When Will the Renters Rights Bill Become Law? (Renters’ Reform Bill)

What is the Renters’ Rights Bill?

The Renters’ Rights Bill is a piece of legislation introduced in the UK to reform rental laws and strengthen tenant protections. The bill’s key purpose is to make the rental housing market more equitable by addressing issues like insecure tenancies, discriminatory practices, and unfair rent increases.

The Renters’ Rights Bill was introduced by Angela Rayner, the Secretary of State for Housing, Communities, and Local Government. The Renters’ Rights Bill is seen as the successor to the Renters’ Reform Bill, which was part of the previous (Tory) government’s policy agenda. The Renters’ Reform Bill didn’t make it over the line before the change in government, so labour have now created their own version of it

When will the Renters Rights Bill Become Law?

Given that the Renters’ Rights Bill entered the House of Commons for its First Reading on September 11, 2024, and has already progressed to the Committee stage, just one month later, here’s our estimate based on when the Renters’ Rights Bill will become Law:

Key Stages Remaining:

1. Committee Stage (in progress):
   • This stage usually takes 2-3 months, depending on the complexity of the bill and the number of amendments proposed. The Renters’ Rights Bill is complex and may require detailed examination, but if it continues at its current pace, it could be completed by the end of November 2024.
2. Report Stage and Third Reading (December 2024 to Early 2025):
   • The Report Stage and Third Reading typically occur shortly after the Committee Stage, taking a few weeks to a month. If the bill is pushed forward without major delays, it could pass through these stages by January 2025.
3. House of Lords (Early 2025):
   • Once it passes the Commons, the bill moves to the House of Lords. The Lords usually take 2-3 months to scrutinise the bill, suggest amendments, and send it back to the Commons if necessary. If there are no significant delays, this could be completed by March to April 2025.
4. Royal Assent (Mid-2025):
   • After both Houses agree on the final version, the bill is sent for Royal Assent, which is typically a formality. This could occur by May 2025, finalising the bill as law.

Based on its current pace, the Renters’ Rights Bill is likely become law between April and June 2025. If there are no major delays, this timeline is feasible, as the bill has already shown momentum in its early stages.

What are the key features of the bill?

The Renters’ Rights Bill introduces a wide range of reforms aimed at improving tenant protections, increasing transparency in the rental market, and giving tenants more rights. Here are the key features of the bill:

1. Abolition of Assured Shorthold Tenancies (ASTs)

• The bill eliminates Assured Shorthold Tenancies (ASTs), which previously allowed landlords to evict tenants at the end of a fixed term using a “no-fault” Section 21 notice.
• All tenancies will now be periodic assured tenancies, meaning they automatically renew on a rolling monthly basis, giving tenants more stability.

2. End of ‘No-Fault’ Evictions

• The bill abolishes Section 21 evictions, preventing landlords from evicting tenants without providing a valid reason. This change ensures tenants can only be evicted on specific, justifiable grounds.

3. Clear Grounds for Possession

• Landlords must rely on specified grounds for possession to reclaim their property, such as:
  • Rent arrears.
  • Anti-social behaviour.
  • Personal use (e.g., landlord or a family member moving in).
  • Selling the property (with specific requirements such as proving intention to sell and a tenancy of at least one year).
• The bill introduces stricter rules around when and how landlords can evict tenants, ensuring the process is ‘fair’ and transparent​​.

4. Rent Control and Challenges

• The bill sets out a statutory procedure for rent increases. Landlords can only increase rent once per year, and tenants have the right to challenge rent increases through a tribunal if they feel they are unjustified.
• The bill prevents arbitrary rent hikes, giving tenants more control over their housing costs​.

5. Right to Request a Pet

• Tenants have the right to request permission to keep a pet, and landlords cannot unreasonably refuse these requests.
• The bill includes provisions for pet insurance, allowing landlords to require tenants to either provide their own insurance or cover the landlord’s cost for pet-related damage​.

6. Stronger Anti-Discrimination Protections

• The bill includes robust anti-discrimination measures, preventing landlords from rejecting tenants based on:
  • Having children.
  • Receiving benefits.
  • Other protected characteristics such as race, gender, or disability.
• This applies to tenancy agreements, mortgages, and insurance contracts, ensuring fairness in the rental market​.

7. Tenants’ Rights to Repay Rent in Advance

• Tenants are entitled to be repaid any rent paid in advance that covers periods after the tenancy ends. This ensures that tenants who leave early or are evicted fairly recover overpaid rent​.

8. Tenant Notice Periods

• The bill introduces a minimum two-month notice period for tenants wishing to vacate a property. However, it allows for a shorter four-week notice if agreed upon by both parties​.

