The biggest overhaul of private renting in England
While we accept the need for reform, we share members' grave concerns with specific areas of the proposed legislation, and the impact this will have across the sector with the current lack of enforcement by local authorities. We are pushing for a balanced approach between the rights of landlords and tenants.
What's included in the Renters' Rights Bill?
Whilst timings and details are still lacking, a Guide to the Bill was issued on 26 September 2024, whilst it outlines everything in the Bill including:
- Abolishing Section 21 ‘no fault evictions’ with new and expanded possession grounds.
- Introduce new measures to end rental bidding wars by landlords and letting agents.
- Tenants will have the right to request a pet and landlords will be allowed to request insurance to cover potential damage from pets if needed.
- Applying a Decent Homes Standard and ‘Awaab’s Law’ to the private rented sector.
- Creating a digital private rented sector database with key information for landlords, tenants, and councils.
- A new ombudsman service for private rented sector landlords.
- Making it illegal for landlords to discriminate against tenants in receipt of benefits or with children when choosing to let their property.
- Strengthening local councils’ enforcement powers through expanded Rent Repayment Orders and increases to fines.
Renters' Rights Bill - what's next?
In our continued quest to support property agents to adapt, Propertymark will outline the changes to the Renters' Rights Bill, our ongoing lobbying and where we go next.
Propertymark's position
We continue to make the case for evidence-based policies that support a flexible and fair private rented sector for all. With such significant changes being proposed to the current tenancy regime, there must be a commitment to ensure the court system and grounds for possession are robust and fit for purpose.
Furthermore, without an enhanced, effective and well-resourced enforcement regime from local authorities, it is unlikely that any benefits from the reforms will be realised.
We are in dialogue with the Ministry of Housing, Communities and Local Government (MHCLG) and will be responding to consultations and provide evidence of unintended consequences.
latest video
Timothy Douglas, Head of Policy and Campaigns shares his initial reaction to the Bill.
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To improve the UK Government’s proposals and make the PRS fairer for all, further reform is needed in the following areas:
Retaining fixed term options
A tenant should be able to agree to a fixed-term tenancy when it is mutually beneficial for both parties. A fixed term gives landlords and tenants a guarantee as to the length of time the tenancy will last. The tenant has security of tenure for the full tenancy period and the landlord knows that rent payments will be made for the whole fixed-term period. This is particularly important for student lettings.
Court reform before Section 21 is abolished
The UK Government acknowledge that court reform is essential. However, proposed reforms will not be implemented before Section 21 is abolished. This will likely mean that courts already having difficulty dealing with the volume of cases cannot function. The UK Government must also provide more details and clarity on how their plan to digitise the court system and improve access to justice.
Allowing more pet friendly properties
There needs to be detailed guidance on what is meant by ‘unreasonable’ should the property not be suitable for pets. This is particularly important in rural areas where pets near livestock are unsuitable. The UK Government must also enable the level at which deposits are set to be more flexible to reflect the greater risk of renting with pets.
Qualification and regulation of property agents
Introducing minimum standards to work in the sector and statutory rules to ensure letting agents are suitably qualified will ensure parity with the social rented sector, drive up standards and help deliver a fairer private rented sector for tenants and landlords.
Members: Download the campaign toolkit
To help you understand the changes the Bill will bring and to disseminate this information to your landlords — our Toolkit provides information, guidance, training, and handy templates to help you prepare for the future as well as resources to contact your MP to inform them of your concerns.
Parliamentary process
It can take nine to twelve months for Bills to pass into law. The process includes ‘Readings’ in both the House of Commons and the House of Lords and will allow the opportunity for amendments to be tabled. A similar process takes place in the House of Lords. Any amendments have to be agreed by both the House of Commons and the House Lords after which the Bill can be sent to the King for Royal Assent and pass into law. It will then become an Act.
Complete: 11 September 2024
This is held in the House of Commons, when the bill is first published. There is no debate on the Bill.
Complete: 9 October 2024
This is the first opportunity for MPs to debate the main principles of the Bill and usually takes place no sooner than two weekends after first reading.
Expected Completion date: 28 November 2024
A committee of MPs will scrutinise the bill line by line. This provides the first opportunity to propose, debate and vote on suggested amendments and new clauses.
A Public Bill Committee in the Commons can take oral and written evidence on the bill.
All MPs will have an opportunity to table, debate and, if needed, vote upon further suggested amendments and new clauses to the Bill.
The final chance for the Commons to debate the contents of the Bill. It usually takes place immediately after Report Stage. No amendments are possible.
Supporting members
We will be supporting property agents to adapt through the transition. We will be creating resources as the Bill makes it's way through the parliamentary process as the details become clearer. Members, please check you communication preferences to ensure you are receiving newsletters and legislative to make sure you stay informed every step of the way.
Featured webinar recording
15 OCT 2024
Renters' Rights Bill
Jan Hÿtch, who heads up the Propertymark Helplines, and Valerie Bannister, Southern England Regional Executive joined Timothy Douglas to discuss the second reading debate, outlining what it all means for property agents, looking at MP's objections and the proposals to maintain the balance of a fairer private rented sector.
Training course
Preparing for the Renters' Rights Bill
The Renters’ Rights Bill is working its way through the Parliamentary process and will be the most significant change to landlord and tenant law since the Housing Act 1988.