Renters Rights Bill

Hot on the heels of the Renters (Reform) Bill introduced by the previous Conservative Government, the new Labour Government has introduced The Renters Rights Bill (“RRB”). The RRB will significantly change the residential rental landscape in England through a series of key reforms.

Abolition of section 21 ‘no fault’ evictions and fixed term tenancies

The RRB will remove the ability to evict a tenant of a residential tenancy by serving a ‘no fault’ notice under section 21 of the Housing Act 1988. 

The RRB will also abolish and prohibit assured shorthold tenancies and fixed-term assured tenancies of less than 7 years. These will be replaced with periodic assured tenancies.

The combined effect of this is that a residential tenancy will only come to an end if a tenant gives two months’ notice, or if the landlord seeks to evict the tenant under one of the grounds for possession under Section 8 of the Housing Act 1988.

Changes to the Grounds for Possession

A notice seeking possession under Section 8 of the Housing Act 1988 must cite grounds for possession. The Renters (Reform) Bill already made changes to these grounds (see our previous article here). The RRB introduces new grounds and makes further changes to the existing ones:

• Ground 1 – Eviction due to occupation by landlord or family. This existing ground is amended to require the landlord to give 4 months’ notice rather than 2 months. Landlords are also prevented from using this during the first 12 months of the tenancy and they will not be permitted to re-let the property for 12 months from the date of the notice.
• Ground 1A – Eviction due to sale of the property (or due to the property being let for more than 21 years). This is a new ground for eviction requiring the landlord to give 4 months’ notice.  Landlords are prevented from using this during the first 12 months of the tenancy and will not be permitted to re-let the property for 12 months from the date of the notice.
• Ground 6 – Eviction due to demolition or substantially redevelopment of property. This existing ground is amended to require the landlord to give 4 months’ notice rather than 2 months. 
• Ground 8 – Eviction due to rent arrears. This existing ground is amended to require the landlord to give 4 weeks’ notice rather than 2 weeks. The level of rent arrears is also required to be 3 months rather than 2 months.

Rental Bidding

The RRB will require landlords and letting agents to publish an asking rent for a tenancy. It will also prohibit them from asking for, encouraging, or accepting any bids above this price.

Rent Increases

Rent increases will only be able to occur once a year at two months’ notice through the existing Section 13 Housing Act 1988 procedure.

Currently, if a tenant challenges a rent increase, they must prove it is “excessive”, and even risk that the Tribunal determines that the rent should be higher than the rent initially proposed by the landlord. The new rules will state that the Tribunal will always determine the rent to be the lower of: (1) the rent proposed by the landlord, or (2) the market rent. The Tribunal will also have the ability to determine the validity of the landlord’s rent increase notice.

Private Rented Sector Landlord Ombudsman

The RRB will introduce a new Private Rented Sector Landlord Ombudsman Service, which all private landlords in England with assured or regulated tenancies will be required by law to join. The service will be free and allow tenants to complain about a landlords’ actions or behaviours.

Landlords will be required to comply with ombudsman decisions. Failure to comply may result in a landlord being expelled from the scheme and subsequent local council enforcement action via civil penalties and criminal prosecution.

Private Rented Sector Database

The RRB will also introduce a new Private Rented Sector Database. All landlords of assured and regulated tenancies will be legally required to register themselves and their properties on the database.

Landlords may be subject to penalties if they market or let out a property without registering it and providing the required information. For tenants, the database will increase transparency and the information available before they decide to rent a property.

Next Steps

The RRB is still going through Parliament; there will be amendments to the Bill and its final form will differ from the draft text. However, given the majority of the current Labour Government and the fact that tenancy reform was a manifesto commitment, it is likely that these major changes will occur. It is anticipated that these reforms could be in place as early as summer 2025.

How Pinney Talfourd can help?

Pinney Talfourd are experts in commercial and Residential Property Litigation and can advise you on changes to the law so you are given up to date advice.

Please do not hesitate to contact either Oliver-James Topping on 01708 463227 should you wish to discuss anything further.