Renters Rights Bill and PRS by Heather Hilder on August 15, 2024 Renters Rights Bill and PRS How will the new Renters Rights Bill affect the PRS? The new Labour government is working on the details of its Renters’ Rights Bill. The Bill was revealed in the King’s Speech and key elements of which were also part of its manifesto. The question ‘How will the new Renters Rights Bill affect the PRS’ is on many Landlords’ and Tenants’ lips. The bill proposes several changes to the sector. Many of these are a reflection of the proposals within the Conservatives’ Renters’ (Reform) Bill that was working its way through approval before being scrapped when the general election was called. The new bill will have to pass through the same process that the Renters’ Reform Bill went through, with Autumn the likely earliest it can be introduced. The government has promised more details in October with it likely becoming law sometime between October 2025 and October 2026. So how will the policies that make up the bill impact the private rented sector? More security for renters The main benefactors of the Renters Rights Bill are evident in the very title of the bill – it’s focused on improving tenants’ rights. The government aims to achieve this in a number of ways, including: improving a tenant’s right to stay in a property fairer rental prices the ability to have requests for pets fairly considered. The end of no-fault Section 21 notices will improve a tenant’s right to stay within a rental property. Currently a feature of the Housing Act 1988, their abolishment will lead to greater security of tenure for tenants. Revised powers of possession for landlords The consequence is that landlords assume a less powerful position in the hierarchy of renting. However, Labour has counterbalanced its plans to abolish Section 21 by confirming that it will strengthen and redefine grounds for possession when a landlord wants to reclaim their property for a valid reason. It’s hoped this will provide clearer boundaries for landlords and tenants. Improved standards of housing The Renters Rights Bill should also lead to improved housing standards in the private rented sector. Its plans to implement ‘Awaabs Law’, for example, aims to set strict timeframes for rectifying damp and mould issues within a rental property to eliminate the risk to health that such hazards can cause. A fairer rent system Labour’s focus on unfair rent increases should also help to bring change to the sector. It aims to stamp out unfair rent increases, as well as stopping landlords and letting agents from encouraging bidding wars between renters to inflate rents. Greater rights for children, pets and those on benefits The government plans to end, and make illegal, the practices of discrimination by landlords against tenants with children or who receive benefits. Tenants wanting to keep a pet will also have greater support. New rules will allow them to have a request for a pet considered and not unreasonably refused. To counterbalance this, landlords can insist on the tenant having relevant insurance in place to cover potential damage from that pet if appropriate. Callaways Estate Agents is here to support landlords along the South Coast, including Falmer, Worthing, and Brighton & Hove. Contact us today to learn how we can help you adapt to new regulations and safeguard your investment. Reach out now for expert advice!
