Renters' Rights Bill: What is it and what could it change for tenants?
The government plans to ban 'no fault evictions' under section 21 of existing legislation by next summer, ITV News Investigations Editor Daniel Hewitt reports
Legislation to ban no-fault evictions and strengthen tenants' rights has been introduced to Parliament, under plans to “drive out disreputable landlords from the sector”.
The plans are part of a long-awaited Renters' Rights Bill, which could change the landscape of renting.
The bill seeks to stop landlords from banning tenants from keeping pets, scrapping no-fault evictions and ensuring all landlords speedily address hazards and make homes safe.
Housing and planning minister, Matthew Pennycook, said "we have to overhaul the regulation of the private rented sector", telling ITV News that change is "long overdue".
The plans must be approved by MPs and peers, who could propose further changes, before they become law.
Renters' Rights Bill: Labour to make biggest change to private rental market since 1988
Banning 'no-fault' evictions
A ban on "no-fault" section 21 evictions was first put forward under the Conservatives but concern about its impact on landlords and the courts was set to lead to a delay in implementation.
The Conservatives’ Renters (Reform) Bill then ran out of time to progress through Parliament before the July election.
Under the new proposals, a landlord will not be able to evict a tenant without giving a reason - and it will not just be their decision. A court will ultimately judge whether the landlord has a valid reason (which will be defined in law).
Currently, section 21 notices allow landlords to terminate tenancies without giving a reason.But the Renters’ Rights Bill will abolish landlords’ right to ask tenants to leave the property through no fault of the renter’s own.This means, a tenancy can only end if a tenant ends it, unless the landlord has a legally watertight request.
The Labour government says it will go further than previously proposed by banning section 21 evictions for both new and existing tenancies, with research by charity Shelter finding 26,000 households have been evicted through the process since 2019.
Extending Awaab's Law
Awaab's Law was named after the toddler who died after exposure to mould in his family’s social rented home in Rochdale.
Under the proposals, Awaab's Law will be extended to the private rented sector. This will ensure that all renters in England are empowered to challenge dangerous conditions in their homes, such as black mould.
Allowing pets
The Renters' Rights Bill will give all tenants the right to ask to keep a pet in their home.Landlords “cannot unreasonably refuse”, under the proposed rules.
This may not always be the landlords' decision; if a tenant is renting in a block of flats, for example, the landlord may be restricted by the leaseholders' or housing association's rules.
If the landlord does give a tenant the nod to keep a pet, they will be within their rights to ask them to take out pet insurance.
Banning 'bidding wars'
Also included in the reforms is a legal requirement for Landlords and letting agents to publish the required rent for a property in a crackdown on the practice of forcing potential tenants into a bidding process.
Rental bidding wars - which see tenants forced to bid for their properties - will be banned.
Landlords and letting agents will be legally required to publish an asking rent for their property, and they will be banned from asking for any bids above this price.
Ending the blanket ban on renting to benefit claimants and families
The bill seeks to outlaw bans imposed by some landlords on those receiving benefits or with children - a move campaigners have been calling for for years.
Drive to increase standards
A Decent Homes Standard will be applied to the private rented sector for the first time, with the government highlighting that 21% of privately rented homes are currently classified as “non-decent” and more than 500,000 contain the most serious hazards.
The government said good landlords “will benefit from clear regulation” which “will eliminate unfair competition from those who, for far too long, have got away with renting out substandard properties to tenants”.
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Rent hikes
The bill will, for the first time, end arbitrary rent review clauses in tenancy agreements.
Landlords will only be allowed to raise rent once a year at the market rate.
New private rented sector database
A new private rented sector database will also be created to clarify landlords’ obligations, enable tenants to make informed choices and improve councils’ enforcement.
Councils will also be able to use the database to target enforcement where it is needed most.
Councils will have more powers
Councils will also be given greater powers to tackle rogue landlords in a bid to rid the sector of the worst offenders.
Fines for serious offences will be increased and greater enforcement powers will help local authorities tackle poor housing for tenants.
When will the reforms take effect?
This bill is in its infancy and has a long way to go before it becomes law.
It was introduced to Parliament on Wednesday, September 11, and then will wind its way through the Lords. The bill, or parts of it, may be challenged and changed.
Deputy Prime Minister Angela Rayner said: “Renters have been let down for too long and too many are stuck in disgraceful conditions, powerless to act because of the threat of a retaliatory eviction hanging over them.
“Most landlords act in a responsible way but a small number of unscrupulous ones are tarnishing the reputation of the whole sector by making the most of the housing crisis and forcing tenants into bidding wars.
“There can be no more dither and delay. We must overhaul renting and rebalance the relationship between tenant and landlord. This Bill will do just that and tenants can be reassured this government will protect them.”
'A fresh start' to fix private renting
Responding to the bill's publication, Polly Neate, Shelter chief executive, said section 21 “has haunted England’s renters for years” and “11 million of them will breathe a sigh of relief when these unjust evictions are finally consigned to the history books”.
She added: “The Renters’ Rights Bill must be a fresh start to fix private renting. With notice periods so short and more than 60,000 renters forced out of their homes by rent hikes in the past year alone, renters will expect bold action to deliver the security they’ve long been promised – no ifs, no buts.
“If the government is serious about making renting genuinely safer, secure, and more affordable, the Bill must guarantee renters greater protection. Renters need to know they won’t be booted out of their homes by eye-watering rent hikes and the discriminatory practices that push so many into homelessness must be stamped out.”
What do landlords think?
Ben Beadle, chief executive of the National Residential Landlords Association (NRLA), said landlords and renters need certainty and reforms must be fair to both.
He added the end of section 21 evictions “represents the biggest change to the sector for over 30 years” and “sufficient time” will be needed for the sector to prepare.
Mr Beadle said: “Over 4.5 million households will need tenancy agreements updating, letting agent staff and landlords will need to undertake training and insurance and mortgage providers will need to adjust policies and rates.
“None of this will happen overnight and the government needs to publish guidance.
“In addition, ending section 21 will leave the courts needing to hear possession claims where landlords have a legitimate reason.
“The cross-party Housing Select Committee has warned that without reforms to ensure the courts process cases much more swiftly, they risk becoming overwhelmed. This will not serve the interests of tenants or landlords seeking justice.”
He added that the NRLA supports measures to ensure every rental home is of a decent standard, but warned the changes need to be back up by “robust” enforcement by councils.
A Conservative spokesperson said: “Conservatives believe in ensuring choice and freedom, whatever home they live in.
“But new regulation must be necessary and proportionate.
“Otherwise, as it has in Scotland, badly drafted laws will cut supply, forcing up rents and reducing choice for renters.
“We await to see the details of Labour’s proposals and hope they are more coherent and thought-through than their interventions in other policy areas so far.”
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