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Renters' Rights Bill
There are still many hurdles for the Bill to clear as part of the process of parliamentary scrutiny, but as Labour have a majority in the House of Commons the legislation could go through as quickly as next spring, with the reforms being implemented by late summer 2025.
Tenancy & Possession
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End of Section 21 notice i.e. 'no fault' evictions. This means landlords now need a valid, legally defined reason for ending a tenancy, such as rent arrears or wanting to sell the property;
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Removing fixed-term assured tenancies, and instead allowing tenants to end a tenancy with 2 months' notice, at any time, and via any written method;
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Introducing a new ‘Landlord circumstance’ grounds where the landlord needs to sell will be introduced, as well as an amended ground where the landlord or their family needs to move in. Landlords won’t be able to use these grounds in the first 12 months of a tenancy, will need to give four months’ notice, and cannot market the property for 12 months after the notice expires or the claim is filed at court;
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Mandatory rent arrears ground amended - requiring 3 months’ arrears and 4 weeks’ notice;
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A new student possession ground – which will require prior notice from the landlord and only applies to HMOs let entirely to students;
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Ban discrimination against tenants in receipt of benefits or with children when choosing who to let to.
Setting Rents
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Ban rental bidding wars – preventing landlords and agents from encouraging or accepting rents above the listed rate;
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Once a year, landlords will be able to increase rents up to the market rate (defined as the price that would be achieved for the property as a newly advertised let) by issuing a Section 13 notice which sets out the new rent and gives at least 2 months’ notice before it takes effect.
Tenant Protections: Pets, Benefits, and Families
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Stopping landlords from discriminating against tenants who have children or receive benefits. Additionally, tenants will have the right to request to keep pets in their homes, and landlords will need a good reason if they refuse. However, landlords will be able to ask tenants to take out pet insurance to cover potential damage.
Standards of Enforcement
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Introducing a Decent Homes Standard to the private rented sector with fines of up to £7,000 for failing to meet standards;
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Named after a tragic case involving a toddler who died due to mould exposure, Awaab’s Law will now apply to private rentals, which means Landlords must fix serious health hazards like dampness or mould within a set timeframe or face penalties. The Decent Homes Standard will also apply to private rentals, ensuring properties are safe and habitable;
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Create a digital private rented sector database with information for landlords, tenants, and councils;
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Local authority enforcement - give local authorities greater powers to investigate and enter PRS properties and substantially increase the financial penalties for non-compliance.
Resolving Disputes
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Setting up a new ombudsman service that will provide fair, impartial and binding resolution to both landlords and tenants, reducing the need to go to court.
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Support for landlords who want to initiate disputes will not be through the ombudsman but the Government has confirmed they are looking at ways to allow this.
Compulsory Ombudsman membership for landlords
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Setting up a new ombudsman service that will provide fair, impartial and binding resolution to both landlords and tenants, reducing the need to go to court. Regardless of whether they use a professional agent or not, landlords will have to join the new Ombudsman service which will provide complaint resolution services for tenants and have the power to compel landlords to issue apologies, provide information, carry out remedial action, and pay compensation.