The Renters Rights Bill – What It Means for South West London Landlords

If you are wondering how the new Renters’ Right Bill will affect you as a landlord in south west London, this article covers the latest updates and what to get prepared for.

The Renters’ Rights Bill is new legislation that Labour is introducing, with many similarities to the Conservatives’ Renters’ Reform Bill. The Renters’ Reform Bill was shelved because it was not passed into law in time, prior to Labour coming into government.

However, many of the key reforms in the previous bill will be addressed under the new bill, as Labour has prioritised an overhaul of the current legislation to provide more protection to tenants. This will mean additional requirements for landlords to comply with, and significant changes to various processes affecting the private rental sector.

This guide will help landlords of private rental properties in areas such as Putney to get prepared for the many changes outlined in the first draft of the Renters’ Rights Bill.

What is the Renters’ Rights Bill?

The Renters’ Rights Bill is new legislation that will drive changes to the private rental sector. Prior to the Labour government coming into power, there were longstanding calls for reforms of the private renting regulations.

The Conservatives had started to progress with their proposal for the Renters’ Reform Bill, to address many of the key concerns, including tenant security and housing conditions.

As the bill did not get passed into law before parliament closed for the general election, Labour has since prioritised similar reforms, presenting a 226-page draft of the Renters’ Rights Bill on 11 September 2024.

The new Renters’ Rights Bill has many similarities to the old Renters’ Reform Bill, with some additional and more detailed changes, which we cover in the next sections.

What Does the Bill Mean for Landlords?

The full impact of the bill will become clearer over the coming months but from the information shared so far, landlords will have lots of changes to accommodate. Major reforms include the end of section 21 no fault evictions, anti-discrimination measures and increased minimum standards for living conditions.

Failure to comply with the new legislation could result in financial penalties, so becoming familiar with the key reforms should be high on every private landlord’s agenda. Read on to find out the key points of the Renters’ Rights Bill that have been shared so far:

Our Guide To The Renters’ Rights Bill

With the bill unlikely to come into force any earlier than spring 2025, there is plenty of time for landlords to prepare for the upcoming changes. The overview of bill measures that Labour has published includes:

Section 21 Evictions to be Abolished

Landlords have been waiting to find out Labour’s plans for section 21 evictions and it is no real surprise that the end of section 21 evictions is a top priority for the new government. The plan to abolish section 21 no fault evictions provides greater security for tenants, as landlords will no longer be allowed to evict tenants without an adequate reason.

Periodic Tenancies to Replace Fixed Term Tenancies

Another significant reform outlined in the bill is replacing fixed term tenancies with periodic tenancies. Tenants will be able to provide two months’ notice at any time, including during the first few months of living in the property. Existing fixed terms tenancies will be converted to rolling contracts under Labour’s Renters’ Rights Bill.

Improved Tenants’ Rights to Keep Pets

Previously, landlords could refuse to allow tenants to keep pets in properties, but the new bill will make it illegal for landlords to unreasonably refuse a tenant’s request to keep a pet in their property. Part of the legislation includes that landlords will be able to require tenants to arrange insurance to cover against damage caused by pets. Landlord insurance policies can also include insurance to the private sector to provide cover for pet damage.

New Landlord Ombudsman Service and Digital Database

The proposals in the bill include the formation of a new landlord ombudsman with mandatory membership. There will be an annual fee for membership, which will be linked to a new digital database of landlords. The database will help to bring more transparency around landlords with private rental properties and will help to bring an end to ‘rogue’ landlords.

Decent Homes Standard and Awaab’s Law

The previous government’s changes to social housing legislation included the introduction of the Decent Homes Standard and Awaab’s Law, tackling health issues in social rental properties. The Renters’ Rights Bill carries these requirements over to the private rented sector, including timescales for dealing with mould and damp complaints and other health-related issues.

Changes to Rent Increase Rules

Another key area that the Renters’ Rights Bill is addressing is unfair rent increase practices by landlords. The bill will make it illegal for landlords to encourage bidding wars between prospective private renting tenants. Rent increases will be allowed no more than once per year and any increase must be aligned to market rates. Tenants who believe that a rent increase is higher than the market rate will be able to challenge the proposed increase through a First-tier Tribunal.

Increased Power for Local Authorities

The new bill will provide local authorities with more power to apply civil penalties to landlords who breach their legal responsibilities. Under the new rules, local councils will be able to charge penalties of up to £40,000 for landlords who repeatedly breach the rules. Local councils will also have more power to instruct rent repayment orders for breaches.

New Non-Discrimination Rules

Under the new reforms, the government wants to prevent discrimination against tenants when they apply to live in rental properties. Landlords will not be allowed to discriminate against sections of tenants in their adverts. For example, they won’t be allowed to discriminate against tenants in receipt of benefits or with children.

Changes to Grounds for Possession

With section 21 no fault evictions ending, there will be more protection for tenants in terms of the process for landlords regaining possession of their property. Landlords won’t be able to sell the property within the first 12 months of a tenant living in the home and landlords will need to provide more notice for evicting to sell. The notice for eviction to sell a property increases from 3 months to 4 months.

When Does The Renters’ Rights Bill Become Law?

The Renters’ Rights Bill had its second reading in the House of Commons on 9 October 2024 and still has several further steps to go through before it will become law. It is expected to be passed by spring 2025, and further guidance for tenants and landlords will be published in due course.

While there are some significant changes to prepare for, most of these reforms have been in the pipeline for some time. We offer lettings services to landlords in Putney and surrounding areas, and can help to you to navigate the upcoming changes and stay compliant with the new legislation.

Contact us to find out more about our lettings and property management services.