What does the Renters’ Rights Bill 2024 mean for you?

The Renters’ Rights Bill 2024 (RRB) is currently with the House of Commons. It builds on the former Conservative Government’s Renters (Reform) Bill 2023 (2023 Bill), which had its first reading in the House of Lords but did not make it to Royal Assent before the General Election in the summer of 2024.

As stated in the RRB, the Bill makes “provision changing the law about rented homes, including provision abolishing fixed term assured tenancies and assured shorthold tenancies”. 

The will affect multiple sectors to varying degrees, including charities, businesses and private residential tenants.

Some of the key changes included in the RRB are laid out below.

Periodic tenancies

"Periodic tenancies" will replace assured shorthold tenancies. There will be no express end date to these tenancies, with tenants being able to give notice at any time to end the tenancy. 

Abolition of ‘no-fault’ evictions

One of the most prominent changes proposed in this draft legislation is to remove section 21 of the Housing Act 1988.

Currently, after the initial agreed fixed term of a tenancy has ended, a landlord can require a tenant to leave with two months’ notice. The Government says that the change to remove section 21 will be implemented in one stage, providing tenants with immediate security.

The RRB establishes that landlords will only be able to regain possession of the property by relying on one of the statutory grounds for possession.

Reformed grounds for possession

The reforms also aim to make it easier for landlords to gain possession of their property on reasonable grounds.

For example, a new protected period will be introduced at the beginning of new tenancies, meaning a landlord cannot evict a tenant for the first twelve months if the grounds for that eviction are to sell the property or that the landlord wants to live there themselves. Once that twelve month period has ended, landlords must then give four months’ notice if they wish to gain possession based on these same grounds.

The Decent Homes Standard and ‘Awaab’s Law’ 

Currently, the Decent Homes Standard only sets out the minimum acceptable standards for social homes, but the Labour Government is proposing to extend these standard to the private rental sector as well.

Under this standard, private landlords who fail to address serious hazards at their property may be prosecuted or liable to a civil penalty.

‘Awaab’s Law’ will also be applied to protect tenants from health hazards such as damp and mould, which landlords will need to investigate and fix.

Protection from discrimination

Under RRB, landlords will not be able to refuse a tenancy based on the fact that the prospective tenant has a child or is on benefits.

An end to rental bidding

It will become unlawful for prospective tenants to offer and for landlords to accept anything other than the rent amount advertised. This will prevent people from being priced out of properties they could otherwise afford to rent.

Private Rented Sector Landlord Ombudsman

As previously mentioned, the Government is proposing to introduce a new ombudsman specifically for settling disputes efficiently and fairly within the private rented sector.

This will hopefully alleviate some of the pressure currently faced by the court system and any extra strain that may be caused by the abolition of section 21 evictions.

Private Rented Sector Database

It is as yet unclear as to how landlords will input data into this database, but its purpose will be to help them understand their legal obligations and demonstrate their compliance with said obligations. A similar database already exists in Wales and it is thought likely that this will be the template.

Local authority enforcement

Local authorities will be given more powers when it comes to investigating anyone allegedly in breach, and local authorities’ abilities to enforce civil penalties will be expanded.

To ensure local authorities are using these new powers as directed, there will also be a requirement for them to report on enforcement activity.

Conclusion

Once passed, as the majority of the proposed measures are likely to be, the new rules are expected to come into force in 2025 and will apply to new and existing tenancies.

The Government’s guide to the Renters’ Rights Bill can be found online. More information on the RRB can be found in our Renters’ Rights Bill: considerations for faith organisation landlords article. If you would like further advice on the Renters’ Rights Bill, please either contact Dan Carter, Chris Sharpe, or your usual contact at Stone King.