Date Published 11 September 2024
The Government has announced its intention to introduce the Renters' Rights Bill to Parliament today, which will prohibit no-fault evictions and in-contract rent increases. The new legislation will eliminate Section 21 ‘no-fault' evictions for both new and existing tenancies and will also put an end to blanket bans for individuals on benefits or with children. A statement from the NRLA (National Residential Landlords Association) issued later yesterday afternoon said it is vital that the Bill works and is fair to both tenants and landlords. Ben Beadle (Chief Executive at NRLA) said: 'The end of Section 21, ‘no explanation' repossessions represent the biggest change to the sector for over 30 years. Once the Bill is passed, it is vital that sufficient time is provided to enable the sector to properly prepare. Over 4.5m households will need tenancy agreements updating, letting agent staff and landlords will need to undertake training and insurance and mortgage providers will need to adjust policies and rates. None of this will happen overnight and the Government needs to publish guidance.'
The Ministry of Housing, Communities and Local Government stated this morning that the Bill will bring Awaab's Law into the private rented sector, allowing tenants to challenge unsafe living conditions, and will enforce the Decent Home Standard for rental properties.
Additionally, landlords will no longer be able to implement rent increases during a tenancy agreement, and will only be permitted to raise the rent once a year, up to the market rate. The announcement also confirmed the prohibition of rental bidding wars, with landlords and letting agents now required by law to disclose the asking rent for their property and prohibited from soliciting, encouraging, or accepting bids exceeding this price.
The announcement stated that a new database will be created for the Private Rented Sector. This will help landlords understand their responsibilities and give tenants the information they need for new rentals, as well as also helping councils focus on enforcement where it is needed most. Earlier this week, Housing Minister Matthew Pennycook met with landlord and tenant groups and promised to work with them as the Bill moves forward. Housing Secretary Angela Rayner said, 'Renters have been let down for too long and too many are stuck in disgraceful conditions, powerless to act because of the threat of a retaliatory eviction hanging over them. Most landlords act in a responsible way but a small number of unscrupulous ones are tarnishing the reputation of the whole sector by making the most of the housing crisis and forcing tenants into bidding wars. There can be no more dither and delay. We must overhaul renting and rebalance the relationship between tenant and landlord. This Bill will do just that and tenants can be reassured this Government will protect them.'
If this is something that eventually does come into effect, we will ensure to keep our landlords updated and be more than happy to be of any assistance.
