How the Renters’ Rights Bill will affect PRS landlords

Landlords have another battle on their hands with news that the Renters’ Rights Bill will pick up where the Renters (Reform) Bill failed to deliver.

Despite a 2019 manifesto pledge, the RRB was binned by the Conservatives after Rishi Sunak called a General Election.

Now Labour is promising to ‘take action where the previous government has failed’ on the protection for renters.

Below, we give details of what landlords can expect from the new legislation.

‘Everyone can grow up in secure housing’

Prime Minister Sir Keir Starmer said: “Too many people currently live with the threat of insecurity and injustice, and so we will make sure everyone can grow up in the secure housing they deserve.

“We will introduce tough new protections for renters, end no-fault evictions and raise standards to make sure homes are safe for people to live in.”

The Labour says that more than 11 million renters in England face constant anxiety because they could be evicted with little warning and for no reason.

It adds that this fear traps many tenants in poor-quality housing because they’re afraid to complain about being kicked out in retaliation.

‘Contribution made by responsible landlords’

The Labour Party says: “We value the contribution made by responsible landlords who provide quality homes to their tenants and believe they must enjoy robust grounds for possession where there is good reason to take their property back.

“However, the Government is determined to level decisively the playing field between landlord and tenant by providing renters with greater security, rights and protections and cracking down on the minority of unscrupulous landlords who exploit, mistreat or discriminate against tenants with bad practices such as unfair rent increases intended to force tenants out, and pitting renters against each other in bidding wars.”

‘Transform the experience of private renting’

It goes on: “The Renters’ Rights Bill delivers our manifesto commitment to transform the experience of private renting, including by ending Section 21 ‘no-fault’ evictions – we will take action where the previous government has failed.

“The Bill will give renters much greater security and stability so they can stay in their homes for longer, build lives in their communities, and avoid the risk of homelessness.”

Labour also says the PRS must provide flexibility for those who want it, and that too many renters are ‘being exploited by a minority of unscrupulous landlords’.

Challenges faced by millions of private renters

The government says this Bill will tackle the challenges faced by millions of private renters in England, including 1.4 million families with children and 444,000 households with over-65s.

In 2023, ‘no-fault’ evictions threatened a record 25,910 families with homelessness, while 2,682 were evicted – a worrying 19% increase in just a year.

The government also points to soaring rents which have jumped from a 2% annual growth to 9% in March.

That rise means tenants, on average, spend 38% of their income on rent, compared to 21% for homeowners and 27% for social housing tenants.

Also, one million private rented homes are considered non-decent, and more than half a million have serious health hazards like damp and mould.

What is planned under the Renters’ Rights Bill?

To help private landlords understand what is planned under the Renters’ Rights Bill, here are the full details published by the government:

• Abolishing Section 21 ‘no-fault’ evictions, removing the threat of arbitrary evictions and increasing tenant security and stability. New clear and expanded possession grounds will be introduced so landlords can reclaim their properties when they need to.
• Strengthening tenants’ rights and protections, for example we will empower tenants to challenge rent increases designed to force them out by the backdoor and introduce new laws to end the practice of rental bidding wars by landlords and letting agents.
• Giving tenants the right to request a pet, which landlords must consider and cannot unreasonably refuse. Landlords will be able to request insurance to cover potential damage from pets if needed.
• Applying a Decent Homes Standard to the private rented sector to ensure homes are safe, secure and hazard free – tackling the blight of poor-quality homes.
• Applying ‘Awaab’s Law’ to the sector, setting clear legal expectations about the timeframes within which landlords in the private rented sector must make homes safe where they contain serious hazards.
• Creating a digital private rented sector database to bring together key information for landlords, tenants and councils. Tenants will be able to access information to inform choices when entering new tenancies. Landlords will be able to quickly understand their obligations and demonstrate compliance, providing certainty for tenants and landlords alike. Councils will be able to use the database to target enforcement where it is needed most.
• Supporting quicker, cheaper resolution when there are disputes – preventing them escalating to costly court proceedings – with a new ombudsman service for the private rented sector that will provide fair, impartial and binding resolution, to both landlords and tenants and reducing the need to go to court.
• Making it illegal for landlords to discriminate against tenants in receipt of benefits or with children when choosing to let their property – so no family is discriminated against and denied a home when they need it.
• Strengthening local councils’ enforcement powers. New investigatory powers will make it easier for councils to identify and fine unscrupulous landlords and drive bad actors out of the sector.

Share This Article