What is the Renters' Rights Bill?
If you're involved in the letting industry, you've likely heard of Labour's Renters' Rights Bill, which was brought in in response to the Conservatives' Renters (Reform) Bill. But what exactly is it, and what does it mean for letting agents?
This Bill represents the most significant overhaul of housing law in the past 30 years, impacting every aspect of the lettings industry. Key changes include abolishing Section 21 evictions, streamlining dispute resolution processes, and stricter enforcement of property standards.
The primary aim of the legislation is to create a more balanced rental market and empower tenants.
We understand the challenges this Bill may pose for our partner agents, and we're here to guide and support you through the changes the Bill will bring!
Latest Renters' Rights Bill update
15th January, 2025
The legislation had its first reading in the House of Lords on the 15th of January, 2025.
This followed the third reading in the House of Commons where lawmakers voted 440 in favour and 111 against the legislation.
The second reading in the House of Lords is set to take place on the 4th of February, 2025.
How HomeLet can support you
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Our pre-tenancy platform, which is free for partners, reduces admin, supports with compliance burdens and is packed full of tools to make progressing a let that bit easier.
Our expert team are also here to support you through the upcoming changes. If you're worried about the Renters' Rights Bill, or you'd like to find out more information, please contact your Customer Development Manager, or call us on 0800 035 8258.
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Industry insight
Commenting on the Renters' Rights Bill, Will Eastman, HomeLet's Head of Legal, said:
The Bill continues to progress with some pace and what is clear is that the Government are not waiting for the sector to be ready for the changes, their approach appears to be to implement the Bill and deal with the consequences later.
The Bill delivers significant change to the way in which the private rental sector (PRS) will have to operate, with damning consequences for those landlords that fail to comply with the new rules. It is inevitable that the landlords who chose to stay in the PRS are likely to look to letting agents to assist them with compliance. Letting agents need to be ready for the changes and partnering with reliable and professional suppliers is crucial.
We know that the Bill will deliver difficult change to the sector, but what we haven’t yet seen is how the Court will interpret the new rules and the unintended consequences the Bill will create.
We will continue to monitor the Bill’s progress closely and support our partner agents with adapting to deliver for their landlords. Whilst we know that there are challenges ahead, there are also opportunities to do things differently.”
Renters' Rights Bill FAQs
- What is the Renters' Rights Bill?
The Renters' Rights Bill is a proposed legislation change which will bring major updates to the private rental sector and require letting agents and landlords to adapt to stricter regulations.
- How will the abolition of Section 21 affect letting agents?
The abolition means landlords won't be able to end tenancies without giving a specific reason. Agents will need to support landlords in using revised Section 8 processes, which outline specific legal grounds for possession, such as wanting to sell, move in, rent arrears or property damage.
If any of your landlord customers are worried about the abolition of Section 21, our Rent Guarantee product can help protect their income.
- When will the Renters' Rights Bill become law?The bill is currently progressing through Parliament and doesn't yet have a set date, however, it is expected to become law in Spring or Summer of 2025.
- Will tenancy agreements change under the new rules?
Yes, periodic tenancies are expected to become the default. This means tenants can leave with two months' notice, and landlords can only end tenancies using valid grounds under Section 8.
- Can six or twelve months' rent still be taken up-front?
No, this is a recent proposed amendment which will not allow for more than one month's rent to be paid in advance. This makes intelligent referencing that looks at tenants' actual affordability even more important.
- How will the Bill impact existing tenancies?
On commencement of the Act, fixed terms will be abolished, regardless of where they are in their fixed term. New rules on ending the tenancy will apply as from the end of the rental period which exists when the Act commences.
- What changes are there around rent arrears?
The new changes to possession grounds will mean a tenant will need to be in three months of arrears before a notice can be served on mandatory grounds. The notice will then give a further four weeks before possession applications can be made to the Court. Any awarded, but unpaid, Housing Allowance of Universal Credit payments can't be counted in the arrears.
If any of your landlord customers are worried about rent arrears and the cost of going to court, our Rent Guarantee product can help protect their income.
- What if I have served notice under S8 or S21 already
There are some transitional periods for instances in which notices under S8 or S21 have already been served or possession proceedings have already started, before commencement. Tenancies will remain assured shorthold tenancies for the purpose of concluding any proceedings already issued, and any notices which have been served shall remain valid until the expiry of their usual shelf life, or a maximum of three months from the date of commencement – whichever is sooner.
- Will landlords have to allow pets on all tenancies?
Not necessarily – a landlord will not be able to unreasonably say no to pets within specific timescales. If landlords do agree to pets, they will be able to require that tenants take out Pet Damage Insurance. Landlords will also be able to require reimbursement of the cost of insurance to protect against pet damage if they agree to allowing a pet in the property.
- Are there any new regulations around dispute resolution?
The Bill gives the power for it to be made a mandatory requirement of landlords to be a member of a recognised Landlord Redress Scheme.
The timeline of the Renters' Rights Bill
What happened when - a full timeline of how the Bill came to be, and its progress through Parliament
17th May, 2023
by the Conservative government
13th June, 2024
11th September, 2024
9th October, 2024
14th January, 2025
15th January, 2025
4th February, 2025
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