On September 11, 2024, the UK House of Commons introduced the Renters’ Rights Bill 2024, building on the earlier Renters (Reform) Bill 2023. This legislation has the potential to significantly reshape England’s build-to-rent and private-rented sectors. Here’s an overview of the proposed changes and their implications for both landlords and tenants.
Current Eviction Laws: The Status Quo for Landlords
At present, landlords can evict tenants using a process known as “no-fault” eviction under Section 21 of the Housing Act 1988. This allows landlords to issue a two-month notice without providing any specific reason for the eviction. If tenants refuse to vacate, landlords must resort to court proceedings, often leading to the involvement of bailiffs.
Alternatively, landlords can utilise Section 8 grounds for eviction, which require specific, documented reasons such as rent arrears. However, this process necessitates a court hearing where landlords must provide evidence of their claims.
During the previous Conservative government, there was a proposal to eliminate no-fault evictions, but the initiative stalled due to concerns about court backlogs and time constraints before the July election.
Key Reforms in the Renters’ Rights Bill 2024
Here are the major changes proposed in the Renters’ Rights Bill 2024:
- Abolition of Section 21 Evictions
- The Bill aims to abolish Section 21 evictions, enhancing tenant security by preventing “no-fault” evictions. Landlords will only be able to terminate tenancies under specified conditions, such as tenant misconduct or intent to sell the property. This reform seeks to offer tenants increased stability and protection against unfair eviction practices.
- Extending Awaab’s Law: Addressing Mould and Damp
- Following the tragic case of Awaab Ishak, who died due to prolonged mould exposure, the Bill will extend existing obligations for mould and damp removal to private landlords. This will impose stricter timelines for addressing serious hazards, giving tenants the right to seek court enforcement if landlords fail to comply.
- Equitable Possession Grounds
- The Bill revises possession grounds to ensure fairness for both tenants and landlords. Key provisions include:
- Landlord intention to sell or occupy: Landlords must provide at least four months’ notice.
- Significant rent arrears: A tenant must owe at least three months’ rent, requiring a four-week notice period.
- Tenant misrepresentation: If a tenancy was obtained through false statements, landlords can issue two weeks’ notice.
- Serious criminal convictions or anti-social behavior: Immediate possession proceedings can be initiated if a tenant is convicted of a serious crime.
Additional Proposed Changes
The Renters’ Rights Bill also includes several other important reforms aimed at fostering better relationships between landlords and tenants:
- Elimination of Fixed-Term Tenancies: Tenancies will become open-ended, providing greater security for tenants.
- Controlled Rent Increases: Rent increases will be limited to once a year via a Section 13 notice.
- Ban on Rental Bidding Wars: Landlords and agents will be prohibited from encouraging tenants to outbid one another above the listed rent price.
- Anti-Discrimination Measures: It will be illegal for landlords to discriminate against tenants receiving benefits or those with children.
- Tenant Rights Regarding Pets: Tenants will have the legal right to request permission for pets.
- New Landlord Ombudsman Requirement: All landlords will be required to join a compulsory Ombudsman scheme, enhancing support for tenants.
Conclusion
The Renters’ Rights Bill 2024 represents a significant shift in the rental landscape in the UK. By understanding these changes, landlords can better prepare for compliance and foster positive relationships with their tenants. As this Bill moves through Parliament, it is essential for both landlords and tenants to stay informed and engaged with the evolving rental regulations.
For expert advice on navigating these changes, please email Ochin Belove at Obelove@thelegalpractice.co.uk to arrange a consultation landlord and tenant specialist solicitor Paul Mendolshn.