Date Published 19 August 2024
With the announcement from Labour of the new Renters Rights Bill, international legal practice Osborne Clarke is warning the new government to give clarity to the measures coming into place. Osborne Clarke has stated that the minimal amount of information shared about the proposed bill by the government in the King's Speech and subsequent official documents.
Labour has promised in their Renters Right Bill to abolish Section 21 notices ‘immediately' upon election, but there is minimal information about the bill and no visible progress on taking it through Parliament to receive royal assent. Due to the amount of attention that the Reform has been getting though, this may help to speed up its progress.
The possibility of the Renters Right Bill incorporating measures to eliminate fixed-term assured shorthold tenancies and implementing rolling periodic tenancies, thereby granting tenants greater flexibility, remains uncertain. This proposal was initially put forward in the Conservative's Renter's (Reform) Bill, but raised concerns among rental operators due to its potential impact on their operations without fixed-term tenancies.
The proposed Bill is anticipated to incorporate the cessation of utilizing Section 21, as well as implementing new and broader criteria for landlords to reclaim possession of a property through Section 8. Additionally, it is probable that the Bill will introduce a decent home standard similar to those in social housing and simplify the process for tenants to have pets.
Osbourne Clark has warned: 'Clearly, the rental market is poised for significant change. The government will need to be mindful to ensure they do not spark a slew of evictions under any transitional provisions.'
Hopefully when the Autumn Budget comes in at the end of October, we will see more details on the Renters Rights Bill. This will also be the first Budget from the new Labour Government.
