After a long journey through Parliament, the Renters’ Rights Bill received Royal Assent on 27th October and has now become law in the UK. It includes a number of significant changes which will affect the majority of people who rent property in England and Wales. It is viewed as the most significant increase in renters’ rights in a generation and will have widespread implications for those looking to relocate to the UK.
It is important to note that, although the Bill is now law, the UK Government is yet to outline exactly how these reforms will be rolled out and when they will take effect. The measures will not be applied to either existing or new tenancies until the roll-out is confirmed.
What will the Act do?
In a previous article, we outlined the measures in the proposed Bill and explored the impact they may have on assignees as well as the wider impact for the rental market. As a reminder, the new Act:
- Ends ‘no fault’ evictions: Abolition of Section 21 of the Housing Act 1988 which allowed landlords to evict tenants without giving a reason.
- Introduces periodic tenancies: Replacement of assured shorthold tenancies (ASTs) with periodic tenancies, allowing tenants to end a tenancy with two months’ notice at any point.
- Restricts rent increases: Provision of a new way for tenants to appeal rent increases which are above market-rate.
- Establishes an Ombudsman: Introduction of a new Private Rented Sector Landlord Ombudsman to help resolve tenants’ complaints about their landlords.
- Enforces a landlord database: Creation of a Private Rented Sector Database for which all landlords must be registered.
- Supports pet ownership: Restriction of the ability of landlords to refuse requests for pets.
- Applies the Decent Homes Standard: Application of the Decent Homes Standard, which sets minimum quality requirements for properties, to the private rented sector.
- Sets expectations for resolving hazards: Establishment of new expectations about timeframes within which landlords must take action to resolve serious hazards (Awaab’s Law).
- Ends some forms of discrimination: Banning of discrimination against tenants who are in receipt of benefits or who have children.
- Bans bidding wars: Prohibition of landlords and agents accepting offers above the advertise rent.
- Introduces enforcement requirements: Setting of requirements for local authorities to report on enforcement activity.
- Changes rent repayment: Strengthening of rent repayment orders.
We are closely following developments about the Renters’ Rights Bill. Icon will continue to update our clients and assignees of changes they need to be aware of around the new legislation and any other consequences of it.
