The Renters Rights Bill
As promised in the First King’s Speech of the new Labour Government, the Renters’ Rights Bill (“the RRB”) was introduced to Parliament on 11 September 2024 by Deputy Prime Minister Angela Rayner. The RRB promises to be the biggest shakeup of the rental sector since the Housing Act 1988. Expect the RRB to pass from the Commons to the Lords within the next few weeks and hit the statute books before next summer.
Minus any amendments from Peers in the House of Lords, here is an outline of the radical changes introduced in the RRB:
Periodic tenancies
Fixed term Assured tenancies will be abolished altogether. Instead, all tenancies will be periodic, meaning that they will automatically “roll” on a monthly/ weekly basis. Tenants will be allowed to remain in their rented homes until they decide to end their tenancy by giving 2 months’ written notice. The Government argues that this gives greater flexibility to the parties.
To mitigate against the risks of both parties being unaware of the terms of a periodic tenancy, there will be a requirement for the Landlord to serve the Tenant with a written statement of terms. Whether this will be a prescribed form, or a compulsory template remains to be seen.
Grounds for possession
The RRB “clarifies and expands” the grounds for possession whilst ensuring that Tenants have enough time to find alternative accommodation.
The most highly publicised introduction is the abolition of Section 21 meaning that a Landlord now must have a valid reason for seeking possession of their Properties.
Like with most possession claims, a court order will be required for a Tenant to vacate a Property. For mandatory grounds, the court must award possession if that ground is met whilst with discretionary grounds, the court can consider if possession is reasonable even if that ground is met; as with the present law.
The RRB allows a defaulting Tenant a period of time to remedy any breach by increasing the mandatory threshold for eviction from 2 months to 3 months arrears for a Ground 8 claim, and also increases the notice period from 2 weeks to 4 weeks.
Landlords are also protected by a set of strengthened possession grounds, such as when a Landlord needs to move into the Property or sell it. Tenants will be protected from eviction during the first 12 months of the tenancy, provided there isn’t a breach. The standard notice period for a ground not associated with a breach will be 4 months as opposed to 2 months.
However, Landlords will not be able to regain possession of their property if they have not protected a Tenant’s deposit or have failed to register their Property on the private rented sector database. Landlords will though, be able to remedy this to eventually gain possession but this may entail further legal proceedings. Therefore, Landlords should ensure that they have robustly protected their deposits or returned existing ones, before seeking possession of the Property.
Any notice period will need to coincide with the end of a rent period. For example, the 4 weeks’ notice period of rent arrears above 3 months would need to end on the final day of the month if rent is paid on the 1st of the month.
A criticism to be made of these reforms is that every possession claim would now need to be heard in Court adding to the already overstretched Court system. Therefore, the Government will create a “Landlord-initiated mediation” to allow for disputes to be resolved before they reach Court.
The Government is also working with the Court to digitalise the possession process further, to make the process “efficient and easier” for Landlords and Tenants to understand.
Rent increases
Rent increases received an overhaul in the RRB. All rent increases will only be lawful if a “Section 13” Notice is served. As with current periodic tenancies, rent will only be able to be increased once yearly and only to the market rent. The Tenant must be given 2 months advance notice of the increase.
If the Tenant believes the rent increase to be excessive, they retain their right to challenge this in the First-tier Tribunal (“the Tribunal”) who will make a determination on the rent increase. The Tribunal will not be allowed to increase rent to above that which the Landlord originally sought, with the new rent figure taking effect from the date of the Tribunal’s decision.
If a case of “undue hardship” is met, the Tribunal will be given powers to delay a rent increase by up to 2 months.
Rent review clauses within tenancy agreements are abolished and Section 13 will be the only legal way to increase rent.
