Renter’s Rights Bill: What You Need to Know – Updated
Updated: January 2025 January 2025 Update on the Renter’s Rights Bill The Renters’ Rights Bill is expected to become law in Spring 2025. Other parts of the Bill, such as the Decent Homes Standard is expected to be rolled out at a later stage, possibly in 2026. It’ll abolish Section 21 evictions and introduce a single system of periodic tenancies. The 3rd reading of the Commons stage concluded in January 2025. If there are few or no amendments tabled by the Peers in the House of Lords, then the bill will complete the Lords stage fairly quickly. The latest version of the bill includes: The Government made several amends in the 3rd reading, including: Source: News Agent The first reading of the Renter’s Rights Bills took place on 15 January. This stage is a formality that signals the start of the bill’s journey through the Lords. The second reading – the general debate on all aspects of the bill – is scheduled for 4 February. September 2024 Update on the Renter’s Rights Bill The Government have published plans to ban no-fault evictions and in-contract rent increases as it prepares to present the Renters’ Rights Bill (formerly Renter’s Reform Bill) to Parliament today (11th September 2024). It heralds one of the biggest changes in the sector in over 30 years. The Bill, as planned, will abolish Section 21 ‘no-fault’ evictions for new and existing tenancies as well as ending blanket bans for those on benefits or with children. The announcement clarified that the Bill will also extend Awaab’s Law into the private rented sector. How will this affect landlords? There are several ways in which the proposed Bill will affect landlords: August 2024 Update on the Renter’s Reform Bill The Labour government announced plans to reform rental property management in England, with a new Renters (Reform) Bill. Labour’s version of the Renters (Reform) Bill is a modified version of the Conservative’s Renters Reform Bill that didn’t pass through Parliament before the general election. This new legislation aims to enhance rights and protections for renters. What was the previous Renter’s Reform Bill? The Renter’s (Reform) Bill was a piece of legislation proposed by the government to transform the private rental sector and provide more security for tenants. It was introduced by Michael Gove, the former Secretary of State for Levelling Up, Housing and Communities. Some of the most prominent parts of the bill includes the banning of “no fault” Section 21 evictions, abolishing fixed term tenancies (ending periodic 6, 12 or 24 month contracts) and introducing new registration schemes for landlords. The bill caused a divided response from MPs, tenants and landlords and was debated through the House of Commons through various stages, with the third reading due to take place at the end of April 2024. However, with the General Election, it emerged on 24th May that the Renters (Reform) Bill would not pass before the 4th July. What does the Labour Renters (Reform) Bill say? The new Labour Bill will aim to: The Labour Renters (Reform) Bill currently has no timeline, and will likely undergo several reviews before becoming a full Bill. What should landlords do? Landlords should make every effort to stay informed about legislative updates and be prepared for new changes to come about. It’s important to understand your portfolio and ensure your tenancies are complaints. You might even consider speaking with an expert if you are uncertain. What did each political party say on the Renter’s Reform Bill during the Election? Labour Party Labour had previously shared they have doubts over the version of the Renter’s (Reform) Bill as introduced, and instead promised alternative plans. This still includes an end to Section 21 ‘no-fault’ evictions, the right for renters to have pets, to make reasonable alterations to a property, introduce a four-month notice period for landlords – and bring in an end to automatic evictions for rent arrears. The Labour Party manifesto said: “Labour will legislate where the Conservatives have failed, overhauling the regulation of the private rented sector. We will immediately abolish Section 21 ‘no fault’ evictions, prevent private renters being exploited and discriminated against, empower them to challenge unreasonable rent increases, and take steps to decisively raise standards, including extending ‘Awaab’s Law’ to the private sector.” The Labour Party’s stance is clear as they look to ‘overhaul the regulation of the private rented sector’. Even with the dissolving of the bill, Labour still remains committed to abolish Section 21. However, this would likely mean many of the original parts of the Renter’s (Reform) Bill will not pass through the Labour government. Conservative Party The Conservative Party Manifesto did include the Renter’s Reform Bill, stating the following: “We will pass a Renters Reform Bill that will deliver fairness in the rental market forlandlords and renters alike. We will deliver the court reforms necessary to fully abolish Section 21 and strengthen other grounds for landlords to evict private tenants guilty of anti-social behaviour.” They also pledged to strengthen grounds for landlords to evict private tenants guilty of anti-social behaviour, give more powers to councils to manage the ‘uncontrolled growth’ of holiday lets and introduce a two-year temporary Capital Gains Tax relief for landlords who sell to existing tenants. Liberal Democrats The Liberal Democrats promised “to deliver a fair deal for renters” by abolishing Section 21 immediately and reintroducing EPC C targets for rented properties. The Liberal Democrats manifesto states: “Liberal Democrats are committed to tackling these housing failures head-on by: [..] Delivering a fair deal for renters by immediately banning no-fault evictions, making three-year tenancies the default, and creating a national register of licensed landlords.” The party’s manifesto proposed making three-year tenancies the norm and creating a national register of licensed landlords. Their manifesto didn’t specifically address the Renter’s (Reform) Bill specifically, but the main ‘no-fault’ eviction plans remained. Reform Party Reform UK planned to abolish the Renter’s (Reform) Bill and instead released their own set of proposed policies to address the housing crisis. The Reform