Labour’s Renters’ Rights Bill is due to have its second reading in the House of Commons on 9^th October 2024. At this reading, MPs will debate the bill before it continues on its way through Parliament. But what changes can we expect for the rental sector?

The end of Section 21 ‘No-fault’ Evictions

When the Renters’ Rights Bill comes into law, landlords will no longer be able to ask tenants to leave a property without a valid, legally defined reason. Examples of valid reasons include rent arrears or a landlord wanting to sell the property. There will be new mandatory grounds for eviction. And in the case of landlords wanting to move back into, sell or redevelop a property, they won’t be able use grounds for eviction to do so for the first six months of a new tenancy. The aim of these changes and  bringing an end to ‘no-fault’ evictions is to ultimately give tenants more security.

Increased rents and bidding wars

To protect tenants from unfair rent hikes and bidding wars on rental prices, there will be new rules on rents. Under the Renters’ Rights Bill, landlords will only be able to increase the rent on a property once a year. And the rent increase will have to be fair, and in line with market rates. Landlords will also be required to give their tenants two months’ notice of any change in rent.

An end will be brought to bidding wars, which have been experienced in areas of the country where there’s high demand for rental properties. To curb this, landlords and agents will be required to publish an asking rent, and they will not be allowed to accept offers above this price.

The Decent Homes Standard

This is a new standard for the private rental sector. Private landlords will need to ensure their properties are safe and habitable for tenants. Issues such as damp or mould, which may cause serious health issues, will need to be fixed within a set timeframe. The Decent Homes Standard expects rental homes to be free from health and safety hazards including carbon monoxide poisoning or risk of fire. And rental properties are expected to have efficient heating systems and reasonable modern facilities.

Alongside the new standard, Local Authorities will be given new enforcement powers to ensure landlords make properties decent. Councils too will have greater powers to investigate those landlords renting out substandard homes.

Protecting tenants from discrimination

The Renters’ Rights Bill goes one step further to protect tenants, removing the right for landlords to serve blanket bans on who rents their properties. From those with children to those on benefits it will be illegal for landlords to discriminate based on a tenants’ circumstances. The court rules that such bans go against The Equality Act.
Landlords will still be able to serve referencing checks to make sure a tenant can afford the property. And the landlord will always have the final say on who ultimately rents their property.

Tenants with Pets

With regards pets, all tenants will have the right to request a pet in their rental property. And if requested, then landlords must seriously consider it. In the case of a landlord denying the request, tenants will be able to challenge the decision.

To support the changes around the right to keep pets, landlords can specify that tenants take out pet insurance to cover any damage to the property caused by the pet. This will also highlight the responsibility for preventing and resolving any damage caused by pets, will lie with the tenant.

If you are a landlord and concerned about the forthcoming Renters’ Rights Bill, then have a chat with us about helping to manage your rental property. As experts with years’ of experience managing property lets, we know not only the changes involved with the Renters’ Rights Bill. But also how to source the best tenants for you and how to correctly manage all aspects of a tenancy.

Don’t let the new Renters’ Rights Bill cause you stress or a desire to sell up. Give us a call today – 0161 941 4445 or email us here.