Renters’ Rights Act explained: Key points from new government guidance

Sir Keir Starmer
Sir Keir Starmer

The government has published new guidance on the Renters’ Rights Act, outlining what the legislation means for letting agents, landlords, and tenants.

The guidance includes changes to tenancy structures, notice periods, and property standards, as well as new rights and responsibilities for all parties in the private rented sector.

Prime minister Sir Keir Starmer said: “Every family deserves the dignity of a safe and secure home.

“For too long, millions of renters have lived at the mercy of rogue landlords or insecure contracts, with their futures hanging in the balance. We’re putting an end to that.

“A secure home isn’t just bricks and mortar – it’s the foundation for opportunity, safety, and a better life. No child should grow up without one.”

The government has provided the following overview of the measures being introduced:

+ Abolish Section 21 evictions and move to a simpler tenancy structure where all assured tenancies are periodic.

+ Ensure possession grounds are fair to both parties, giving tenants more security, while ensuring landlords can recover their property when reasonable.

+ Provide stronger protections against backdoor eviction by ensuring tenants are able to appeal excessive above-market rents which are purely designed to force them out.

+ Introduce a new Private Rented Sector Landlord Ombudsman that will provide quick, fair, impartial and binding resolution for tenants’ complaints about their landlord.

+ Create a Private Rented Sector Database to help landlords understand their legal obligations and demonstrate compliance (giving good landlords confidence in their position), alongside providing better information to tenants to make informed decisions when entering into a tenancy agreement.

+ Give tenants strengthened rights to request a pet in the property, which the landlord must consider and cannot unreasonably refuse. To support this, landlords will be able to require pet insurance to cover any damage to their property.

+ Apply the Decent Homes Standard to the private rented sector to give renters safer, better value homes and remove the blight of poor-quality homes in local communities.

+ Apply Awaab’s Law to the sector, setting clear legal expectations about the timeframes within which landlords in the private rented sector must take action to make homes safe where they contain serious hazards.

+ Make it illegal for landlords and agents to discriminate against prospective tenants in receipt of benefits or with children – helping to ensure everyone is treated fairly when looking for a place to live.

+ End the practice of rental bidding by prohibiting landlords and agents from asking for or accepting offers above the advertised rent. Landlords and agents will be required to publish an asking rent for their property and it will be illegal to accept offers made above this rate.

+ Strengthen local authority enforcement by expanding civil penalties, introducing a package of investigatory powers and bringing in a new requirement for local authorities to report on enforcement activity.

+ Strengthen rent repayment orders by extending them to superior landlords, doubling the maximum penalty and ensuring repeat offenders have to repay the maximum amount.

In the coming weeks, ministers will outline how the reforms will be rolled out.

The housing secretary Steve Reed commented: “Our historic Act marks the biggest leap forward in renters’ rights in a generation. We are finally ending the injustice overseen by previous governments that has left millions living in fear of losing their homes.

Steve Reed
Steve Reed

“For decades, the scales have been tipped against tenants. Now, we’re levelling the playing field between renters and landlords.

“We are tearing down the walls of injustice in the private rented sector and building a future where tenants are protected, respected and empowered.

“This is an historic moment for renters across the country and we’re proud to deliver it.”

Renters can expect to see further reforms that will put an end to bidding wars and stop landlords from demanding more than one month’s rent upfront. Tenants will also be able to challenge unfair rent increases and ask to keep a pet – something landlords can’t say no to without a good reason.

The Renters’ Rights Act will also tackle discrimination head-on, banning landlords and agents from refusing tenants because they have children or receive benefits, strengthening local authority enforcement and bringing the Decent Homes Standard and Awaab’s Law into the private rented sector for the first time.

Matthew Pennycook
Matthew Pennycook

A new Private Rented Sector Ombudsman will also offer swift, binding resolutions to tenants’ complaints. The service will offer fair, impartial and binding resolution for tenants and will have powers to compel landlords to issue an apology, provide information, take remedial action and/or pay compensation.

Housing minister Matthew Pennycook commented: “This government promised it would succeed where its predecessor had failed by overhauling the regulation of England’s insecure and unjust private rented sector – our landmark Renters’ Rights Act delivers on that commitment.

