Renters' Rights Bill

Contents

  1. Overview
  2. Key changes
  3. Other changes
  4. More information

Overview

New rental laws are coming soon. We expect the Bill to become law this summer.

There are big changes that landlords and tenants need to know about.

The Council can take enforcement action if landlords do not comply with the new law, including fines or criminal prosecution.

Key changes

Landlords and tenants will no longer agree fixed tenancy periods

These are called assured shorthold tenancies. All tenancies will be monthly periodic assured tenancies with no end date.

On a date that has not been decided yet, the new tenancy system will apply to all private tenancies.

Existing tenancies will convert to the new system.

Any new tenancies signed on or after this date will be governed by the new rules.

The new tenancy system will apply to Councils and housing associations at a later date.

If there is no reason for a landlord to take back a property (known as grounds for possession), tenants can stay in their home until they decide to end the tenancy themselves by giving two months' notice.

Abolishing Section 21 notices (no fault evictions)

Landlords can only end tenancies in specific situations set out in law, such as:

  • If tenants are in rent arrears
  • If tenants cause anti social behaviour
  • If tenants cause damage to a home
  • If the landlord needs to sell

The possession grounds of a landlord wanting to sell or have family live at the property cannot be used during the first twelve months of a tenancy. Landlords must give four months' notice to use these grounds. If used, the property cannot then be let again for twelve months.

There is a new possession ground for landlords renting to students in HMO. This is so they can seek possession in advance of the next academic year.

Rent

Rents can be increased once a year to the market rate. This is the price that you would get if the property was newly advertised to let. If a tenant believes the rent increase is above the market rate, they can complain about it by applying to the First Tier Tribunal. They must do this before the start date of the proposed new rent.

Landlords and agents cannot ask for or accept offers above the advertised rent for a home.

Limit rent in advance. Landlords will be banned from charging or accepting more than one month's rent upfront.

Pets

Landlords cannot unreasonably withhold consent when a tenant asks to have a pet.

Landlords can require insurance covering pet damage. 

The government will publish guidance before the new rules come into force.

Refusing to rent

It will be against the law for landlords and agents to refuse to rent to people who:

  • get Universal Credit, Housing, or Disability benefits
  • have children

Landlords can still refuse an applicant if they believe they will be unable to afford the rent, or would be an unsuitable tenant. This should be judged on a case by case basis.

Tenancy Agreement

All tenants should be given a written tenancy agreement.

Other changes

The government have not yet set a date for their introduction of these changes.

Private Rented Sector Landlord Ombudsman

  • All landlords must pay to join, including those who use a managing agent. A fee has not been set yet.
  • Landlords will be told the deadline by which they will need to sign up.
  • Tenants will be able to use the service for free to complain about a landlords' actions or behaviours.
  • The Ombudsman will have powers to make landlords give an apology, provide information, put something right, and/or pay compensation.
  • Landlords must obey ombudsman decisions.

Private Rented Sector (PRS) Database

  • All landlords must pay to join, including those who use a managing agent. A fee has not been set yet.
  • Landlords will be told the deadline by which they will need to sign up.
  • The database will list the name and contact details for a landlord, homes they manage, and details of any past offences as a landlord.
  • Guidance will set out landlord and tenant responsibilities.
  • Landlords must register on the database before a property can be marketed or let.

Decent Home Standard

  • Privately rented homes will need to meet the same Decent Home Standard as Councils and Housing Associations. These are minimum standards of quality and repair.
  • Any landlord failing to meet the Decent Home Standard will be unable to let the home out and potentially must refund rent to their tenant. This is to ensure renters will have safe, secure and hazard free homes.

Awaab's Law

This sets clear timescales for landlords to investigate and fix serious problems with damp and mould and other hazards so that rented homes are safe. Timescales have not been published yet.

Councils and Housing Associations will need to comply with this as well.

More information

You can read more about the Renters Rights Bill on GOV.UK.

You can see the entire bill on the House of Lords Library.