The Renters’ Rights Bill proposes radical change to the housing law landscape and is likely to have a significant impact across both the private and social rented sectors.
Read moreThere is no doubt about the fact that the Renters’ Rights Bill (the Bill) proposes radical change to the housing law landscape and is likely to have a significant impact across both the private and social rented sectors.
The Bill describes itself as a Bill “to make provision changing the law about rented homes, including provision abolishing fixed term assured tenancies and assured shorthold tenancies; imposing obligations on landlords and others in relation to rented homes and temporary and supported accommodation; and for connected purposes.”
Here, experienced housing lawyer Josephine Morton explores the Bill and highlights key provisions for both landlords and tenants.
When will the Renters’ Rights Bill be implemented?
The Bill continues to make its way through parliament and is currently at the committee stage of the House of Lords, awaiting a third reading in the House of Lords before receiving Royal Assent.
While there is no confirmed timescale, it’s anticipated that the Bill will receive Royal Assent during Spring 2025.
The Government’s intention is to introduce the new statutory regime for the private rented sector (PRS) first and in one stage. On the implementation date, the new regime will apply to all private tenancies — whether new or existing.
The implementation date is not yet known, but the government guidance (updated on 16 January 2025) states: “We will provide the sector with sufficient notice of the system taking effect, and work closely with all parties to ensure a smooth transition.”
Implementation for the private Registered Provider (PRP) sector will follow at a later date. First of all, the Government intends to update its Direction to the Regulator of Social Housing (the Regulator) so that the Tenancy Standard can be updated. This requires a statutory consultation process.
The date of implementation in the PRP sector is therefore currently unknown, but it will be after the Bill has been implemented in the PRS sector.
What is included in the Renters’ Rights Bill?
The Bill is 250 pages, with five parts and six schedules, as follows:
- Part 1 — Tenancy reform
- Part 2 — Residential landlords
- Part 3 — Decent homes standard
- Part 4 — Enforcement
- Part 5 — General
- Schedule 1 — Changes to grounds for possession
- Schedule 2 — Amendments relating to Chapter 1 of Part 1
- Schedule 3 — Amendments connected with landlord redress scheme
- Schedule 4 — Decent homes standard
- Schedule 5 — Financial penalties
- Schedule 6 — Application of Chapter 1 of Part 1 to existing tenancies: transitional provisions
Key provisions under the Renters’ Rights Bill
Some of the key provisions for both landlords and tenants under the Renters’ Rights Bill are likely to be as follows:
The abolishment of fixed term tenancies (Section 1)
Tenancy agreements will operate as periodic tenancies, with the period of the tenancy being equivalent to the rental period and cannot exceed one month.
The abolishment of assured shorthold tenancies (Section 2)
This will mean no more starter tenancy agreements, at least as we know them now. It may be that an assured periodic tenancy can incorporate some form of probationary period, but guidance will need to be awaited from the Regulator and regard will need to be had to the Tenancy Standard (which will require amendment).
The introduction of new grounds for possession (Schedule 1)
There will be new grounds for possession inserted into Schedule 2 of the Housing Act 1988. These include the following grounds in relation to supported accommodation:
- Grounds 2ZA and 2ZB — Available to Registered Providers where a superior landlord has given a valid notice to terminate the lease within a 12-month period, or where a fixed term is expiring within 12 months.
- Ground 5E — The dwelling is for use as supported accommodation and the current tenant didn’t enter the tenancy for the purpose of receiving care, support or supervision.
- Ground 5F — The dwelling is for supported accommodation and one of the circumstances set out in the ground make the accommodation no longer suitable or viable for the tenant in situ.
- Ground 5H — Available to Registered Providers in respect of stepping stone accommodation where a tenancy is let at an affordable rent pursuant to eligibility criteria and those criteria are no longer met.
- Ground 18 — “The tenancy is of supported accommodation and the tenant has unreasonably refused to co-operate with the person providing support services with regard to those services”.
Amendments to existing notice periods pursuant to Section 8 of the Housing Act 1988
In some cases, the notice period is shortened from the current notice period (e.g. from one month to immediate notice under Ground 7A — the absolute ground for possession) and is lengthened in other cases (e.g. from two weeks to four weeks under Grounds 8, 10 and 11 — rent arrears). The timescale for submitting cases into court following service of a Section 8 notice may therefore be extended, albeit not significantly.
Shared ownership leases
Section 33 introduces a new paragraph to Schedule 1 of the Housing Act 1988, which will prevent fixed term tenancies of more than 21 years’ being an assured tenancy. The implication is that for any shared ownership leases, a landlord will no longer be able to rely on the grounds for possession pursuant to Schedule 2 of the Housing Act 1988 to seek possession (e.g. on grounds of rent arrears) and will instead need to rely on forfeiture proceedings instead.
Rent increases
The PRS will no longer be able to rely on contractual provisions within a tenancy agreement to increase rent but will instead need to follow the statutory procedure in Section 13 of the Housing Act 1988. This requires a prescribed form of notice to increase rent and a right of challenge for a tenant in the First Tier Tribunal. For the PRP sector, landlords will still be able to rely on contractual provisions within a tenancy agreement for low-cost tenancies. Anything else (e.g. market rent tenancies) will be caught by the Section 13 procedure.
Housing conditions and repairing obligations
There will be a new Section 10C and 10D inserted into the Landlord and Tenant Act 1985 to imply repairing obligations into licence agreements regarding hazards. This essentially extends the application of Awaab’s law into licence accommodation (although the underlying regulations to bring Awaab’s law into force have not yet been implemented).
How can landlords prepare for the Renters’ Rights Bill?
Landlords will need to prepare for the Bill becoming law and this will no doubt include a review of existing tenancy agreements, policies and procedures.
However, the Bill is still making its journey through parliament and could be subject to further change before we see it in its final form.
The Government needs to further consult with the Regulator before the Bill is implemented in the PRP sector. It’s likely that the Regulator will issue guidance for PRPs and will, at the very least, need to update the Tenancy Standard.
The government guidance is also a helpful reference point and continues to be updated.
If you need expert legal advice to ensure compliance with the Renters’ Rights Bill, our dedicated housing team is one of the largest in the UK and we truly understand the constitutional, regulatory and grant funding regimes in which landlords operate.
Talk to us by sending an email to hello@brabners.com, calling 0333 004 4488 or completing the contact form below.
Josephine Morton
Josephine is a Partner and the joint head of our housing team, leading our housing litigation sub-team.
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