The Renters’ Rights Bill (RRB 2024), introduced to Parliament on 11 September 2024, represents a major shift in the private rented sector, continuing reforms previously outlined in the Renters (Reform) Bill 2023. For landlords, this new legislation may feel daunting due to the changes in tenancy regulations, but for most responsible landlords, these reforms should not pose significant challenges. In fact, they could help foster better relationships with tenants and ensure that rental properties are maintained to high standards.
Key Changes in the Renters’ Rights Bill
- Abolition of Fixed-Term Assured Tenancies and ASTs
One of the most significant changes under the RRB 2024 is the abolition of fixed-term assured tenancies and assured shorthold tenancies (ASTs), which means landlords will no longer be able to rely on “no-fault” evictions under Section 21 of the Housing Act 1988. This will provide tenants with more security, but for responsible landlords—those who already value stable, long-term tenancies and fair treatment of tenants—this change should not cause major disruption.
For those instances where possession is required, a reformed Section 8 regime will allow landlords to seek repossession on reasonable grounds, such as a tenant’s failure to pay rent or the need to sell or move into the property. It’s worth acknowledging that while Section 8 can sometimes present challenges, with the right legal guidance, it remains an essential tool for landlords.
- The Decent Homes Standard
The RRB 2024 introduces a “Decent Homes Standard” for the private rented sector, which aims to ensure that properties are free from serious hazards. While some landlords may view this as additional regulation, with the risk of financial penalties for non-compliance, most will already be meeting or exceeding these standards. Ensuring that properties are free from health hazards like damp and mould aligns with what responsible landlords already strive to achieve: providing good-quality, safe homes for tenants. The extension of “Awaab’s Law” to private landlords ensures that reported health hazards are investigated and fixed swiftly, promoting a better living environment for tenants and reducing potential disputes. - New Restrictions and Rights
The Bill also proposes several changes designed to create a fairer rental market:- Ending blanket bans on tenants with children or those receiving benefits.
- Prohibiting rental bidding wars by requiring landlords to publish an asking rent and accept no more than this.
- Limiting rent increases to once per year, capped at the market rate.
These reforms may seem restrictive at first, but they ensure transparency and fairness in the rental market. They also protect tenants from backdoor evictions through unreasonable rent hikes. Most landlords simply want reliable tenants who can afford the rent and look after the property—these changes align with those goals.
- Tenant Rights to Pets
Another change under the RRB 2024 is the provision for tenants to request the right to keep pets. While landlords cannot unreasonably refuse this, they are still entitled to request pet insurance or compensation for damage, ensuring their property is protected. - A New Ombudsman and Database
To streamline dispute resolution and provide clear guidance for landlords and tenants, the RRB 2024 introduces a new ombudsman and a private rented sector database. For landlords, this could offer an efficient and cost-effective way to resolve disputes, while the database helps them stay on top of compliance requirements.
Why the RRB 2024 Should Not Be a Concern for Responsible Landlords
Although parts of the landlord community have expressed hostility toward these reforms, our position remains that these changes should not adversely affect responsible landlords. If anything, the RRB 2024 helps distinguish those who are committed to providing quality housing from those who do not adhere to basic standards. Our clients are conscientious property investors who want their tenants to live in safe, secure homes. Provided tenants pay their rent and take care of the property, these reforms should help both parties enjoy a fairer and more transparent relationship.
Under the RRB 2024, while Section 21 “no-fault” evictions will be abolished, landlords will still retain significant protections through Section 8 of the Housing Act 1988. Section 8 allows landlords to seek possession of their property on specific, justifiable grounds, such as rent arrears, breaches of tenancy agreements, or if the landlord intends to sell or move into the property. Although the process can sometimes be more complex and time-consuming than a Section 21 eviction, the grounds for possession under Section 8 are due to be strengthened to ensure that landlords can regain their property when necessary. This protection gives landlords the ability to take action in circumstances where tenants fail to meet their obligations, providing a balanced framework that supports responsible tenancy management.
In short, the RRB 2024 helps ensure a balance between the rights and responsibilities of landlords and tenants. While there may be an adjustment period, landlords who manage their properties responsibly, keep them in good condition, and engage positively with tenants should not see this Bill as a threat. Instead, they may find that these reforms help create more stable, long-term tenancies with happier, more secure tenants.
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