Labour’s Renters’ Rights Bill: what it means for tenants and no-fault evictions

Labour’s Renters’ Rights Bill, introduced five years after the idea was first promised, aims to significantly reshape the rental market by improving tenants’ rights and levelling the playing field between landlords and renters.

The bill brings several key reforms, most notably a complete ban on no-fault evictions under Section 21 of the 1988 Housing Act, while also introducing protections against unfair rent increases, poor housing conditions, and tenant discrimination.

Key proposals in the Renters’ Rights Bill:

Ban on no-fault evictions:

The bill will ban Section 21 evictions, which currently allow landlords to evict tenants with two months’ notice without providing a reason. By removing this provision, Labour seeks to prevent arbitrary evictions, particularly when tenants complain about property conditions such as damp or mould. Landlords will still be able to evict tenants for legal reasons, such as rent arrears or anti-social behaviour.

Stricter property safety standards:

The bill extends new safety measures to the private rented sector, requiring landlords to address hazards like unsafe living conditions promptly. Under the proposal, hazards must be investigated within 14 days, repaired within 7, and emergency repairs completed within 24 hours. Failure to comply could lead to fines of up to £7,000 or prosecution.

Introduction of the Decent Homes Standard:

For the first time, the private rented sector will be subject to the Decent Homes Standard, which has previously applied only to council homes. This will compel landlords to bring properties up to a basic standard of safety and comfort.

Ban on mid-tenancy rent increases:

Labour plans to prevent mid-tenancy rent hikes by limiting landlords to one rent increase per year at market rates. While the government has stopped short of introducing rent controls, it will make it easier for tenants to challenge excessive rent rises through the First Tier Tribunal and defer increases in cases of hardship.

Tenant rights to request pets:

The bill strengthens tenants’ ability to keep pets in rental properties. Landlords must consider requests and cannot unreasonably refuse, although they may request insurance to cover potential damage.

Crackdown on bidding wars:

With rental bidding wars becoming increasingly common, Labour’s bill introduces a legal requirement for landlords and letting agents to publish set rental prices. They will be banned from accepting or encouraging offers above the listed price, a move intended to reduce unfair competition among renters.

Tenancy reform:

The bill will replace fixed-term tenancies with periodic tenancies, allowing tenants to stay in their homes until they decide to move, giving two months’ notice. Landlords will need to give four months’ notice if they wish to sell or move into the property, and tenants will receive a 12-month protected period at the start of a tenancy where they cannot be evicted for such reasons.

Ban on benefit and family discrimination:

Labour’s proposal also targets discrimination against tenants who receive benefits or have children. These forms of discrimination, already ruled illegal under the Equality Act, will be explicitly banned to ensure equal access to housing for all.

What will the Renters’ Rights Bill mean for no-fault evictions?

One of the most significant reforms in Labour’s Renters’ Rights Bill is the ban on Section 21 no-fault evictions, which will prevent landlords from evicting tenants without a legitimate reason. This is a crucial shift aimed at protecting tenants from arbitrary eviction, particularly when they raise concerns about property conditions. By banning these evictions, Labour hopes to reduce homelessness and housing insecurity, issues that have been exacerbated by the use of no-fault evictions.

Impact on landlords:

The bill will likely increase pressure on landlords, who will need to meet higher safety standards, limit rent increases, and face new restrictions on evictions. While the reforms are seen as a win for tenants, some landlords may choose to exit the market due to the added regulations and potential costs of compliance. Labour’s proposed £6 billion home insulation package will offer some support, but landlords will need to bear most of the costs for property upgrades.

When will the bill take effect?

The government is aiming for the new system to be in place by summer. A consultation is expected later this year to finalise details such as spending caps on property upgrades.