The Renters' Rights Bill, which will bring significant reforms to the rental sector, passed its third reading in the House of Commons on 14 January 2025, and is expected to be in force later this year.
We have previously covered the main changes to the rental market that the Renters' Rights Bill's is bringing in, once enacted, here, and have been following its progress since it was revived by the Labour government after their election win last summer, as well as the potential impacts to specific sectors such as the build to rent market and student accommodation.
As well as the abolition of section 21 "no-fault" evictions, other changes include the right for tenants to serve notice to quit a tenancy from day one, the introduction of new possession grounds, tackling rental bidding wars and limiting the ability of landlords to increase rents, and extending Awaab's Law to the private rental market to name but a few.
As the Bill now advances to the House of Lords, following the Third reading, the latest amendments include:
- A restriction on the ability of landlords to demand payments of rent more than one month in advance. A breach of this provision could lead to a fine being imposed of up to £5,000 on a landlord or letting agent.
- Preventing guarantors being asked to pay rent following the death of a tenant.
- Protection for students who feel pressurised into signing tenancy agreements months in advance, by preventing the use of Ground 4A (possession of student HMOs) if the tenancy was agreed more than 6 months in advance.
- A new ground for "possession of alternative accommodation provided during redevelopment".
- Fees paid by landlords will fund the creation of the private rented sector Ombudsman.
- Ensuring superior landlords can be liable for Rent Repayment Orders.
Whilst question marks remain over how courts will cope with the expected influx of cases, the Bill is nevertheless expected to come into force this summer.
The Renters' Rights Bill is coming, and is a hugely significant piece of legislation for landlords and tenants alike. Landlords and managing agents should continue to plan, as they no doubt already are, for the effect the changes will have on their business.
