▶ Big changes are on the horizon for the rental market, with the Renters’ Rights Bill, introduced by the Labour Government on 11th September 2024.
The reforms within this bill are designed to offer greater protections for tenants, but they also bring significant changes for landlords.
👉 What changes are on the horizon 👇
1️⃣ Goodbye to “No-Fault” Evictions
▶ One of the most talked-about changes is the end of Section 21, commonly known as “no-fault” evictions. This means landlords will no longer be able to ask tenants to leave without a reason. Instead, you’ll need a valid, legally defined reason for ending a tenancy, such as rent arrears or wanting to sell the property.
Understandably, many landlords are concerned that this will make it harder for them to regain possession of their properties.
2️⃣ Rent Increases and Bidding Wars
▶ Under the new rules, landlords can only increase the rent once a year, which must align with market rates. The idea is to provide tenants with more stability and prevent unfair rent hikes.
The bill will also stop rental bidding wars. From now on, landlords and agents will need to publish an asking rent and they won’t be able to accept offers above this price. This could be a welcome change for tenants, especially in high-demand areas where bidding wars have pushed higher rents.
3️⃣ Tenant Protections - Pets, Benefits and Families
▶ The Renters’ Rights Bill also aims to make the market fairer by stopping landlords from discriminating against tenants who have children or receive benefits.
▶ Additionally, tenants will have the right to request to keep pets in their home and landlords will need a good reason if they refuse. You can still ask tenants to take out pet insurance to cover potential damage, but blanket “no pets” policies will be a thing of the past.
4️⃣ Awaab’s Law and the Decent Homes Standard
▶ Named after a tragic case involving a toddler who died due to mould exposure, Awaab’s Law will now apply to private rentals.
▶ Landlords must fix serious health hazards like dampness or mould within a set timeframe or face penalties. The Decent Homes Standard will also apply to private rentals, ensuring properties are safe and habitable.
👉 Preparing for the Changes 👇
With the Renters’ Rights Bill expected to become law by the summer of 2025, there’s still time to prepare. Start by reviewing your tenancy agreements, updating your policies on pets and rent increases and ensuring your properties meet the Decent Homes Standard. It’s also a good idea to stay informed about how the bill progresses, as MPs and peers may propose further changes before it becomes law.
I am an Independent Financial and Mortgage Adviser and have worked in Financial Services for over 12 years. During my career I gained experience in assisting both individual and corporate clients.…
