New Renters’ Rights Bill: A Game Changer for Landlords and Tenants

The introduction of the proposed Renters’ Rights Bill by the Labour Government marks a significant shift in the rental housing landscape in England. As a law firm specialising in property disputes, we understand the profound implications this bill will have on both landlords and tenants.

Key Changes and Their Impact

• End of No-Fault Evictions: The bill proposes an outright ban on no-fault evictions, providing tenants with greater security and stability. This change will empower tenants to challenge disrepair and poor treatment without the fear of sudden eviction. For landlords, this means a need for more stringent tenant screening processes and a focus on maintaining good tenant relations.
• Regulation of Rent Increases: Landlords will only be able to raise rent annually at market rate. This regulation aims to prevent sudden, unaffordable rent hikes, offering tenants more predictable housing costs. Landlords will need to stay informed about market rates and ensure compliance to avoid legal repercussions.
• Mandatory Repairs and Decent Homes Standard: The bill will enforce a timescale for landlords to repair properties and introduce a decent homes standard for the private rented sector. Given that 21% of privately rented homes are currently deemed ‘non-decent,’ landlords will need to prioritise property maintenance to comply with these new standards, which may lead to increased operational costs.
• Ban on Discriminatory Practices: Landlords will no longer be able to block tenants on benefits or with children. This inclusive approach aims to provide equal housing opportunities for all. Landlords must adjust their tenant selection criteria to comply with these anti-discrimination rules.

What does this mean for landlords?

Many landlords are already keeping their rental properties in good condition and reasonable repair, not least to preserve their assets. Those landlords should not struggle to meet the new requirements. However, 20% or so of landlords are believed to be non-compliant and this proposed legislation is targeting them.

The Government proposes to balance out the ban on no-fault evictions with an extension of grounds for obtaining your property back. The proposed grounds include where a landlord wants to sell a property or where the landlord or a family member wants to move in. The usual grounds for non-payment of rent, breach of tenancy and antisocial behaviour (among others) will still be available as reasons for taking a property back.

What do I need to do as a landlord?

The Renters Rights Bill represents a comprehensive overhaul of the rental market, aiming to balance the rights of tenants and landlords. As experts in property disputes, we advise landlords to stay informed and proactive in adapting to these changes to ensure compliance and maintain positive tenant relationships.

For further advice and assistance, please contact our property dispute department.