The Renters’ Rights Bill will give renters much greater security and stability so they can stay in their homes for longer without the risk of homelessness.
The bill is in its final reading stage and will likely be made law later in 2025 or early in 2026. It will then be known as the Renters Rights Act.
The main points of the Renters’ Rights Bill are to:
- Abolish section 21 evictions and move to a simpler system where all assured tenancies are periodic – providing security for tenants and allowing them to challenge poor practice, poor housing conditions and unfair rent increases without the threat of eviction.
- Ensure possession grounds are fair to landlords and tenants, giving tenants more security, while ensuring landlords can recover their property when reasonable. The bill introduces new safeguards for tenants, giving them more time to find a home if landlords evict to move in or sell, and ensuring unscrupulous landlords cannot misuse grounds.
- Tenants will be able to appeal excessive above-market rents which are designed to force them out of their property. Landlords will still be able to increase rents to market price for their properties and an independent tribunal will make a judgement on this, where required.
- Introduce a new Private Rented Sector Landlord Ombudsman that will provide impartial and binding resolution for tenants’ complaints about their landlord.
- Create a Private Rented Sector Database to help landlords understand their legal obligations and demonstrate compliance. There will also be better information available to tenants so that they can make informed decisions when entering into a tenancy agreement. Landlords will need to be registered on the database in order to use certain possession grounds. Erewash Borough Council will also be able to target enforcement activity where it is needed most.
- The landlord must consider and cannot unreasonably refuse a tenants’ pet request. To support this, landlords will be able to require pet insurance to cover any damage to their property
- Apply the Decent Homes Standard to the private rented sector to give renters safer homes and improve housing standards in the sector.
- Apply ‘Awaab’s Law’ to the sector, setting clear legal timeframes when a landlord must take action to make homes safe where they contain serious hazards, particularly regarding damp and mould.
- Make it illegal for landlords and agents to discriminate against prospective tenants in receipt of benefits or with children
- End the practice of rental bidding. Landlords and agents will be required to publish an asking rent for their property and it will be illegal to accept offers made above this rate.
- Enhance local authority enforcement by expanding civil penalties, introducing investigatory powers and bringing in a new requirement for local authorities to report enforcement activity to Government.
- Strengthen rent repayment orders by extending them to superior landlords, doubling the maximum penalty and ensuring repeat offenders have to repay the maximum amount.