The Renters’ Rights Bill: Tenants’ Triumph or Landlords’ Loss
Following on from the Government’s announcement yesterday that no fault evictions are to be banned by summer 2025, the below article explains the intended reforms to the existing residential possession process.
The Renters (Reform) Bill was first introduced to Parliament in 2023 and was seen as a crowning achievement following years of campaigning by tenant advocacy groups calling for stronger protections in the private rental market. A commentary on the 2023 bill can be found here.
In 2023 it was thought the bill would be rushed through parliament. However, it was effectively paused until 17 July 2024 when the Kings Speech signalled the beginning of a new parliamentary session along with the new Labour Government’s pledge to give “greater rights and protections to people renting their homes, including ending ‘no fault’ evictions and reforming grounds for possession” . This included the introduction of the Renters’ Rights Bill (Bill). The Bill reflects the new Labour Government’s broader housing strategy to tackle the affordability and availability of rental homes, particularly in high-demand urban areas.
- Indefinite Tenancies
One cornerstone of the 2024 proposals is the introduction of indefinite tenancies. These will replace fixed-term tenancy agreements meaning tenants cannot be evicted unless they breach specific terms of the tenancy or if the landlord has valid grounds under Section 8 of the Housing Act 1988.
This change aims to protect tenants from arbitrary eviction and provide them with a level of permanence as used within many European countries such as Germany and the Netherlands. For the landlords this creates a shift towards long-term renting relationships and the requirement to comply with stricter legal grounds to recover their properties.
- Strengthening Section 8 Grounds for Eviction
The 2024 Bill clarifies and enhances the grounds under Section 8 to ensure landlords can still regain possession of their properties in legitimate circumstances. The key reforms include:
- New grounds for eviction if the landlord wants to sell the property or move into it themselves. The landlord will be required to provide at least 6 months’ notice in these cases, and the tenants who are evicted under these ground cannot be re-rented in the same property within three months.
- Stronger grounds for eviction relating to anti-social behaviour and rent arrears with clearer procedures for landlords to fast track eviction in cases where tenants cause serious disruption or consistently fail to pay rent.
- Rent Control Measures and Restrictions on Rent Increases
To tackle the rising rental costs, the 2024 Bill introduces new rules on rent increases. Under the new legislation, landlords will only be able to raise rent once per year and will be required to provide two months’ notice prior to any increases. Tenants will also have the power to challenge rent increases they believe are unfair through a new independent tribunal system.
The purpose of this measure is to prevent exploitative rent hikes, particularly in high-demand arears where rental inflation has outpaced wages. Although this is not a direct form of rent control, this aims to make the market more predictable and transparent for tenants.
- Decent Homes Standards
A major focus of the 2024 Bill is improving the quality of rental properties. The Government plans to expand the Decent Homes Standard. This currently only applies to social housing but the aim is to extend this to the private rented sector. Under this standard, all rental properties must:
- be free from serious hazards and health risks, this includes issues such as damp, mould and electrical safety;
- be in a reasonable state of repair;
- be insulated to meet energy efficiency standards; and
- contain modern facilities such as updated kitchen and bathrooms.
Landlords will be legally required to ensure their properties meet these standards, failure to comply could result in significant fines and penalties.
Commentary
The 2024 Bill brings significant advantages for tenants, most notably the abolition of the Section 21 (known as "no fault") evictions. According to Polly Neate, CEO of Shelter:
“The end of no-fault evictions is a game changer for renters. It will mean thousands of people, including families with children, can stay in their homes without the constant threat of losing them.”
Whilst this Bill will offer greater security for tenants, there are concerns that landlords might react by reducing the number of available rental properties. Ben Beadle, CEO of the National Residential Landlords Association warns:
“Landlords are concerned that removing Section 21 without sufficient grounds to regain possession could push some to sell up, further shrinking the rental market.”
This could make it more difficult for tenants to find affordable housing in already competitive markets. It has been stated many landlords view the Bill as an impediment and there is a fear the Bill “could trap them in relationships with problem tenants, as Section 8 involves court processes which could be time-consuming and costly” as stated by Chris Norris, policy director of the National Residential Landlords Association. Matthew Pennycook, the new Housing Minister, has countered this and said landlords would still have “robust grounds” for regaining possession of their property if needed.
Balancing these interests will be key to the Bill becoming a box office success in stabilising the UK rental market.
Please see the current status of the bill here.