After several weeks of debate and speculation across the rental industry, the government has published the latest version of its Renter’s Rights Bill. The bill delivers on Labour’s manifesto pledge to reform the existing rental experience for both tenants and for landlords.
With 11 million private renters and 2.3 million landlords in England, the Renter’s Rights Bill represents a significant change to the private rental market, as well as to society at large.
In this article, we’ll look at the background of the bill, the government’s aims and motivations, what the Renter’s Rights Bill will do, and how its reforms will be implemented.
September’s updated bill introduced amendments to rent repayment orders and there will likely be slight amendments to the bill as it progresses through Parliament. However, landlords should become familiar with the current proposals as they come ever closer to becoming law.
According to guidelines published by the new Labour government, reform of the rental sector is long overdue with millions of people living with the knowledge that they and their families could be uprooted with very little notice.
Enhancements to renters’ rights have been hotly contested for several years, leading to uncertainty for both renters and landlords about the future. The outgoing Conservative government shelved its own Renters Reform Bill in the run-up to the 2024 General Election, putting an end to its 2019 manifesto pledge to ban no-fault evictions.
Since coming to power, the Labour government has moved swiftly to introduce its Renter’s Rights Bill.
The Renter’s Reform Bill sets out to deliver on Labour’s commitment to transform the experience of private renting with several key reforms, including the ending of Section 21 ‘no fault’ evictions.
The government states that ‘a functioning private rented sector can provide a secure stepping stone for aspiring homeowners and flexibility for those who want it.’ However, its guidance also observes that the insecurity embedded within the current system fails both tenants and landlords who are undercut by a minority of ‘rogues and chancers’.
Addressing the insecurity within the rental system the Renter’s Reform Bill is central to the government’s ‘Opportunity Mission’, which seeks to give everyone the chance to achieve their potential.
The Rental Reform Bill will introduce significant changes to the current rental system. Although it could be argued that most of the bill’s legislative changes primarily impact landlords, both tenants and landlords need to be aware of their full rights and responsibilities.
The bill introduces new charges and penalties that can apply where rules are breached, so landlords and renters should understand what is expected of them to allow rentals to run smoothly and avoid any potential financial penalties.
Although these changes may appear to target landlords, it should be noted that the Renter’s Rights Bill is designed to offer protections for both renters and landlords. Property owners will still be able to take possession of their properties by compiling with grounds outlined within the bill.
“Whilst the bill will introduce changes to the way the industry operates, and the headlines generating cause for concern for many, having read the bill in detail, I strongly believe this will not have a significantly negative impact on the majority of landlords,” says Head of Lettings & Property Management at Edward Mellor, Stacey Rushworth.
“The bill is designed to weed out unscrupulous landlords, who in my experience, are few and far between. When speaking with my clients, and understanding their main concern to be the abolishment of Section 21, I try to reassure them that this does not mean they will not be able to regain possession of their property when required. The process in how this happens will change, but the reality is, landlords will generally still be able to serve notice via S8 for the same reasons they serve S21s now. I would just recommend taking advantage of rent and legal protection policies for additional security and to limit costs,” Stacey continues.
“In my opinion, its business as usual. Responsible landlords who understand investing in property is a long game, should not feel a great impact. If you have any concerns about the specifics of the bill, please feel free to contact my team, or myself, for further information, so that we can assist you in navigating the upcoming changes.’’
According to the government’s most recent guidance, the Renter’s Rights Bill will:
It is not known exactly when the bill will become law, but at its current pace, it is expected that the Renter’s Rights Bill will become begin implementation by the summer of 2025. This will give landlords time to become familiar with the planned changes to rental regulations and prepare accordingly.
The full updated Guide to the Renter’s Rights Bill can be found here.
If you are a landlord and have questions about how the Renter’s Reform Bill could impact your business, contact your friendly, professional rental experts today.
Edward Mellor has been marketing houses to rent in Manchester, Cheshire and Tameside for more than 40 years and has built a complete rental package to help let and manage your property.
All information within this article is correct as of September 2024.
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