that, when court action is required, it is more efficient and easier for landlords and tenants to understand”.

What next?

The Bill will soon move to a second reading and we will update further on its progress. Our series of articles over the coming months will add detail to this summary, diving deeper in to the detail and considering some of the potential challenges that might be encountered when the Bill in enacted.

If you would like to discuss the new Bill further, please contact Kate Hicks or Sarah Orchard