Renters Reform Bill 2024 is a significant draft legislation aimed at protecting the rights of tenants and landlords, as well as a shout out against discriminatory red flags in the system.
One of the worst fears of a person is being homeless. According to London assembly, section 21 evictions have driven a 52% rise in homelessness across England. While in many cases there were no breach of contract, no undue arrears and no anti-social behaviour. Further, a larger number of people were made to move on due to rent increase and discrimination issues.
In contrast, Renters Rights Bill 2024 aims to put an end to the ongoing rental crisis in Uk, by removing every unfair grounds on which bad tenants and landlords are exploiting the private rental sector.
What is the Renters Reform Bill 2024?
It is a draft legislation which was proposed on 11 September 2024 in Parliament of England, aimed to close loopholes in the private renting sector, particularly securing tenants rights.
Since the current legislation of housing act 1988, Renters Right act is being encouraged as a much welcomed change awaited by renters and could provide fair rights to both tenants and landlords.
Quick Highlights on Renters Rights Bill :
The following are the key talking points discussed in the draft legislation:
- Abolishing section 21 that is no false eviction unless on mandatory grounds.
- Bidding wars are over. No agent and landlord can ask for rent over the advertised rate.
- Tenants can keep pets with insurance being carried and landlords have refusal rights only on valid reasoning.
- Assured shorthold tenancies will be over and charged as periodic tenancies.
- Changes in rent arrears can only be made annually.
- Both tenants and Landlords have to serve a two month notice if one party decides to quit the rental agreement.
- The ‘Decent homes standard’ would be applied to all private rental housing, required by landlords before renting out their properties.
Renters Reform Bill Update: When will the Renters Reform Bill become Law?
Currently the law is in its secondary phase in the House of Lords where further debates and amendments have to be made. It is expected to become law in April 2025.
For more Renters Right Bill update visit Parliament bills uk.
Renters Reform Bill 2024: The Impacts on Tenants and Landlords.
As per the government, these significant changes can positively impact the rental conditions and safeguarding rights of around 11 million tenants in UK.
Let’s dive into what challenges and opportunity are at the corner for tenants and landlords:
Renter Reform Bill Changes For Tenants:
- Right to challenge poor housing condition:
Tenants would have access to a better housing condition before renting a place that meets minimum housing standards as per law. Meanwhile, all the necessary repair issues need to be fixed by landlords under a certain period in that rented space. But if the provider is unresponsive or refuses, renters possess the right to take legal action against them.
However, one should note that tenants are also responsible to maintain the property. Any intentional harm caused by renters would go beyond the grounds of asking provisions from the renter.
- Removal of Housing insecurity by false evictions:
After noticing record eviction in the past few years the abolishment of section 21 notice ( ‘No-fault eviction’) can bring more fairness to the system. Many of the renters were made to move-on due to unfair reasons such as discrimination, rivalry or the ask for increased rent rates. Although renters could appeal the court, but it was an uphill battle for them against landlords.
This new bill thus aims to back security and stability of renters and to crackdown on landlords who are exploiting the private renting sector with the access use of power.
- Bridging communication gap with landlords through periodic tendency:
It is to note that Section 21 notice applies to all Assured Shorthold Tenancy( AST). With the end of AST, all rental agreements would become periodic tendencies. Which means a sight of relief and housing security for tenants, with no reasonless evictions anymore. More flexibility would be given to them as they can mutually decide on tenancy periods and terms either annually, weekly or monthly with the lender party.
- Tenants right to keep pets:
Another significant change has been made by initiating pet friendly rental homes. Tenants have the right to request pet ownership from their prospective landlords. The refusal can only be made on valid reasons such as threat to neighbours or pet without insurance. This indeed quite a welcoming gesture for renters which puts an end to the automatic ‘no response’ on keeping pets by landlords.
5) Empowering middle class renters with affordable housing:
The Bill aims to protect under waged tenants by prohibiting bidding wars. During high demands, tenants compete with one another to agree on higher rents than the advertised amount. By putting an end to bidding wars, price fluctuations can be stabilised ensuring fair-priced housing can be equally accessible to all tenants.
Renters Reform Bill Changes for Landlords
- Property maintenance Under Awaabs law:
Maintaining a healthy living condition for tenants is one crucial aspect of Awaab’s Law. If they address any issue which poses risk to their health and well-being such as damp and mould within premises, the landlord has to fix it. Investigation should be carried out within 14 days of reporting. Afterwards,repairs are made in a period of 7 days or more serious conditions may require a quick fix within 24 hours.
- Ban of ‘Section 21’ notice for renters eviction:
Over the years renters have been taken an undue advantage of section 21 notice to force out the tenants from their properties. This is one of the reasons that lead to a massive rental crisis in uk. Thus, the measure introduced aims to create fairgrounds for both parties. Instead, the landlord can issue a section 8 notice for eviction. In which they have to mention a valid reason for asking the renter to move on.
- The take on rental discrimination and bidding wars:
Any sort of discrimination and bidding is not allowed in the private renting sector. Yet, it is a practice that is widely followed and offerings are more than the advertised price. Furthermore, same-race applicants are ahead in the race of tenants screening process. This bill can clamp down on the legal violations and on the on-going abuse by bad landlords and renting agents. For strict adherence Mathew Pennycook has proposed that the violators would have to pay a massive 7000 pounds if caught red handed.
- Financial security for Landlords on pet ownership:
Besides the Renter Right act giving freedom of pet ownership to renters, it equally grants protection rights to landlords as well. To safeguard their properties, they may ask renters to carry out pet insurance. Also additional costs could be charged if the cost of repairs exceeds the insurance and deposit amount.
What Landlords need to prepare for? A challenge on the way!
The scrapping of ‘section 21 notice under the bill can adversely affect landlords’ income stream . Around 70% of them believe that this could make it harder to take back possession of their properties. This could be true as the costs for dealing with courts and agents might rise for them.
Thus, hiring property management services can help ensure compliance with legislation. At surveying corp we deal with efficient property management services to ensure legal compliance and maximum tenant satisfaction.
It is being called as one in generation reform that is going to transform the private renting sector. It aims at retrieving undue powers from landlords and create a fairground by giving equal protection to tenants
A: Key changes include the removal of Section 21 or ‘No-fault evictions’ and introduction to decent housing standards.
A: Landlords will face stricter regulations, including new obligations to maintain properties and potential challenges in managing tenancies. Moreover, periodic tendency can create an uncertain environment as renters can terminate the contract anytime leaving the property vacant.
A: Depending upon the perspective. Tenants may see it as an opportunity with secure rights and interests. For landlords, new regulations could be challenging to cope with and may require additional costs as well.
There has been no official declaration of the date. But from the pace of proceedings it is expected to be implemented as a bill by spring 2025. However, a little delay has been seen in the month of February to water down the ban on section 21 notice.
Conclusion:
The fate of the Renters Reform Bill 2024 remains undecided. With heated debates focused on section 21( ‘No-fault eviction’) the Labour Party could usher in major changes if the bill secured royal assent.
