Renters Right

Renters' Rights Bill - Butler Sherborn’s Synopsis

12 September 2024
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Vanessa Carter
By Vanessa Carter

Senior Associate Partner, Head of Residential Lettings

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Since the Conservative Government shelved the Renters (Reform) Bill earlier this year, there has been speculation and rumour that the new Labour Government will resurrect the proposed legislation and make further reforms to tighten up the private rental sector.

Speculation has now ended as Labour introduced to parliament their plan for the future of the industry, now called ‘The Renters' Rights Bill’.

The Bill contains many of the measures debated in the ‘Renters Reform Bill’, however, differing from the Conservative plans, Labour have introduced 80 additional clauses to the Bill, to further strengthen and transform the experience of private renting in England.

The exact shape of how the legislation will look is still to be finalised, through The Bill’s passage through parliament, however details published by the government confirm the basis of what the Bill will include;

  • A new mandatory Ombudsman for all landlords
  • A mandatory private rental sector database of landlords
  • Strict controls on rent bidding and offers during marketing a property for a tenant
  • Removal of fixed term tenancies, creating rolling tenancies from the outset
  • A 12 month protected tenancy period for tenants
  • A ban from discriminating against tenants on benefits, or with children
  • Tenants given strengthened rights for having a pet in a rented property
  • Strict controls on rent reviews and a ban on in-tenancy rent review clauses
  • Removal of the ‘no fault’ Section 21 Notice Requiring Possession, for all tenancies
  • Stricter possession grounds for landlords, with longer notice periods
  • A new possession ground for Landlords renting to students
  • The Decent Homes Standard to be applied to the private rental sector
  • The application of ‘Awaab’s Law’ to the private rental sector
  • Strengthening of local authority enforcement powers and expanding civil penalties
  • An expansion of Rent Repayment Orders

From Government statistics, there are 2.3 million landlords in England and approximately 11 million renters. In making these proposed changes, the new system will give renters greater stability in knowing that they can make a rented property their ‘home’ for longer. Furthermore, good landlords, providing quality homes, will benefit from tighter possession grounds, where there is a valid reason for requiring a rented property back into their possession.

Full details of The Bill, in its current form, can be found at;

www.gov.uk/government/publications/guide-to-the-renters-rights-bill

The Government made a promise to push rental reforms through quickly and as such the second reading of The Bill is to be held around the 9th October 2024.The remainder of the process in the House of Commons, then House of Lords, will follow in the coming months. With rental reforms having support from all parties, it is being reported that the law could potentially pass by spring 2025 and implemented before summer 2025.

Professional bodies, including Propertymark and the National Association of Estate Agents, are working closely with the government and will be lobbying MPs and members of the House of Lords, to help shape the legislation in the best way possible for landlords and tenants.

Butler Sherborn will be following the progression of The Bill through parliament and publishing updates as and when we have them.

If you wish to discuss any issues arising from these proposals, do contact me, Vanessa Carter 01993 822325 vanessa@butlersherborn.co.uk

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