The most significant overhaul of private rental laws in over three decades has officially arrived in Parliament.
The Renters’ Rights Bill, put forward by the Labour government, seeks to reform the sector in response to the Conservative rental proposals that did not go through before the general election.
The goals of both parties were to modernise rental regulations and create a more equitable relationship between landlords and tenants.
According to the English Housing Survey, over one in five persons in England currently rent from a private landlord, and the typical tenant is 41 years old.
These suggested modifications may have the following effects on both landlords and tenants.
Section 21 Evictions Are Coming to an End
Tenants are currently able to receive Section 21 notices from their landlords, which force them to vacate the property within two months without giving a reason. These notices are often called “no-fault” evictions. In 2023, nearly 26,000 households received Section 21 notices. Critics argue that these evictions, sometimes referred to as "revenge evictions," can be used to intimidate tenants from reporting poor living conditions or resisting rent hikes.
Landlords will still be able to use a Section 8 notice to evict tenants even if Section 21 would no longer exist. This is applicable when renters break the terms of their lease, such as by failing to pay rent, causing damage to the property, subletting without authorisation, or acting in an antisocial manner.
The pandemic's eviction restrictions have resulted in lengthy court proceedings; some landlords must wait up to 18 months to utilise Section 8 notices to evict tenants. Former Housing Secretary Michael Gove addressed this problem by delaying the repeal of Section 21 until the courts were able to adequately handle the backlog of cases.
However, Deputy Prime Minister and Housing Secretary Angela Rayner now intends to completely ban Section 21 evictions for both new and existing tenancies. Additionally, new legislation would prohibit landlords from discriminating against tenants with children or those receiving housing benefits. Although the goal of these laws is to protect renters, their effectiveness will depend on how well the government can expedite the judicial system.
End of Bidding Wars
According to the new regulations, landlords and renting brokers must post a fixed asking rent and are not allowed to promote or accept offers that are higher than that sum. This aims to eliminate the bidding wars that have inflated rental prices in high-demand areas.
Furthermore, landlords will no longer be permitted to use Section 13 notices or rent review clauses to raise rent during a tenancy. Rent increases will only be allowed once a year or at the conclusion of a fixed-term tenancy.
These measures are intended to enhance transparency and financial stability for tenants while ensuring that landlords adhere to fair and regulated practices.
Rising Rents & Economic Evictions
According to Shelter, around 61,000 private renters are forced to move each year because of rent increases set by landlords or letting agents.
Organisations that support tenant rights, such the Renters' Reform Coalition (RRC), are advocating for stronger safeguards. To prevent unfair rises, they are calling for rent increases to be restricted to the lowest rate of inflation or salary growth.
This raises concerns that uncontrolled rent rises may still force renters out of their homes, even though eliminating Section 21 evictions is a good thing.
New Quality Standards for Rental Homes Privately rented dwellings will be subject to social housing requirements for the first time. Minimum quality requirements for rental houses will be established by two important reforms:
The Decent Homes Standard, which guarantees that rental properties fulfil fundamental requirements for liveability.
Awaab's Law: Named for Awaab Ishak, a two-year-old who tragically died in 2020 from untreated mould and dampness. According to this regulation, landlords who fail to look into alleged hazards within 14 days might be fined up to £7,000.
These modifications aim to improve housing conditions and increase tenant safety while holding landlords more responsible than before.
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