What is the Renter’s Rights Bill?
The Renters’ Rights Bill (RRB) is a significant piece of legislation for the rental sector with potential for having a huge impact on the UK property market and wider economy. It is no secret that landlords in this sector have had the upper hand over the past few decades and the RRB is set to deliver a 180-degree flip in favour of tenants to provide greater security to tenants and attempt to reduce the level of homelessness in the UK.
Most notably, the RRB intends to eradicate assured and assured shorthold tenancies whilst also seeking to abolish the no-fault eviction procedure laid out under section 21 of the Housing Act 1988 (HA 1988). Instead, periodic tenancies with no fixed term will be granted (any AT/AST in existence will be automatically converted) with the tenant being able to serve notice to terminate within the first 12 months but no such right is given to landlords. Landlords must wait until the first 12 months is up before they can terminate and must give legitimate reasons under the section 8 HA 1988 procedure.
The RRB would also:
- restrict a landlord’s ability to increase rent - not more than once a year and providing tenants with a mechanism to challenge increases at the First-Tier Tribunal;
- implement an ombudsman so tenants are able to escalate issues; and
- introduce a property portal database that all landlords will have an obligation to register with
Finally, good news for those with / wanting a furry friend – landlords cannot unreasonably withhold consent to requests by tenants to keep domestic pets. Landlords will most likely require tenants to take out insurance to cover any damage by pets.
So, where are we now?
The RRB is currently under detailed examination in the House of Lords at the Committee Stage which is a scrupulous line-by-line review and debate over the (what some would consider to be) controversial Bill. There are rumours of an autumn commencement date but, then again, a few months ago there were rumours of a summer commencement date…
With many commenting that an overhaul of His Majesty’s Courts and Tribunal Service is essential for this new landscape to work, perhaps the RRB will be a Christmas present (we didn’t say 2025...) instead.
What are M&R doing?
Mills & Reeve’s specialist residential landlord and tenant team have been assisting new and existing clients with their queries and concerns over the RRB. Please do get in touch with the team if you would like some guidance on these significant changes.
For now, we will continue to monitor the RRB’s progress through the House of Lords and hope to see it in the final stages of Parliament soon.
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