The Renters' Rights Bill, now published, marks a significant milestone in the Labour Party’s pledge to overhaul the rental market, following the collapse of the Conservative government's Renters Reform Bill. Once enacted, it will be known as the Renters' Rights Act 2024 and aims to bring long-discussed reforms into law, many of which have languished in legislative limbo for years. Labour's commitment to improving tenants' rights comes as part of their manifesto, and this bill is poised to deliver real change in the rental sector.

Key Provisions in the Bill

A central provision of the bill is a ban on landlords serving Section 21 notices (no-fault evictions). While the previous bill proposed this reform, it was delayed pending a review of the county court system’s capacity to handle Section 8 cases, where a judge must rule on possession claims. Labour's Matthew Pennycook has assured that the government will work with the courts to ensure they are fully prepared for the extra workload once the new law is in place.

However, the bill makes transitional arrangements for tenancies where a Section 21 notice has been validly served before the law comes into effect. In such cases, tenancies will remain as assured shorthold tenancies until the relevant proceedings are concluded or the notice expires.

A notable change is the abolition of fixed-term tenancies, which will be replaced by a single system of periodic tenancies. This means landlords and tenants will no longer be able to agree on fixed terms, even if both parties prefer it. Rent periods will default to monthly payments, and any attempt to specify a longer rent period will be void.

Landlords of flats in blocks will have their leases automatically adjusted to allow sub-letting under the new system, ensuring compliance with insurance policies and head leases.

Rent Regulation and Tenant Protections

The bill strengthens tenants' rights to challenge rent increases under Section 13 of the Housing Act 1988. Tenants can now contest rent increases they believe are excessive, including rents agreed at the beginning of the tenancy. However, challenges must be raised within six months of the tenancy starting, or the right to contest will be lost. The tribunal assessing the claim will determine the open market rent and can delay rent increases by up to two months if the tenant demonstrates financial hardship.

As for notice periods, tenants will have the right to give notice from the first day of their tenancy, provided they give at least two months' notice. If rent is paid in advance, the tenant is entitled to a refund for any period beyond the tenancy end date.

Regarding pets, landlords cannot unreasonably refuse requests from tenants to keep a pet, though they are allowed to ask for more details about the animal. Refusals are considered reasonable if allowing pets would breach the terms of a superior landlord's lease. Additionally, the Tenant Fees Act will be amended to permit landlords to request extra deposits or insurance to cover potential damage caused by pets.

Landlord Obligations

Landlords will be required to provide tenants with a statement of terms, belong to a redress scheme, and register on the Private Sector Database. A failure to join a redress scheme will prevent landlords from marketing their properties for let. While these requirements are outlined in the bill, further details will be specified in subsequent regulations.

New Provisions

A significant new provision prohibits landlords from promoting bidding wars for rental properties. Landlords must advertise properties at a specified rent, and cannot accept offers exceeding the advertised amount. This rule, aimed at preventing rent inflation, will ensure rents are aligned with the market rate and can be challenged by tenants under Section 13.

Additionally, the bill extends hazard remediation obligations, previously limited to social housing, to the private rented sector. This means that private landlords will be responsible for addressing hazardous conditions in their properties.

Under Section 8, landlords will be required to wait a minimum of one year from the start of the tenancy before they can repossess the property to either move back in themselves, allow a family member to live there, or sell it.

Next Steps

Published just before the party conference recess, the Renters' Rights Bill signals the government’s urgency in addressing rental market issues, especially given the delays under the previous administration. Given its largely familiar provisions, the bill could move through Parliament faster than its predecessor. Further regulations are expected soon, with the bill's next reading scheduled for 9 October.

This sweeping reform has the potential to reshape the rental landscape, strengthening tenant protections while ensuring landlords meet higher standards.