Grounds for Possession
As taken from the “Guide to the Renters’ Rights Bill published by the Ministry of Housing, Communities and Local Government on 26 September 2024
| Ground | Summary of Ground | Notice Period |
| Mandatory Grounds- “the Court must award possession” | ||
| Ground 1- Occupation by Landlord or family | The Landlord or their “close family member” wishes to move into the Property | 4 months This cannot be used in the first 12 months of the tenancy |
| Ground 1A- sale of the Property | The Landlord needs to sell the Property. | 4 months This cannot be used in the first 12 months of the tenancy |
| Ground 1B- sale of the Property under rent-to-buy | The Landlord is a private registered provider of social housing and the tenancy is under a rent-to-buy scheme | 4 months |
| Ground 2- Sale by Mortgagee | The Property is subject to a mortgage and the lender exercises their power of sale | 4 months |
| Ground 2ZA- possession when superior lease ends | The Landlord’s lease is under a superior tenancy that is ending. This can only be used by private registered providers of social housing, agricultural Landlords, a person who holds the dwelling for the purposes of making it supported accommodation or a company majority owned by a local authority | 4 months |
| Ground 2ZB- Possession when superior lease ends | The Landlord’s lease is under a superior tenancy that is ending or has ended. This can only be used if the superior lease was for a fixed term of over 21 years | 4 months |
| Ground 2ZC- Possession by superior Landlord | After a superior tenancy ends, the superior Landlord becomes the Tenant’s direct Landlord and requires possession. This can only be used where the intermediate Landlord was a private registered provider of social housing, agricultural Landlord, a person who held the dwelling for the purposes of making it supported accommodation or a company majority owned by a local authority | 4 months |
| Ground 2ZD- Possession by superior Landlord | After a superior tenancy ends, the superior Landlord becomes the Tenant’s direct Landlord and requires possession. This can only be used where the superior lease was for a fixed term of over 21 years and has ended; or within a 12 month period of the fixed term expiry date if the term has ended early. Of if he superior tenancy comes to an end after the expiry of the fixed term as a result of a valid notice | 4 months |
| Ground 4- Student Accommodation | In the 12 months prior to the start of the tenancy, the Property was let to students. This can only be used by specified educational establishments | 2 weeks |
| Ground 4A- Properties rented to students for occupation by new students | A Property is let to full-time students and the Property is required for new students in line with the academic year | 4 months |
| Ground 5- Ministers of Religion | The Property is used by a Minister of Religion to perform the duties of their office and is required for occupation by a Minister of Religion | 2 months |
| Ground 5A- Occupation by agricultural worker | The Landlord requires possession to house someone who will be employed by them as an agricultural worker | 2 months |
| Ground 5B- Occupation by person who meets employment requirements | A private registered provider of social housing holds the Property for use by Tenants meeting requirements connected with their employment and it is required for that purpose (and the current Tenant does not fulfil those requirements) | 2 months |
| Ground 5C- End of Employment by the Landlord | The Property was let as a result of the Tenant’s employment by the Landlord and the employment has come to an end, or the tenancy was not meant to last the duration of the employment and the Property is required for use by a new employee | 2 months |
| Ground 5D- End of employment requirement | A private registered provider of social housing, including an employment requirement in the tenancy agreement that the Tenant no longer fulfils (i.e- key worker) | 2 months |
| Ground 5E- Occupation as supported accommodation | The Property is let for use as supported accommodation and the current Tenant did not enter the tenancy for the purpose of receiving care, support or supervision | 4 weeks |
| Ground 5F- Property occupied as supported accommodation | The tenancy is for supported accommodation and one of the circumstances set out in the ground, making the accommodation no longer viable or suitable for that Tenant, has occurred | 4 weeks |
| Ground 5G- Tenancy granted for homelessness duty | The Property has been used as temporary accommodation for a homeless household, under s.193 of the Housing Act 1996, and a local housing authority has notified the Landlord that the tenancy is no longer required for that purpose. The Landlord can only use this ground within 12 months of the date of the notice from the local housing authority | 4 weeks |
