Renters’ Rights Bill

The Renters Rights Bill proposes to change the law in respect of rented homes with a view to strengthening the rights of tenants. The key change that the Bill proposes is to abolish no fault evictions by Section 21 notices.

As the law currently stands, a landlord can serve a Section 21 Notice to evict their tenant(s) after the end of a fixed term tenancy or during a tenancy which has no fixed end date (a periodic tenancy). The Landlord does not have to give a reason for serving the Section 21 Notice. Tenants must be given at least two months’ notice to leave the property. If the tenant(s) fail to leave the property by the date given in the Section 21 Notice, possession proceedings can be issued by the Landlord against the Tenant(s) with a view to a possession order being granted by the Court.

A summary of the key proposals of the Renters Rights Bill is as follows;

This is all good news from a Tenant’s perspective because unless they are in breach of their AST, they cannot be evicted without reason. This should provide tenants with greater security which in turn may lead to an increased interest in renting and a boost to rental demand.

From a landlord’s perspective however, it is likely that these proposals will make it difficult for them to regain possession of their properties. Of particular concern is that before a landlord can serve notice to evict a tenant for non-payment of rent, there will have to be 13 weeks of rent arrears. The proposed legislation also seems to suggest that as long as the tenant pays some of their rent arrears during that 13 week period, the landlord will then have to wait until a further 13 weeks of rent arrears have accrued before they can serve a new notice to evict. This will undoubtedly be a frustrating process for landlords.

On a more positive note, the Renters’ Rights Bill will introduce a new ground for landlords to rely upon where they wish to sell their property.  That said, this ground cannot be relied upon during the first 12 months of the tenancy and even then, a Landlord will have to give 4 months’ notice to the tenant so it will not be a quick process. It is currently not known what evidence a landlord would have to provide, if any, of selling their property.

The ultimate aim of the Bill is to rebalance the relationship between landlord and tenant, but in doing so, it looks at first glance to weigh very heavily in favour of the tenant. As a result, while this proposed legislation seems fair in that it prevents the eviction of tenants without reason, the effects could be very detrimental on landlords.

The Renters’ Rights Bill is currently in the House of Lords awaiting its second reading. After this stage the Bill will progress to the committee stage, then to the report stage and then for its third reading. Thereafter any final amendments will be considered and the Bill will then be given Royal Assent. It is estimated that the Bill will come into force in Spring/Summer 2025.

Should you need any advice on your position as Landlord or Tenant in respect of the Renters (Reform) Bill, please contact Natasha Wright by email at natasha.wright@luptonfawcett.law.