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Increased renters rights as Bill passes through House of Commons

The Renters’ Rights Bill has passed through the House of Commons without needing a vote.

As The Canary previously reported, the Renters’ Rights Bill aims to improve security and standards for renters.

It will apply to both new and existing tenants so they can immediately benefit from increased security.

Renters’ Rights: An end to Section 21

During the 2024 General Election, Labour promised to end Section 21, no-fault evictions. To our surprise, they have actually kept their promise.

Section 21 allows landlords to kick tenants out with minimal justification and very little notice from the landlord. For many years, it has been one of the leading drivers of homelessness.

Now, renters will be able to challenge things like poor living conditions without fear of retaliation from landlords. I.e. the landlord kicking them out.

It will also provide greater protection against ‘backdoor evictions.’ This is when they indirectly evict a tenant, such as by dramatically increasing the rent so it is no longer affordable, to force them out. Tenants will now be able to appeal excessive above-market rents.

Assured tenancies

The bill will also bring an end to fixed-term assured tenancies. These mean that renters are legally required to pay rent, even if the property is not up to standard. They also reduce flexibility to leave a property if personal circumstances change, such as needing to move for a new job.

The bill is replacing them with periodic tenancies. This means tenants are in control of how long they stay in the property. When they decide they want to leave, they just have to give two months notice.

Additionally, landlords must join both a new ombudsman and a database, which will reduce the number of rogue landlords.

On a similar note, the ‘Decent Homes Standard‘ — which is the government-set minimum standard for the quality of social housing in England and Northern Ireland — will now also apply to privately rented homes. It will likely ensure that homes are properly insulated, of a sufficient size, in a ‘reasonable’ state of repair, and have “reasonably modern” facilities and services.

Renters’ Rights Bill helping renters take out tenancies

The bill also contains several provisions to remove some of the barriers which prevent people from taking out new tenancies.

Landlords will no longer be able to charge huge amounts of rent up front. They will only be able to request one month’s rent once a tenant has signed a tenancy agreement.

Similarly, the bill will prevent landlords from having prospective renters bidding against each other. The National Residential Landlords Association (NRLA) has claimed that up to 10% of landlords have benefited from bidding wars.

However, some people have suggested that this will lead to letting agents and landlords increasing the asking price of properties. Effectively, tenants will end up paying just as much, just without the ‘bidding war’.

Additionally, landlords and agents will no longer be able to discriminate against prospective tenants who have children or are in receipt of benefits. Back in 2020, it was ruled ‘unlawful’ to discriminate against tenants on benefits; however, it has still been common practice with no real enforcement.

The bill will give tenants more rights to request a pet in the property they are renting.

Rent repayment orders

A rent repayment order allows a local authority to order a landlord to repay an amount of rent to a tenant when a landlord has committed an offence.

It can require a landlord to repay up to 12 months of either rent to a tenant, or universal credit housing element or housing benefit to the local authority.

The order can be made for a variety of offences. This includes, but is not limited to:

  • Managing an unlicensed property or HMO.
  • Using or threatening violence to secure a property.
  • Illegal evictions.
  • Harassment.
  • Failure to comply with an improvement notice.

The downsides

Some people on social media have suggested that the bill could cause problems, such as increasing the need for guarantors.

This can mean landlords automatically exclude a large number of people from renting. Numerous organisations that work with young people experiencing homelessness and care-leavers have flagged it as a barrier to getting into the rental market.

However, campaigners have been fighting for this bill for years and see it as a victory for tenants’ unions across the country.

The bill will now go for the King’s signature and Royal Assent, before coming into law.

 

Feature image via Keith Edkins/ Wikimedia Commons 

By HG

This post was originally published on Canary.