| Ground 5H- Occupation as “stepping stone accommodation” | A registered provider of social housing or a charity lets to a Tenant meeting eligibility criteria under a certain age at “affordable rent”, to help them access the private rented sector and/or transition to living independently, and the Tenant no longer meets the eligibility criteria, or a limited period has come to an end | 2 months |
| Ground 6- redevelopment | The Landlord wishes to demolish or substantially redevelop the Property which cannot be done with the Tenant in situ. Various time limits and/or notice requirements exist for this ground depending on the circumstances. The Landlord and tenancy must be of the kind listed in the table. | 4 months |
| Ground 6A- Compliance with enforcement action | The Landlord is subject to enforcement action and needs to regain possession to become compliant. | 4 months |
| Ground 7- Death of Tenant | The tenancy was passed on by will or intestacy. Possession proceedings must begin no later than 12 months after death or, if the court directs, after the date on which the Landlord became aware of the death. | 2 months |
| Ground 7A- Severe Anti-Social Behaviour/ Criminal Behaviour | The Tenant has been convicted of a type of offence listed in the ground, has breached a relevant order put in place to prevent anti-social behaviour or there is a closure order in place prohibiting access for a continuous period of more than 48 hours. | No notice period |
| Ground 7B- No Right to Rent | At least one of the Tenants has no right to rent under immigration law as a result of their immigration status and the Secretary of State has given notice to the Landlord of this. | 2 weeks |
| Ground 8- Rent arrears | The Tenant has at least 3 months’ (or 13 weeks’ if rent is paid weekly or fortnightly) rent arrears both at the time notice is served and at the time of the possession hearing. | 4 weeks |
| Discretionary Grounds- “the Court may award possession” | ||
| Ground 9- Suitable alternative accommodation | Suitable alternative accommodation is available for the Tenant | 2 months |
| Ground 10- Any rent arrears | The Tenant is in any amount of arrears | 4 weeks |
| Ground 11- Persistent arrears | The Tenant has persistently delayed paying their rent | 4 weeks |
| Ground 12- Breach of Tenancy | The Tenant is guilty of breaching one of the terms of their tenancy agreement (other than the paying of rent). | 2 weeks |
| Ground 13- Deterioration of Property | The Tenant has caused the condition of the Property to deteriorate. | 2 weeks |
| Ground 14- Anti-Social Behaviour | The Tenant or anyone living in or visiting the Property has been guilty of behaviour causing, or likely to cause, nuisance or annoyance to the Landlord, a person employed in connection with housing management functions, or anyone living in, visiting or in the locality of the Property. Or the Tenant or a person living or visiting the Property has been convicted of using the premises for illegal/immoral purposes, or has been convicted of an indictable offence in the locality. | No Notice Period |
| Ground 14A- Domestic Abuse | A social Landlord wishes to evict the perpetrator of domestic violence if the partner has fled and is unlikely to return. | 2 weeks |
| Ground 14ZA- Rioting | The Tenant or another adult living at the Property has been convicted of an indictable offence which took place at a riot in the UK. | 2 weeks |
| Ground 15- Deterioration of furniture | The Tenant has caused the condition of the furniture to deteriorate. | 2 weeks |
| Ground 17- False statement | The tenancy was granted due to a false statement made knowingly or recklessly by the Tenant or someone acting on their instigation. | 2 weeks |
| Ground 18- Supported Accommodation | The tenancy is for supported accommodation and the Tenant is refusing to engage with the support. | 4 weeks |
The Private Rented Sector Ombudsman
The RRB will create a “Private Rented Sector Ombudsman” Service which all private Landlords in England will be required to join, including those who have managing agents.
Tenants will be able to use the service for free to complain about Landlords’ actions or behaviour. The service promises to be “fair and impartial” with “binding resolutions” for Tenants, with powers to compel Landlords to issue an apology, provide information, take remedial action, and/or pay compensation to Tenants.
For Landlords, the service aims to offer a quick and more “cost-effective” route to resolving complaints, and will offer guidance and support to improve complaint handling.
Civil penalties available to the Ombudsman for breaches by Landlords will extend to up to £7,000 for initial breaches and up to £40,000 or criminal prosecution for continuing or repeated breaches. Tenants will also be able to seek a rent repayment order against their Landlords if the Landlord fails to join the ombudsman service.
Landlords will be bound by the Ombudsman’s decision. Failure to comply may result in the Landlord being expelled from the service and local council enforcement action undertaken. Landlords will though, have a right to rejoin the service in the event of compliance.
