Key Insights on the Upcoming Renters Rights Bill: What Landlords Need to Know
As of September 2024, the labour government have announced a new bill. They have called it the Renters Rights Bill. There will be some hoops to jump through and some amendments made before it is officially legislated. The bill loosely represents the bill originally drafted by The Conservative party the year prior, which was instead labelled the “Renters Reform Bill”.
As members of ARLA Propertymark, we have received insights from them, including key highlights as follows:
End fixed-term tenancies and move to rolling periodic tenancies.
Tenants will be able to stay in their home until they decide to end the tenancy by giving two months’ notice or the landlord can evidence a valid ground for possession. Landlords will need to give four months’ notice to move in or sell the property, but there is a 12-month protected period for tenants at the beginning of a tenancy.
There will be a single date after Royal Assent and Commencement for the removal of Section 21 evictions, which is not dependent on court reform happening first.
A new ground for possession which will allow landlords renting to students in HMOs to seek possession ahead of each new academic year.
Rent Repayment Orders will be expanded so they are wider in scope and for repeat offenders, and fines will be increased in line with inflation.
A ban on rental bidding wars with letting agents and landlords to be legally required to publish rent for their property and then unable to ask or accept any bids above this price.
Ban on in-tenancy rent increases written in to contracts, with landlords only allowed to raise the rent once a year, and to the market rate
A serious of events have been laid out before the bill can be legislated, which indicates that the final version could be expected some time during 2025. The details are as follows:
Bill Started in the House of Commons
- 1st Reading
- 2nd Reading (currently at this stage)
- Committee Meeting
- Report Stage
- 3rd Reading
Bill in the House of Lords
- 1st Reading
- 2nd Reading
- Committee Stage
- Report Stage
- 3rd Reading
Our view is that although the bill offers substantial changes, there are some positive takes, including a much clearer pathway for possession of the property through owner occupation or sale, which was not clear in the previous draft.
If you would like to discuss or need support with these upcoming proposals, you can reach out to our Lettings Manager, James Gwynne, who will be happy to discuss further. His details are:
Email: [email protected]
Telephone: 01905 675999
Alternatively, you can secure tickets to our next Landlord Seminar, which will be held on Thursday 7th November, where this topic, and others such as the budget, will be high on the agenda for discussion. Find out more here: https://www.eventbrite.co.uk/e/nicol-co-landlord-event-tickets-895083126727?utm-campaign=social&utm-content=attendeeshare&utm-medium=discovery&utm-term=listing&utm-source=cp&aff=ebdsshcopyurl