Renters’ Rights Bill progresses in parliament

Key changes proposed for landlords and tenants as landmark bill advances. Tune into this Renters’ Rights blog to keep up to date as more detail is released over the coming months.

Monday 27 January 2025 – Renters’ Rights Bill passes through first reading

The Renters’ Rights Bill has passed through its first reading in the House of Lords. By any measure, the Bill – designed to give greater rights and protections to those renting their homes – is moving at pace. The final stage is Royal Assent, at which point it becomes law, and this is widely expected to happen in Spring this year.

An amendment to the Bill added during committee stage was passed during the third reading in the House of Commons. This included a limit on rent in advance a landlord can ask for – to one month’s rent, and an additional 5-6 week’s rent as security.

Friday 17 January 2025 – update

The Renters Rights Bill has passed through its third reading in the Commons. This confirmed the amendment that landlords will be banned from asking for more than one month’s rent in advance. The Bill will now be debated in the House of Lords. By any measure, the Bill – designed to give greater rights and protections to those renting their homes – is moving at pace. The final stage is Royal Assent, at which point it becomes law, and this is widely expected to happen in Spring this year.

Wednesday 23 October 2024

The Renters Rights Bill passed through committee stage in the House of Commons in November, and is now in report stage. It will have one more reading (third reading) in the Commons, and this is expected to be completed around the end of January 2025. The Bill then be debated in the House of Lords. By any measure, the Bill – designed to give greater rights and protections to those renting their homes – is moving at pace. The final stage is Royal Assent, at which point it becomes law, and this is widely expected to happen in 2025.

Many of the changes proposed in the bill were included in the Renters’ Reform Bill which nearly came into force under the previous Conservative Government, but there are a few additional proposals in this version of the bill, which the 2.8 million landlords and more than 10 million renters in the UK need to know about.

During the debate for the second reading of the bill, Angela Rayner, Secretary of State for Housing, said good landlords had nothing to worry about, and the legislation would eliminate ‘bad apples’ in the sector. She added: “this bill will protect tenants… but we’re in listening mode as well.”

The key features of the bill are: 

• Abolish Section 21 ‘no fault’ evictions – moving to periodic tenancies with no end dates. The grounds for landlords to reclaim their properties will be reformed and expanded, including the landlord needing property for personal use or if putting property up for sale, giving four months’ notice to renters. In terms of rent arrears, these must equate to at least three month’s rent (from two months under existing legislation) before possession can be sought under the revised provisions
  
• Landlords can increase rents once a year to the market rate. Renters will be able to challenge any excessive above-market rental increases, via First-Tier Tribunal
  
• A Private Rented Sector Database: To help landlords understand their legal obligations and demonstrate compliance, and provide better information to renters.
  
• New Private Rented Sector Ombudsman to provide quick impartial resolution to renters’ complaints
  
• Pets: Landlords must consider and cannot unreasonably refuse a renters’ request for a pet in a property
  
• Decent Homes Standard will be applied to private rented sector
  
• ‘Awaab’s Law’ will also apply – setting clear legal expectations about the timeframes within which landlords in the PRS must take action to make homes safe
  
• It will be illegal to discriminate against renters with children, or those receiving benefits
  
• No rental bidding:Landlords and agents cannot ask for or accept bids made above the asking rent for the property
  
• New enforcement and investigatory powers for councils, who will be able to apply civil penalties against landlords who flout rules – ranging from £7,000 for an initial or minor non-compliance to £40,000 for persistent or repeated non-compliance. 

To read the Government’s Guide to the Renters’ Rights Bill in full, click here. 

The information provided in this report is the sole property of Cluttons LLP and provides basic information and not legal advice. It must not be copied, reproduced or transmitted in any form or by any means, either in whole or in part, without the prior written consent of Cluttons LLP. The information contained in this report has been obtained from sources generally regarded to be reliable. However, no representation is made, or warranty given, in respect of the accuracy of this information. Cluttons LLP does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this publication.

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