Labour's Renters' Rights Bill has been revealed

Steve Lumley·19 July 2024·5 min read
Labour's Renters' Rights Bill has been revealed

The King's Speech has revealed what Labour's plans for the private rented sector are - and they include the Renters' Rights Bill. 

This is very similar to the Renters (Reform) Bill which didn't make the statute book after the General Election was called. 

Prime Minister Keir Starmer said: "Too many people currently live with the threat of insecurity and injustice, and so we will make sure everyone can grow up in the secure housing they deserve. 

"We will introduce tough new protections for renters, end no fault evictions and raise standards to make sure homes are safe for people to live in." 

Revolutionise England's private rented sector 

The Renters' Rights Bill is looking to revolutionise England's private rented sector (PRS).  

Here are the key points covered by the bill: 

  • Abolishing Section 21: The bill introduces clear and expanded possession grounds, allowing landlords to reclaim their properties when necessary 
  • Strengthening tenants' rights: Tenants gain the power to challenge rent increases and put an end to rental bidding wars 
  • Pets in lets: Landlords must consider allowing pets, although they can request insurance to cover potential damages 
  • Decent Homes Standard: The bill aims to improve housing quality in the PRS 
  • Awaab's Law: Clear legal expectations and timeframes for landlords to follow 
  • Digital Rented Sector Database: A centralised resource for landlords, tenants and councils 
  • Dispute resolution: An ombudsman service for fair and impartial resolutions between landlords and tenants 
  • Anti-discrimination measures: Landlords cannot discriminate against tenants receiving benefits or those with children 
  • Council enforcement: Easier identification and removal of criminal landlords from the sector. 

End tenant bidding wars and unfair rent increases 

Labour also says it will end tenant bidding wars and unfair rent increases that are aimed at removing a tenant. 

It also says the Bill will address the 'insecurity and injustice' that renters experience by reforming the PRS and improving the quality of housing. 

Labour also says: "We value the contribution made by responsible landlords who provide quality homes to their tenants and believe they must enjoy robust grounds for possession where there is good reason to take their property back. 

"However, the Government is determined to level decisively the playing field between landlord and tenant by providing renters with greater security, rights and protections and cracking down on the minority of unscrupulous landlords who exploit, mistreat or discriminate against tenants with bad practices such as unfair rent increases intended to force tenants out, and pitting renters against each other in bidding wars." 

Reform must not make the supply crisis worse 

Chris Norris, the policy director at the National Residential Landlords Association (NRLA), said: "With an average of 15 households chasing every available home to rent it is vital that rental reform does not make an already serious supply crisis in the private rented sector worse. 

"The system that replaces Section 21 needs to be fair, workable and sustainable for both responsible landlords and renters. 

"That means fixing a broken justice system which too often fails those reliant upon it." 

He adds: "The Housing Minister has rightly noted that landlords need the courts to operate quickly where they have a good reason to repossess a property.  

"This includes cases of tenant anti-social behaviour and serious rent arrears, which currently take almost seven months to process. This is far too long." 

'The end to no-fault evictions' 

Ben Twomey, the chief executive of Generation Rent, said: "It is welcome to see the end to no-fault evictions included in the government's plans.  

"After five years of promises from the previous government, with no improvements at the end of it, renters are understandably demoralised and wary of new commitments.  

"The government faces a big test to reassure voters that it can quickly turn promises into action and change things for the better." 

He added: "These reforms must therefore go further than the previous government planned, with real support for tenants whose landlord wants to sell or move back in to prevent homelessness.  

"This includes more time to enjoy our homes without fearing eviction, and more notice and financial support if this happens.  

"Similarly, empowering tenants to challenge rent increases won't work if we still end up with rents rising faster than our incomes." 

'New Bill looks like the Renters (Reform) Bill' 

Simon Thompson, the managing director of Accommodation for Students, said: "Most student landlords will be worried because this new Bill looks like the Renters (Reform) Bill. 

"The sector had issues with that Bill, especially with the move to periodic tenancies, but we'll have to see the detail in this new legislation." 

He added: "We said previously that most of these ideas can't be made law without an improvement to the courts system. 

"It's crucial that landlords can get possession of their property when necessary, without having to wait months or even years."