This week, the first reading of the proposed Renters Rights Bill (for England and Wales) under the Labour Government took place.
The bill is set to bring about big changes for both landlords and tenants. The aim is to create a balance between both parties, making the rental market fairer and more inclusive.
It’s important that both landlords and tenants are aware of the upcoming changes, as some are thought to be taking place as early as summer 2025. By reading up on the proposals, people can prepare for any adaptations that need to be made to be compliant with the law.
As always, seeking legal counsel can help to provide the support needed to move forward on the ever-changing rental landscape.
We asked legal experts Butterworths to explain what it will mean for you – whether you are a renter or a landlord.
For tenants
- The removal of ‘no fault’ evictions will lead to increased security and stability.
- The removal of discrimination against families with children or those on benefits.
- Doubled notice periods for rent increases, and a chance to challenge them.
- More rights when it comes to having pets in rental properties.
For landlords
- More thorough compatibility screening of tenants.
- Making sure tenants are given longer notice periods before increasing rent.
- Ensuring property assets are protected whilst accommodating tenant’s desires to own pets.
- Preparing for the ombudsman oversight when it comes to potential disputes with tenants.
Helping people who rent – the proposed changes
The proposals in The Renters Rights Bill should make way for a lot of positive changes for people who rent in the UK.
There’s a lot to take in, so we’re going to break it down for you. Let’s discuss each of the changes that will have an effect on both landlords and tenants.
Section 21 ‘no fault’ evictions to be abolished
To create a more level playing field between tenant and landlord, the ability to evict someone without reason will come to an end.
This is expected to be in full force by summer 2025 and will mean that landlords will only be able to evict a tenant under reasonable circumstances. Both existing and new tenancies will benefit from the removal of this rule and will create huge changes in the way private landlords evict people.
Challenging rent increases
Tenants will be given rights to challenge rent increases, to deter landlords from using this as a way to get around section 21 to evict.
Alongside this, landlords will no longer be allowed to accept higher rent bids from tenants, which will end bidding wars and hopefully create a fairer system. Rent increases are suggested to be restricted to once a year.
An end to discrimination against those on benefits
For those on benefits, landlords will no longer be able to refuse tenants due to their income source.
The Government is also thinking of extending this to vulnerable groups, such as people who have been released from prison. The hope is this will create a fairer rental market for people who previously may have been penalised for their life circumstances.
Landlords can no longer refuse families with children
Landlords will no longer be allowed to refuse families with children, in the hope that it will give people the ability to find a rental property more easily if they have children.
More rights for pet owners
Under the Renters Rights Bill, tenants will be able to request permission for a pet before and during the tenancy.
This request will only be denied if a fair reason is given, with tenants being able to challenge this if a reason is not provided.
However, landlords still have the right to request that the tenant has insurance in place to protect them from any damage to the property.
Decent Homes Standard
Landlords will be required to keep homes up to standard when it comes to health and safety. Initially, this was implemented within the public rented sector, but now this will also be mandatory for private landlords.
Failure to deal with issues in a timely manner will have serious consequences, as Labour have also brought in Awaab’s Law from the public sector.
This means landlords could face fines up to £7,000 and risk prosecution if they fail to deal with mould and damp complaints within 14 days.
Introducing a government-approved ombudsman to cover private landlords
The new ombudsman will be able to deal with disputes between landlord and tenant and offer mediation where necessary. They will be able to request apologies, take remedial action, and/or pay compensation up to £25,000.
More visibility for tenants via landlord register
A mandatory part of the legislation which will give tenants the ability to see who their landlord is, and if their properties meet the legal requirements. But this doesn’t just benefit tenants, as it will give landlords the ability to view legal requirements under the bill also.
Getting legal support and advice
At Butterworths, we understand that these new laws can have big implications for both tenants and landlords.
Sometimes, when faced with such changes, people can get overwhelmed, and need clarity on their rights, or the changes they may need to implement.
We’re here for you. Contact us today and get the support you deserve.
