New legislation aimed at banning no-fault evictions and enhancing tenants’ rights has been introduced to Parliament. This move is part of the Renters’ Rights Bill, designed to eliminate problematic landlords and improve renting conditions.
The bill proposes several key changes, including prohibiting landlords from refusing tenants the right to keep pets, eliminating no-fault evictions, and requiring landlords to promptly address safety hazards in rental properties.
Housing and Planning Minister Matthew Pennycook emphasised the need for a complete overhaul of private rental sector regulations. He stated to ITV News that the changes are “long overdue” and crucial for tenant protection.
The proposed legislation will need to be approved by MPs and peers, who may suggest additional modifications before it can become law.
Banning ‘No-Fault’ Evictions
The proposal to ban “no-fault” Section 21 evictions, initially introduced by the Conservatives, faced delays due to concerns about its effects on landlords and the court system.
The Conservatives’ Renters (Reform) Bill did not advance through Parliament before the July election.
Under the new proposals, landlords will no longer be able to evict tenants without providing a valid reason. Instead, a court will have the final say on whether the landlord’s reason is legally acceptable.
Extending Awaab’s Law
Awaab’s Law, named after a toddler who died from mould exposure in his family’s social rented home in Rochdale, is set to be extended. This extension will include the private rented sector, aiming to ensure that all renters in England can address dangerous conditions in their homes.
The new measures will empower tenants to challenge issues like black mould, providing greater protection and improving living standards across all types of rental properties.
Allowing pets
The Renters’ Rights Bill will grant tenants the right to request permission to keep a pet in their rental property. Landlords will be required to consider these requests and cannot refuse them without a valid reason.
However, landlords may not have the final say in some cases. For instance, in apartment blocks, the rules set by leaseholders or housing associations could impact the decision. If a landlord agrees to a tenant keeping a pet, they may require the tenant to obtain pet insurance.
Banning ‘bidding wars’
The reforms will require landlords and letting agents to clearly state the rent for a property. This measure aims to address the issue of rental bidding wars, where potential tenants are forced to compete with offers above the advertised rent.
Under the new rules, landlords and letting agents must list a fixed asking rent for their properties and will be prohibited from soliciting bids above this amount. This move is intended to eliminate the practice of tenants bidding for rental properties.
Ending the blanket ban on renting to benefit claimants and families
The bill aims to ban landlords from refusing tenants based on their receipt of benefits or having children. This change addresses long-standing calls from campaigners for more inclusive rental practices.
Drive to increase standards
For the first time, a Decent Homes Standard will be introduced for the private rented sector. This move comes as a response to the significant issue of housing quality; currently, 21% of privately rented homes are classified as “non-decent.” Additionally, more than 500,000 of these properties are reported to contain serious hazards that pose risks to tenants’ health and safety.
The government argues that implementing these standards will benefit landlords who maintain good quality homes by providing clear regulations. This approach aims to address longstanding issues with landlords who have previously managed to rent out substandard properties without facing consequences. By setting these new standards, the government hopes to ensure a fairer market and improve living conditions for tenants.
Rent hikes
The bill will eliminate arbitrary rent review clauses in tenancy agreements. From now on, landlords will be restricted to increasing rent only once per year, and any increase must be aligned with the current market rate.
New private rented sector database
A new database for the private rented sector will be established to clarify landlords’ responsibilities, help tenants make informed decisions, and enhance enforcement by councils. This database will also allow councils to focus their enforcement efforts on areas where they are most needed.
Councils will have more powers
Councils will receive increased authority to address issues with problematic landlords, aiming to eliminate the worst offenders in the sector. Fines for serious violations will be raised, and enhanced enforcement powers will support local authorities in addressing substandard housing conditions for tenants.
When will the reforms take effect?
The bill is still in the early stages and has a long process ahead before it becomes law. Introduced to Parliament on September 11, it will next go through the House of Lords and could face challenges and amendments.
Deputy Prime Minister Angela Rayner stated, “Renters have been let down for too long, often living in poor conditions due to the fear of retaliatory evictions. While most landlords are responsible, a few unscrupulous ones are damaging the sector’s reputation by exploiting the housing crisis and forcing tenants into bidding wars. It’s time for change. This Bill aims to reform the rental sector and improve the balance between tenants and landlords, and the government is committed to protecting tenants.”
‘A fresh start’ to fix private renting
In response to the bill’s introduction, Polly Neate, Chief Executive of Shelter, stated that section 21 evictions have troubled renters in England for years, and the new bill will bring relief to the 11 million renters affected.
She further remarked, “The Renters’ Rights Bill should mark a new beginning for improving private renting. With short notice periods and over 60,000 renters displaced by rent increases in the past year, there is a clear demand for decisive action to ensure the security renters have been promised. The Bill must provide stronger protections, prevent drastic rent hikes, and eliminate discriminatory practices that lead to homelessness.”
What do landlords think?
Ben Beadle, chief executive of the National Residential Landlords Association (NRLA), has emphasised that both landlords and renters need clarity and fairness in reforms. He noted that the end of section 21 evictions marks the most significant change in the sector in over 30 years and that adequate time will be required for the sector to adjust.
Beadle pointed out that updating tenancy agreements for over 4.5 million households, training letting agents and landlords, and adjusting policies by insurance and mortgage providers will be a lengthy process. He stressed the need for government guidance and warned that removing section 21 could overwhelm the courts with possession claims unless reforms expedite the legal process.
The NRLA supports improving rental standards but insists that robust enforcement by councils is crucial. A Conservative spokesperson commented that while they support choice and freedom in housing, new regulations must be necessary and proportional. They expressed concerns that poorly drafted laws, as seen in Scotland, could reduce housing supply, increase rents, and limit options for renters. They await further details on Labour’s proposals.
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