“By abolishing Section 21 ‘no-fault’ evictions and empowering renters with greater security, rights, and protections, the Act will level decisively the playing field between landlord and tenant and transform the experience of private renting.”

 

Renters’ Rights Act explained: Key points from new government guidance

 

x

Email the story to a friend!



8 Comments

  1. Pepieuxrich

    For decades the scales have been tipped against tenants. Do they really believe that?

    Report
  2. Hit Man

    Starmer claims, “For too long, millions of renters have lived at the mercy of rogue landlords or insecure contracts, with their futures hanging in the balance. We’re putting an end to that.”

    Well, the new bill will certainly do that — not.

    In reality, rogue landlords will relish the fact that many responsible landlords are selling up. None of the new laws truly affect the bad landlords — if anything, they make it easier for them to exploit tenants further. Most landlords who operate outside the rules won’t register with the new Private Rented Sector Landlord Ombudsman, just as many already fail to register for tax or with Selective Licensing schemes.

    Tenants, afraid of eviction, will be even less likely to raise concerns about poor property standards. And with the end of fixed-term tenancies, renters lose what little security they had. A shrinking supply of rental homes combined with soaring demand will push rents even higher, putting more pressure on tenants.

    This bill, intended to protect renters, is set to make life even harder for the very people it’s supposed to help.

    Report
    1. CountryLass

      Yes, I’ve just had to explain to a tenant who wants to make some improvements to the property (at their own cost) in return for a long-term tenancy agreement that with the new legislation, we can do one now but I am not certain if it will actually stop the landlord from serving them notice when this new legislation comes into place. They want this to be their forever home, the Landlord is happy for them to stay there and make the improvements, but they want the security of a fixed term before they spend several thousand on a new kitchen.

      Report
      1. AcornsRNuts

        The Government has yet to learn of the old law: The law of unintended consequences.

        Report
        1. Rosebush

          Landlords can’t refuse those on benefits but insurers can increase their premium if a landlord has tenants on benefits. Tenants do not have to take out pet damage insurance I read this had been removed from the bill. What is reasonable grounds to refuse pets? If a pet is introduced against the landlords agreement no judge would ever grant an eviction for this. Tenants can continue to refuse a landlord permission to carry out inspections and we all know why they refuse? Nothing in this bill for landlords; I have no idea why landlords are repeatedly informed that the bill is also good for landlords. Rogue landlords will continue to operate under the radar as we have millions of illegal tenants including overstayers happily living in bad conditions here in the UK.
          Bad, negligent tenants will now be able to live rent free for months as landlord cannot start eviction for 3 months and then wait for another 12 months, or longer for a court date. Landlord must continue to pay for repairs and maintenance while tenants fail to pay their rent. Tenants can fail to uphold their contract but landlords who do will be heavily fined.

          Report
          1. CountryLass

            It puzzles me that hotels and holiday accommodation can refuse to allow pets to stay, partly due to damage issues, partly due to allergy issues, but a Landlord isn’t given the same right? I’ve had someone argue that he should be allowed to keep cats in a first floor maisonette with no cat flap and only 1 door. They said it was ridiculous and unfair that the landlord said no.

            I also had a Landlord refuse to rent to someone with tarantulas, as she has arachnophobia and would never be able to go into the house, even after they had left in case it had laid eggs somewhere. She was find with the person with the snake and lizard, fine with a dog, did not want a cat as a) no cat flap and b) next to a busy road, but the spiders were a flat no.

            At the end of the day, it is the Landlord’s property, and the Landlords choice.

            Report
            1. AcornsRNuts

              I would refuse the tarantula for the same reason.

              Report
  3. Hit Man

    The Renters’ Rights Bill includes the abolition of Section 21, meaning landlords will no longer be able to evict tenants without a valid reason. Instead, they must provide a legitimate ground for eviction and give at least four months’ notice. However, the court process for evicting a tenant is often lengthy—taking 12 months or more—and during this time, tenants may withhold rent. Combined with legal fees, this can result in significant financial losses for landlords.

    Report
X

You must be logged in to report this comment!

Comments are closed.

Thank you for signing up to our newsletter, we have sent you an email asking you to confirm your subscription. Additionally if you would like to create a free EYE account which allows you to comment on news stories and manage your email subscriptions please enter a password below.