There is likely to be an annual fee for Landlords to pay for access to the service. Such fees will be “proportionate and good value” and will be published at a later stage in the RRB.
The Private Rented Sector Database
The RRB also creates a “Private Rented Sector Database” which all Landlords will legally be required to register with. The Landlord’s Properties too will also need to be registered and a penalty will be imposed if a Property is marketed or let without being registered.
The RRB is tailored as a “One Stop Shop” for Landlords to access relevant guidance on their duties and obligations. Guidance will be routinely updated to ensure that Landlords are kept informed of any relevant changes.
For Tenants, the Database provides them with useful information before they decide to rent a Property and throughout the “renting journey”.
If a Landlord fails to register to the database they will be denied possession of their Property except if possession is sought under Ground 7A or Ground 14. Civil penalties will extend to up to £7,000 for an initial breach, and £40,000 and/or a criminal prosecution for successive breaches.
Landlords should expect a fee to register onto the database. Such fees will be “proportionate and good value” and will be published in due course.
Prohibiting rental discrimination
The RRB cracks down on direct and indirect discrimination against Tenants, especially if Tenants have children or are in receipt of benefits.
Restrictive terms to prohibit children from a rented Property will only be permitted if it is a “proportionate means of achieving a legitimate aim”.
Mortgage agreements and leases will be removed to be of “no effect” if they discriminate against the Property’s use by children or those in receipt of benefits.
Insurance schemes will also be amended at the time of renewal or expiry to ensure that any restrictions are removed quickly.
Any breaches will be liable for a penalty to up to £7,000 in compensation. A defaulting party will have the right to appeal the penalty to the First-Tier Tribunal.
Outlawing “bidding wars”
The RRB requires Landlords and Agents to publish an “asking rent” for their Property. This prohibits Landlords from asking for, encouraging or accepting any rent above the asking price.
Penalties for any breaches will extend to up to £7,000.
Renting with pets
The RRB ensures Landlords do not unreasonably withhold consent when a Tenant makes a responsible request to have a pet at the Property.
The Tenant will be given the right to challenge unfair decisions at the Private Rented Sector Ombudsman.
For Landlords, they will be entitled to take out insurance covering pet damage, to ensure that any damage caused by pets can be taken care of. Any reasonable costs associated with taking out insurance will be liable by the Tenant.
Decent Homes Standard
The Decent Homes Standard will now apply to the Private Rented Sector for the first time.
The Standard will not only apply to all tenancies but to residential license agreements too.
Whilst the specific regulations are yet to be published, it is expected to ensure that Properties are let in a “decent” condition.
The Standard empowers local authorities with further powers to issue improvement notices to require Landlords to remedy any failures.
If a Landlord refuses to undertake any necessary repairs, they may face a civil or criminal prosecution. The Tenant will also be entitled to apply to the First-Tier Tribunal for a rent repayment order.
Civil penalties will extend to £7,000 in the most serious cases.
Awaab’s Law
Following the death of 2-year-old Awaab Ishak due to exposure to toxic mould in his social rented home, “Awaab’s Law” will now be extended into the Private Rented Sector.
The RRB allows Tenants to challenge dangerous conditions in their Properties and require all Landlords to take “swift action” to make sure their homes are safe.
The regulations are expected to set out requirements in due course, but these are expected to cover damp and mould and specify a time for when a Landlord must carry out works or investigations.
If a Landlord breaches these requirements, the Tenant will be given a right to bring a claim of breach of contract in Court against the Landlord, or to escalate the claim to the Private Rented Sector Ombudsman.
Rent repayment orders
Lastly, if a Tenant believes their Landlord has committed a “listed offence” under the RRB, they will have the right to request a rent repayment order from the First-Tier Tribunal.
The maximum amount of rent a Landlord can be ordered to pay will be increased from 12 months to 24 months.
The RRB also extends the period of time in which a Tenant can apply for an order from 12 months to 24 months after the breach occurs.
By Leon Freeman
Disclaimer: The content of any article posted on this website is for general information only and shall not be deemed to be, or constitute legal advice on any general or specific matter.