Renters (Reform) Bill and Renters Rights Bill - what we know 

The "Renters' Rights Bill" was introduced to Parliament on 11 September 2024. This Bill represents the Labour Government's adaptation of the Conservative Party's earlier "Renters' Reform Bill" which had reached its second reading in the House of Lords before Parliament was prorogued in July 2024, effectively halting further progress on it.

Rather than discarding the previous work, the Labour Government retained many provisions from the Renters’ Reform Bill in the new Renters’ Rights Bill but with significant updates. Overall the Renters’ Rights Bill takes a more tenant-friendly stance. Below we outline the key provisions of the Renters’ Rights Bill and note where they diverge from the original Renters’ Reform Bill:

1. Abolition of Section 21 "No-Fault" Evictions
   Both Bills sought to abolish Section 21 notices but the Renters' Reform Bill proposed a phased approach, delaying abolition for existing tenancies until the Lord Chancellor could review the county court eviction process to ensure it could handle the anticipated increase in Section 8 notices. The Renters’ Rights Bill eliminates this review - intending to end "no-fault" Section 21 evictions for both new and existing tenancies simultaneously.

2. End of Fixed-Term and Shorthold Tenancies
   Both Bills propose eliminating fixed-term tenancies making all tenancies periodic (typically month-to-month) to provide tenants with greater flexibility. Existing fixed-term tenancies would immediately convert to periodic ones. Assured Shorthold Tenancies (ASTs) will also no longer exist as these will become Assured Tenancies.

3. Tenant's Right to End Tenancy
   Under the Renters’ Rights Bill tenants can give landlords two months’ notice at any point in the tenancy. By contrast, the Renters’ Reform Bill stipulated that tenants could only give notice after the first four months thereby creating an effective minimum term of six months. The Renters’ Rights Bill allows notice from day one, thus creating a two-month minimum term.

4. Changes to Section 8 Eviction Grounds under the Housing Act 1988
   Certain proposals from the Renters’ Reform Bill are omitted here. For instance, the new Ground 8A (mandatory eviction for tenants with two months’ arrears at least three times in three years) has been removed. Instead, the mandatory Ground 8 requirement for rent arrears will increase to three months. Notice periods for Section 8 evictions extend to four weeks (up from two), and new Ground 1A (eviction for property sale) requires a landlord to give four months’ notice (up from two) and wait one year (up from six months) from tenancy start to use it. New penalties include a fine of up to £7,000 if a landlord re-lets a property within 12 months of serving notice. Further details about additional eviction grounds are available but not exhaustive.

5. Conditions for Landlords to Use Section 8 Grounds
   Currently landlords can pursue Section 8 evictions even if the tenant’s deposit is unprotected. The Renters’ Rights Bill mandates that deposits be protected or returned before Section 8 can be invoked.

6. Regulations on Rent
   Under the Renters’ Rights Bill landlords must publicly list the rental amount in advertisements and are barred from accepting higher offers than advertised. Rent increases can only occur once a year, and require a two-month notice via a Section 13 notice. Tenants may challenge rent increases with the First-Tier Tribunal (FTT) which may no longer impose higher rates than proposed. Additionally rent increases won’t be backdated and will apply only from the FTT decision date.

7. Mould and Damp Prevention
   The Renters’ Rights Bill incorporates “Awaab’s Law” (initially absent from the Renters’ Reform Bill) which mandates timely repairs of mould and damp in the private sector. If landlords fail to address hazards within a specified time (details forthcoming) tenants may file claims for breach of contract.

8. Ombudsman for Private Rented Sector
   Both Bills establish a Private Rented Sector Landlord Ombudsman to handle tenant grievances.

9. Discrimination and Pet Ownership
   Both Bills restrict landlords from unreasonably denying tenant requests to keep pets although the Renters' Rights Bill shortens the response window from 42 to 28 days. Landlords may require pet insurance for potential damage with premiums passed on to tenants. Decisions on pet refusals are subject to ombudsman review or court referral. Blanket bans on tenants receiving benefits or with children are also prohibited under the Renters’ Rights Bill.

The market’s response to these proposed changes remains uncertain. Current indications suggest landlords are waiting to assess the Bill’s implementation before making major decisions. The Labour Government proposes that the Renters’ Rights Bill will take effect in summer 2025. For guidance on existing tenancies or if you would like to discuss any of these topics further please contact us.