With the Renters Rights Bill having started the Committee Stage this week (from 22nd April), Pauline Carrera- Silva, Lettings Manager at H&H Land & Estates gives an overview of what’s proposed and how it could impact residential lettings going forward.
“The Renters Reform Bill 2022 was initially introduced by the Conservatives, but was not passed before the Government was dissolved. When Labour came into power, they revised it as the Renters Rights Bill 2024, making several amendments along the way. With so many proposed changes here are ten which will have the impact:
1. Tenancy Agreements
• Assured Shorthold Tenancies will cease to exist. Instead, all tenants will be given a Statement of Condition. Although the exact content is yet to be confirmed, it’s expected to mirror the current details of a Tenancy Agreement, including the address, rental amount, names of landlord(s), tenant(s), agent details, and where any deposit is held.
• All tenancies will become Periodic Assured Tenancies, limited to a one-month rolling period. However, tenants will have the right to remain in the property for a minimum of 12 months before a landlord can issue notice. Fixed-term tenancies (e.g., six or twelve months) will no longer exist.
2. Rent
a) In Advance – It will become illegal for landlords to demand rent in advance beyond the rental period. Since all tenancies will be monthly, landlords can no longer require six months' rent upfront. However, tenants may still choose to pay in advance voluntarily.
b) Increases – All rent increases must now go through a Section 13 notice. New tenancy agreements cannot include rent increase clauses. Only one increase per year is allowed, capped at the market rent, and must be given with two months’ notice instead of the current one month. If a tenant believes the increase is unfair, they can appeal to the First-tier Tribunal.
c) Advertised Rents – Landlords or agents may not accept offers above the advertised rent but may consider lower offers.
3. Ending a Tenancy
a) From the Tenant – Notice from tenants will increase from one to two months, in line with the rent due date, and must be in writing. Landlords may accept shorter notice, but are not required to.
b) From the Landlord – Section 21 notices will be abolished. Instead, landlords will need to rely on Section 8 Notices, with some timing changes. For example, a landlord must now wait until a tenant is three months in arrears, and give four weeks' notice before taking court action (replacing the current two months of arrears and two weeks' notice).
Landlords planning to sell the property must give four months' notice, and may not relist the property to let within 12 months. Similar restrictions apply when reclaiming the property for a family member.
4. Pets
Tenants will be allowed to request permission to keep a pet in writing. Landlords or agents must respond within 28 days. While this is not a guaranteed right to keep pets, tenants must be informed upfront if pet insurance is required, and they will be responsible for any associated costs.
Assistance dogs are not classified as pets and are exempt from restrictions.
5. Discrimination
This amendment ensures fair access to the rental market. Landlords may no longer state “No Housing Benefit” or “No Children” in listings, unless there is a legally valid reason such as overcrowding.
6. Property Condition
The Decent Homes Standard, currently only applied to social housing, will now be extended to the private rental sector. This sets a minimum standard for accommodation, including thermal comfort, modern facilities, and overall property condition.
7. Awaab’s Law
This section introduces strict timeframes for repairs.
• General repairs: 14 days
• Health-related repairs (with medical verification): 7 days
8. PRS Database
All landlords will be required to register with a new Private Rented Sector database. This will record landlord and tenant details, along with compliance documents (EPCs, Gas Safety, Electrical Safety Certificates). Non-compliance will result in significant penalties.
9. Redress Scheme
All landlords must join a redress scheme before advertising their property. They must also maintain active membership throughout their letting activity.
10. Penalties
New civil penalties will range from £7,000 for minor breaches, up to £40,000 for repeat or serious offences. In severe cases, landlords may face criminal prosecution or banning orders.
The Committee Stage is expected to last six days, followed by the Report Stage. If progress continues on track, the Bill could complete its passage before the Government’s summer recess in July. If so, the Renters Rights Bill could receive Royal Assent in the autumn, with implementation likely from March or April 2025.”
For further details or to discuss how these changes may affect your property, please contact directly Pauline Carrera- Silva, H&H Land & Estates Lettings Manager on 01228 810799, and select option 2 for lettings.