At the beginning of October, the government’s Renters’ Rights Bill – Labour’s version of the previous Renters Reform Bill – received its second reading in the Commons, a month after it was first introduced to Parliament.
The first sitting of the House of Commons Public Bill Committee, which is considering the bill alongside written and oral evidence, took place on 22 October. The committee is scheduled to conclude its considerations and report by 28 November.
Labour claims that the bill will improve the current rental system for the 11 million private renters in the sector but what will it mean for the 2.3 million landlords who serve them?
New eviction rules to be introduced
One of the biggest impacts for landlords will be the banning of Section 21 ‘no fault’ evictions – with the government planning to end the practice for both new and existing tenancies. Grounds for possession will be reformed and expanded to ensure that landlords can still regain their properties.
The end of assured shorthold tenancies
The bill will also abolish assured shorthold tenancy agreements, instead replacing them with rolling periodic assured tenancies.
Stricter rules around rent increases
New rules around rent increases mean landlords will only be allowed to raise the rent once a year and then only to the market rate. The practice of rental bidding will also be stopped. Landlords will have to advertise their rent and will not be allowed to ask for or accept any bids higher than that previously specified.
Improvements in standards
The extension of the Decent Homes Standard and Awaab’s Law to the private sector will mean improvements in the quality of rental properties too. It will place greater responsibility on landlords to respond within set timeframes to hazards, such as mould, and to give tenants more power to raise concerns over poor quality rental properties.
Landlord fines of up to £40,000
Councils will also be given greater powers to tackle unscrupulous landlords, with fines increased to £40,000 for the worst offenders.
A new database for landlords to share property information
A new database – the Private Rented Sector portal – will allow landlords to share important information on their property standards and to demonstrate compliance.
Greater rights for tenants to keep pets
The new bill will also make it easier for tenants to have pets in a rental property since landlords will no longer be able to unreasonably refuse such a request. They will, however, be able to request that tenants take out insurance to cover potential damage.
An end to discrimination against families and benefit recipients
Landlords will also be forbidden from discriminating against tenants who have children or claim benefits.
Conclusion
These are big changes for the sector and for landlords but the ultimate goal is to improve standards and give tenants more security. As the committee considers its evidence it remains to be seen how much the bill may be amended before becoming law.
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