Kings Speech 2024: The Renters Rights Bill
On 17 July, the King opened the new session of Parliament following Labour’s victory in the General Election. As he sat on the throne in the House of Lords, in his robes of state with the Imperial State Crown on his head, there was 1 announcement in the Speech which should have pricked the ears of every Landlord.
“Legislation will be introduced to give greater rights and protections to people renting their homes, including ending no fault evictions and reforming grounds for possession”.
One of the centrepieces in the 1,421-word speech, the so-called Renters Rights Bill spearheads the new Labour Government’s ambitious plan to transform the private renting sector.
So what will the Bill do?
Firstly, it is important to point out that the Bill hasn’t been laid before Parliament yet, so its full terms aren’t yet known. The Government published a briefing report ahead of the Speech which builds on numerous pledges that became part of Labour’s manifesto.
According to the Department for Housing, Communities and Local Government, the Renters Rights Bill will “overhaul the private rented sector” by “transforming rights for the 11million private tenants in England”.
The Bill will abolish Section 21 of the Housing Act 1988, the “no fault eviction” mechanism, with the Government stating there will be a new “clear and expanded” route to possession to allow Landlords to reclaim their properties when needed.
The Bill also strengths tenants’ rights, empowering them to challenge unfair and excessive rent increases. Although it is noted that similar protections are already provided by the First-tier Tribunal Property Chamber. New legislation will also aim to end the so-called “bidding wars” between Tenants.
To add to the bargain, Landlords will also be mandated to “consider and not unreasonably refuse” a Tenant’s request to have a pet at their rental property. To provide balance, the Landlord will have the right to request insurance to cover potential damage caused by the pet.
In recent times, particularly on the social-housing front, we have seen a series of news reports on disrepair in properties. The Bill aims to provide a “Decent Homes Standard” to all rental properties to ensure homes are “safe, secure and hazard free”. This forms part of “Awaab’s Law”, announced by the previous Government in February in memory of 2-year-old Awaab Ishak who died due to damp and mould in his home. The Bill therefore aims to set clear legal expectations about the timeframes for when repairs must be actioned and homes made safe.
A new invention is the creation of a digital rented sector database. This database will allow Tenants to access information to inform their choices when entering new tenancies. For Landlords, the database will allow them to easily understand their obligations and demonstrate compliance. Think of it as a larger and more informative version of the infamous How to Rent Guide.
The Bill also aims to transition away from costly legal battles between Landlord and Tenant, with more reliance upon a new “ombudsman service” to provide “fair, impartial and binding resolution”.
The final 2 provisions will make it illegal for Landlords to discriminate against Tenants in receipt of benefits or with children when choosing to let their properties; and provides local authorities with additional powers to identify and fine questionable Landlords and Agents.
Haven’t we heard this before?
Now you might be thinking, wasn’t there already a bill to reform Renters Rights? The answer is, well sort of!
The previous Government introduced the Renters Reform Bill which was half-way through its passage through Parliament before it was terminated when Parliament was dissolved for the election.
Safe to say the majority of the previous Bill is helpfully incorporated into Labour’s version, save for some key differences.
The previous Bill famously delayed abolition of Section 21 until vital Court reforms were enacted. However, Housing Secretary, Angela Rayner, briefed recently that Section 21 would be abolished “immediately” so I doubt there will be much delay on this part.
“Awaab’s Law” was also introduced to assist the social housing sector, but Labour’s plans would extend this to the private-rented sector also.
In short, Labour’s version could very well be more radical than many thought.
When will the Bill come to pass?
With Parliament now on recess for the summer and the party conference season approaching in October, we may see an early version of the Bill before Parliament this side of Christmas.
With the Government enjoying a massive majority, and there being cross-party support for reform to the renting sector, it is almost a certainty that the Bill will eventually pass, minus a few minor amendments in the House of Lords.
Remember though that it takes months for a bill to progress through Parliament, and there will likely be a hefty implementation stage of around 12 months, so any meaningful reform will likely not take effect until at least the backend of 2025 if not 2026.
We await the first draft of the Bill with bated breath.
By Leon Freeman
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