Guide to the Renters’ Rights Bill

Posted on September 14th, 2024

A summary of the measures in the Renters’ Rights Bill which was introduced to Parliament on 11 September 2024.

The Renters’ Rights Bill will:

• Abolish section 21 evictions and move to a simpler tenancy structure where all assured tenancies are periodic – providing more security for tenants and empowering them to challenge poor practice and unfair rent increases without fear of eviction. We will implement this new system in one stage, giving all tenants security immediately.
• Ensure possession grounds are fair to both parties, giving tenants more security, while ensuring landlords can recover their property when reasonable. The bill introduces new safeguards for tenants, giving them more time to find a home if landlords evict to move in or sell, and ensuring unscrupulous landlords cannot misuse grounds.
• Provide stronger protections against backdoor eviction by ensuring tenants are able to appeal excessive above-market rents which are purely designed to force them out. As now, landlords will still be able to increase rents to market price for their properties and an independent tribunal will make a judgement on this, if needed.
• Introduce a new Private Rented Sector Landlord Ombudsman that will provide quick, fair, impartial and binding resolution for tenants’ complaints about their landlord. This will bring tenant-landlord complaint resolution on par with established redress practices for tenants in social housing and consumers of property agent services
• Create a Private Rented Sector Database to help landlords understand their legal obligations and demonstrate compliance (giving good landlords confidence in their position), alongside providing better information to tenants to make informed decisions when entering into a tenancy agreement. It will also support local councils – helping them target enforcement activity where it is needed most. Landlords will need to be registered on the database in order to use certain possession grounds.
• Give tenants strengthened rights to request a pet in the property, which the landlord must consider and cannot unreasonably refuse. To support this, landlords will be able to require pet insurance to cover any damage to their property
• Apply the Decent Homes Standard to the private rented sector to give renters safer, better value homes and remove the blight of poor-quality homes in local communities.
• Apply ‘Awaab’s Law’ to the sector, setting clear legal expectations about the timeframes within which landlords in the private rented sector must take action to make homes safe where they contain serious hazards.
• Make it illegal for landlords and agents to discriminate against prospective tenants in receipt of benefits or with children – helping to ensure everyone is treated fairly when looking for a place to live.
• End the practice of rental bidding by prohibiting landlords and agents from asking for or accepting offers above the advertised rent. Landlords and agents will be required to publish an asking rent for their property and it will be illegal to accept offers made above this rate.
• Strengthen local authority enforcement by expanding civil penalties, introducing a package of investigatory powers and bringing in a new requirement for local authorities to report on enforcement activity.
• Strengthen rent repayment orders by extending them to superior landlords, doubling the maximum penalty and ensuring repeat offenders have to repay the maximum amount.

 

Section 8 Grounds – Proposed Amendments

As it stands, here are the proposed amendments to the Section 8 Grounds (we have only included Grounds that will be relevant to our members, for the full grounds please see the gov.uk guide);

Mandatory Grounds:

Ground 1; The landlord or their close family member wishes to move into the property. Cannot be used for the first 12 months of a new tenancy. 4 months’ notice required.

Ground 1A; The landlord wishes to sell the property. Cannot be used for the first 12 months of a new tenancy. 4 months’ notice required.

Ground 4A; A property is let to full-time students and is required for a new group of students in line with the academic year.      4 months’ notice required.

Ground 6; The landlord wishes to demolish or substantially redevelop the property which cannot be done with the tenant in situ. Various time limits and/or notice requirements exist for this ground depending on the circumstances. The landlord and tenancy must be of a certain kind. 4 months’ notice required.

Ground 6A; The landlord is subject to enforcement action and needs to regain possession to become compliant. 4 months’ notice required.

Ground 7; The tenancy was passed on by will or intestacy. Possession proceedings must begin no later than 12 months after death or, if the court directs, after the date on which the landlord became aware of the death. 2 months’ notice required.

7A; Severe ASB/Criminal Behaviour. The tenant has been convicted of a type of offence listed in the ground, has breached a relevant order put in place to prevent anti-social behaviour or there is a closure order in place prohibiting access for a continuous period of more than 48 hours. Landlords can begin proceedings immediately – no notice period required.

Ground 7B; At least one of the tenants has no right to rent under immigration law as a result of their immigration status and the Secretary of State has given notice to the landlord of this. 2 weeks’ notice required.

Ground 8; The tenant has at least 3 months’ (or 13 weeks’ if rent is paid weekly or fortnightly) rent arrears both at the time notice is served and at the time of the possession hearing. 4 weeks’ notice required.

Discretionary Grounds:

Ground 9; Suitable alternative accommodation is available for the tenant. 2 months’ notice required.

Ground 10; The tenant is in any amount of arrears. 4 weeks’ notice required.

Ground 11; The tenant has persistently delayed paying their rent. 4 weeks’ notice required.

Ground 12; The tenant is guilty of breaching one of the terms of their tenancy agreement (other than the paying of rent). 2 weeks’ notice required.

Ground 13; The tenant has caused the condition of the property to deteriorate. 2 weeks’ notice required.

Ground 14; The tenant or anyone living in or visiting the property has been guilty of behaviour causing, or likely to cause, nuisance or annoyance to the landlord, a person employed in connection with housing management functions, or anyone living in, visiting or in the locality of the property. Or the tenant or a person living or visiting the property has been convicted of using the premises for illegal/immoral purposes, or has been convicted of an indictable offence in the locality. Landlords can begin proceedings immediately, no notice period required.

Ground 15; The tenant has caused the condition of the furniture to deteriorate. 2 weeks’ notice required.

Ground 17; The tenancy was granted due to a false statement made knowingly or recklessly by the tenant or someone acting on their instigation. 2 weeks’ notice required.

The current renting system will very much be overhauled. We understand our members may feel uncertain about the future of renting and what the changes may mean for good landlords. SWLA regularly meet with MPs, housing groups and housing advisory boards. In meetings, we are a voice for our landlord and agent members – we will continue to lobby for all changes within the sector to be fair for both tenants and landlords.

We will keep our members updated throughout the Bill to Act process.

For further information see Guide to the Renters’ Rights Bill – GOV.UK (www.gov.uk)