Government renters bill overview

During their campaign, Labour promised to bring a new renting experience to private renting.  The Renters Rights Bill is their attempt to fulfil that promise.  

Purpose of the Renters Rights Bill

Labour wants to provide more security and stability for renters.  The core principles are to allow renters to stay in their homes for longer, build lives in their community, and, where possible, avoid homelessness.

What the Bill proposes

There are several parts to the new bill. A summary of each is noted below.

Abolish Section 21 evictions

A section 21 eviction is known as a no-fault eviction. That is, the landlord does not need to provide a reason for the eviction. The proposal is a simplified tenancy in which all tenancy agreements are periodic. That means they have no fixed end date and automatically renew for successive periods until either the landlord or tenant gives notice to terminate.  This, they believe will empower tenants to challenge unfair rent and poor practices without fear of eviction.  

Ensure possession reasons are fair to both Landlord and Tenant

Landlords will be able to recover a property when it's reasonable to do so. Tenants will have new safeguards allowing them more time to find a home if they are evicted by the landlord because they want to sell or move into the property. This will ensure unscrupulous landlords can't abuse grounds for eviction.

Provide stronger protection against backdoor evictions

Tenants have the right to challenge above-market rent designed to force them out of the property. Landlords are still able to increase rent to a fair market price, but where required, an independent tribunal will determine this.

Create a private rented section database

Designed to assist landlords understand their obligations and demonstrate compliance.  Provide better information to tenants to help them make more informed decisions.  Support local authorities with enforcement action where needed most.  All landlords will need to be registered to use specific possession grounds.

Introduce Private Rented Sector Landlord Ombudsman

The goal is to provide quick, fair, impartial, and binding resolutions for tenants' complaints about their Landlords. The goal is to bring tenant and landlord complaints on par with established social and consumer services practices.

Apply the Decent Homes Standard to the private rented sector

This gives renters safer, better-value homes and removes the blight of poor-quality homes.

Apply Awaab's Law to the private rented sector

The landlord must make a home safe where a serious hazard is identified by setting clear legal expectations on the timeframes.

Strengthen rights for tenants to have a pet

The landlord must consider the request for a pet and can't unreasonably refuse. Landlords can require pet insurance to cover any damage caused by a pet.

Make it illegal for landlords or their agents to discriminate against tenants in receipt of benefits or have children

This is to ensure everyone is treated fairly.

End the practice of rental bidding or accepting above advertised rent

Landlords and their agents must publish the asking rent for a property, and it is illegal to accept offers above that rate.

Other areas cover improving local authority enforcement and strengthening rent repayment orders. The above is simply a brief summary; it goes into far more detail, and I will cover the bill in much more detail in the coming weeks.

If you can't wait to find out more, see the details here.

A Landlords view

In general, most of the bill is reasonable for me as a landlord, but some areas concern me. Being forced to allow pets is one. I have had tenants who have caused other residents problems by allowing pets. Not being able to accept higher offers for rent is another. I'm a landlord, and if someone wants to give me more and can afford it, why should I refuse it?  This may result in Landlords asking for a higher rent at the start; accepting lower offers is fine; therefore, simply change the approach. To get a higher offer.

Early stages, the bill will no doubt go through amendments until it arrives at the final stage.