The UK Parliament has recently introduced a new legislation called the Renters’ Rights Bill 2024, which aims to address key challenges in the rental market and ensuring fairness between all parties involved. Therefore, creating a more secure rental market for both tenants and landlords.
What is the Renters’ Rights Bill?
The UK Parliament introduced the Renters’ Rights Bill to address the longstanding issues in the private rental sector. Its primary aim is to balance the rights and responsibilities of tenants and landlords, while ensuring transparency and fairness in rental agreements.
By addressing challenges such as eviction processes, rent adjustments and tenant security, the bill aims to create a more equitable and stable housing marketing for everyone.
Updates in the Renters’ Rights Bill
The updates in the Renters’ Rights Bill target key issues faced by tenants and landlords, and below is a breakdown of the reforms and their implications.
End of “No Fault” Evictions
The bill abolishes Section 21 Evictions, commonly know as “No Fault” evictions. Landlords must now provide valid reasons to end a tenancy, such as selling property or dealing with significant rent arrears. Landlords must now also meet clear conditions to terminate a tenancy.
Periodic Tenancy Structure
All assured shorthold tenancies will transition to periodic tenancies. This should simplify rental agreements, therefore making the process easier to navigate for tenants.
Clearer Grounds for Possession
The Bill provides detailed grounds for landlords to reclaim their properties. These include situations such as:
- Selling the property
- Significant rent arrears
- Addressing anti-social behaviour
Fair Rent Adjustment Mechanism
The Bill introduces a fair process for handling rent increases. Tenants can now challenge excessive rent hikes through an independent tribunal.
Cap on Advance Rent Payments
A new proposal limits advance rent payments to one month’s rent. Currently, there is no restriction, which has allowed some landlords to exploits tenants by demanding excessive upfront payments.
Landlords may still request a security deposit, capped at 5 or 6 weeks’ rent, alongside one month’s rent in advance to cover potential damages.
Safeguards for Bereavement
The Bill includes protections for bereaved guarantors. Guarantors will no longer be obligated to pay rent for the remainder of a tenancy if the primary tenant passes away.
Reducing Early Commitments for Students
A proposed change prevents students from being locked into rental agreements more than 6 months before moving in.
Private Rented Sector Ombudsman
A new ombudsman service will help resolve disputes between tenants and landlords. This service offers a quicker and cheaper alternative to court. Additional funding for the ombudsman will be sourced from fees paid by landlords.
Privately Rented Property Portal
A new online portal should make renting more transparent. Landlords will receive guidance on their legal responsibilities, while tenants can access information which can help them to make better decisions.
Right to Request Pets
Tenants now have the right to request permission to keep pets, so landlords must respond reasonably to such request. But to address concerns, landlords can request pet insurance to cover potential damages.
Why Is the Bill Important?
The Renters’ Rights Bill 2024 builds on the foundations of the earlier Renters Reform Bill introduced in 2023. This updated legislation also incorporates feedback from tenants, landlords and policymakers, refining the principles of the original bill.
Its primary goals include:
- Enhancing tenant security
- Promoting fairness in rental agreements
- Simplifying processes for landlords and tenants
- Stabilising the housing market
This legislation reflects the government’s commitment to improving living standards and fostering trust in the rental sector.
What Does It Mean for Tenants and Landlords?
For tenants, the Bill provides greater security, fair rent practices and improved dispute resolution. While for landlords, the Bill provides clarity on their rights and responsibilities.
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