What You Need to Know About the Renters’ Rights Bill: A Guide for Landlords and Tenants

The Renters' Rights Bill, presented to the UK Parliament on 11^th September 2024, seeks to transform the private rental sector by offering enhanced protections for tenants and promoting a fairer balance between renters and landlords. As of today, the bill is advancing through parliament with the government aiming for it to become law by late 2025. Whether you're a landlord or a tenant, understanding how this legislation impacts you is essential. Below is an overview of what both parties need to know.

Key Provisions for Tenants

1. End of "No-Fault" Evictions: One of the most significant changes introduced by the Renters' Rights Bill is the ban on "no-fault" evictions, previously permitted under Section 21 of the Housing Act 1988. This meant landlords could evict tenants without a specific reason, often leaving tenants vulnerable to sudden relocation. Under the new proposals, landlords will need to provide a valid reason to evict tenants, such as rent arrears, antisocial behaviour, breach of contract, or if the landlord wishes to sell or live in the property themselves. This move offers tenants greater security and stability.
2. Improved Security of Tenure: The Bill aims to provide tenants with longer, more secure tenancies. While the government has proposed a new model of tenancy where tenants will no longer be locked into long fixed-term contracts, they will instead have the flexibility of a rolling contract. Tenants will also have the right to stay in a property for as long as they wish, providing one of the specific grounds for possession has not been met.
3. Rent Control and Transparency: The Bill introduces measures to make rental prices more transparent. Local councils may gain the power to impose rent caps in areas where the cost of renting has become excessive. Additionally, landlords will be required to justify any rent increases, providing tenants with clarity on how and when their rent might rise.
4. Improved Standards and Maintenance: The proposals strengthen the duty of landlords to maintain properties to a higher standard. Tenants will have clear channels to report maintenance issues, and landlords will be required to respond to repair requests more swiftly. If a landlord fails to meet these obligations, tenants will be able to escalate the issue, potentially involving the local authority.

Key Provisions for Landlords

1. Clearer Grounds for Eviction: While the Renters' Rights Bill restricts "no-fault" evictions, landlords can still evict tenants for specific reasons, including failure to pay rent, property damage, or disruptive behaviour. The Bill ensures that landlords have a clear and legally supported process to regain possession of their property if a tenant breaches the terms of their agreement.
2. Rent Increases and Regulation: Landlords will face new limits on rent increases. Although they will still be able to raise rent, they will need to follow a clear process that includes providing notice and justifying the increase. This ensures tenants are not subjected to sudden, excessive rent hikes. For landlords, this means adhering to a set process to avoid disputes over rent levels and terms.
3. Property Standards and Maintenance Obligations: The Bill places an emphasis on ensuring properties are well-maintained and in good condition. Landlords must comply with new standards, making necessary repairs and addressing tenants' complaints in a timely manner. This might lead to higher maintenance costs for landlords, but it also offers a clear framework for managing property and handling disputes.
4. Enhanced Dispute Resolution: The Bill introduces an accessible dispute resolution service for both parties. The aim is to resolve conflicts quickly and without the need for court proceedings, potentially reducing the strain on the legal system. Landlords and tenants will both benefit from a more streamlined and efficient process to address issues such as maintenance requests, rent disputes, or evictions.

Final Thoughts: A New Balance for Landlords and Tenants

The Renters' Rights Bill represents a significant shift in the relationship between landlords and tenants. For tenants, it offers increased security, protection from subjective evictions, and clearer guidelines on rent increases and property conditions. For landlords, it provides a more structured legal framework for managing tenancies and evictions, while also ensuring that properties are well-maintained and meet a higher standard.

Both parties must adapt to the new legal landscape, ensuring they understand their rights and responsibilities.

For further guidance on the above, please contact our team on: 01768 866611