Labour’s Renters Rights Bill: everything you need to know

Labour has announced its long-awaited plans to reform renting in England, unveiling the Renters Rights Bill in Parliament.

This new legislation aims to “give greater rights and protections to people renting their homes.” But while the proposed legislation aims to improve conditions for tenants, it also includes measures to protect responsible landlords.

So what exactly does this Bill contain, and when will it become law? Here’s a breakdown of what landlords can expect:

Key features of the Renters Rights Bill

1. The end of no-fault evictions

The Bill proposes to get rid of Section 21, which allows landlords to evict tenants without reason.

While this will affect both new and existing tenancies, it’s worth noting that only around 6% of tenants are currently evicted using Section 21. The new legislation will also introduce strengthened and clearer grounds for possession, making sure that landlords can still reclaim their properties if necessary. The tenancy must have lasted at least a year, and the tenant must be given 4 months’ notice.

2. Restrictions on rent increases

Tenants will be able to challenge unreasonable rent increases, giving them more control over their rental costs.

Find out more about how to increase rent, the right way, here.

3. Ban on bidding wars

The Bill also plans to put an end to rental bidding wars. Landlords and letting agents will need to advertise a set asking rent, and won’t be allowed to accept bids above this price.

4. Easier pet ownership

Under the new rules, tenants will find it easier to keep pets provided they have landlord approval.

Landlords won’t be able to unreasonably refuse a tenant’s request to have a pet, however they can request insurance to cover any potential damage.

5. Meeting the Decent Homes Standard

To reduce the number of poor-quality rental homes, the Bill introduces the Decent Homes Standard for the private sector.

This means that all rental properties must meet minimum standards for safety and security. Landlords whose property don’t meet these standards could face fines of up to £7,000 and risk prosecution.

6. Timed responses to health hazards

Originally introduced in the Social Housing Regulation Act 2023, Awaab’s Law requires landlords to address reported health hazards within specific timeframes.

The new Bill extends this to the private sector, ensuring rental properties are safe and fit to live in.

7. A digital database for the rental sector

A new, fee-based digital database will hold essential information for landlords, tenants, and councils.

This will help tenants make informed decisions when entering new tenancies, while landlords can easily access their legal responsibilities and demonstrate their compliance.

8. Participating in the property ombudsman scheme

The Bill proposes the creation of a new property ombudsman to provide a fair, binding, and impartial resolution for disputes between landlords and tenants.

This is to help avoid expensive court proceedings and streamline the process. All landlords will need to join this ombudsman service, although those using letting agents are already covered by services that help resolve landlord-tenant disputes without the need to go to court.

9. Anti-discrimination measures

Under the proposed legislation, it’ll be illegal for landlords to discriminate against tenants receiving benefits or those with children, creating a more inclusive rental market.

Any existing terms in mortgage or insurance contracts that say otherwise will be void.

10. Strengthened local council powers

Local councils will be given more power to identify and penalise non-compliant landlords, with the aim of driving up overall standards in the rental sector.

When will the Renters Rights Bill become law?

Housing Minister Matthew Pennycook has indicated that the Bill could be law by summer 2025.

The Bill had its first reading in Parliament on 11th September 2024, so it’s still in its early stages. For it to become law, it needs to pass through both the House of Commons and the House of Lords. With Parliament resuming on 7th October, we expect more detailed discussions then.

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Disclaimer: This article is a guide, and not intended to be relied upon as legal or professional advice, or as a substitute for it. August does not accept any liability for any errors, omissions or misstatements contained in this article. Always speak to a suitably qualified professional if you require specific advice or information.