9. Tighter Regulation on Tenant Fees and Deposits

• The bill reinforces existing restrictions on tenant fees, ensuring landlords cannot charge excessive or unjustified fees.
• It also strengthens protections around tenancy deposits, ensuring tenants can recover deposits fairly and on time when they vacate a property​.

10. Penalties and Enforcement

• The bill introduces financial penalties for landlords who violate its provisions, such as unlawfully evicting tenants or failing to comply with rent increase rules.
• Local housing authorities are empowered to enforce these rules and levy fines, which can be as high as £40,000 in certain cases​.

11. Protection for Tenants During Property Sales

• Landlords wishing to sell their property must meet specific conditions, such as proving their intent to sell and having a tenancy of at least one year before serving notice. This prevents landlords from abusing property sales to evict tenants prematurely​​.

12. Improved Standards for Rental Properties

• The bill builds on previous housing regulations by strengthening the Decent Homes Standard, ensuring rental properties meet minimum living standards. This includes requirements around health, safety, and quality of living conditions​.

13. Landlord Redress Schemes

• The bill requires landlords to join a redress scheme, giving tenants a formal process to address complaints and disputes. Landlords who fail to join or comply with the scheme may face financial penalties​.

14. Database of Landlords

• The bill creates a database of landlords, allowing authorities to track landlords with histories of poor practice, such as unlawful evictions or substandard housing conditions. This measure helps to hold repeat offenders accountable​.

15. Prohibition of Rental Bidding

• The bill prohibits rental bidding, where tenants are forced to compete with each other by offering higher rent to secure a property. This ensures that rent prices are stated clearly and not subject to last-minute increases​ in favour of the highest bidder.

The Renters’ Rights Bill Journey in Parliament 

1. First Reading (House of Commons)

Date: Sep 2024 – completed

This is the initial introduction of the Renters’ Reform Bill in the legislative body. It’s a formal step that signals the start of the legislative process.

2. Second Reading (House of Commons)

Date: Sep 2024 – completed

The second reading involves a more detailed discussion and debate about the bill’s general principles. It usually takes place a few months after the first reading. However, in the case of the Renters’ Rights bill, the Second Reading commenced within the same month as the First reading, which indicates that the bill is moving rapidly and with little objection.

3. Committee Stage (House of Commons)

Date: October in – in progress

During this stage, the bill is examined in detail by a committee. They may propose amendments and make changes to the bill.

4. Report Stage (House of Commons)

Date: Unconfirmed 

During this stage, the bill is critiqued by MPs who take the floor and voice changes that they would like to see added to the bill. 

5. Third Reading (House of Commons)

Date: Unconfirmed 

The final version of the bill, as amended, is debated during the third reading. Further amendments may be made at this stage.

6. First Reading (House of Lords)

Date: Unconfirmed 

This is the initial introduction of the Renters’ Reform Bill to the House of Lords

7. Second Reading (House of Lords)

Date: Unconfirmed 

The second reading involves a more detailed discussion and debate about the bill’s general principles. 

8. Committee Stage (House of Commons)

Date: Unconfirmed 

During this stage, the bill is examined in detail by a committee. They may propose amendments and make changes to the bill.

9. Report Stage (House of Commons)

Date: Unconfirmed 

During this stage, the bill is critiqued by lords who take the floor and voice changes that they would like to see added to the bill. 

10. Third Reading (House of Lords)

Date: Unconfirmed 

The final version of the bill, as amended, is debated during the third reading. Further amendments may be made at this stage.

11. Royal Assent

Date: Unconfirmed 

Once both houses of the legislative body have approved the final version of the bill, it receives royal assent from the reigning monarch. This step is the formal approval that turns the bill into an Act of Parliament, but it’s not yet a law.

It’s possible for and Act of Parliament to be passed but to remain unenforceable as a law if certain conditions on which the act relies are not in place.

Is the Renters’ Rights Bill fair for landlords?

Many landlords consider the Renters’ Rights Bill to be unfair because it looks like it will it very difficult for landlords to get rid of “bad” tenants.

As things stand now, the only financially viable and almost guaranteed way that a landlord can evict a tenant is with a section 21 or a section 8. Each of these evictions typically cost a landlord about £1000 – £2000 in legal fees.

As things stand, only when the tenant is over 2 months in rent arrears can the landlord can leverage a section 8.  All other reasons for eviction generally use a section 21 to get rid of the tenant.

But this is all about to change, and it doesn’t look good for landlords.

How will the new Renters’ Rights Bill affect landlords?

The Renters’ Rights Bill could cause serious problems for landlords because in its current state it appears to contain a variety of ways for tenants to exploit landlords.

It remains to be seen whether these loopholes will get patched as the bill gets amended during the course of its swift journey through parliament.

Tighter Restrictions on Non-Urgent Evictions:

• The bill has restricted many traditional grounds for possession that landlords could use to reclaim their property. For example, landlords can no longer serve notice for repossession purely on a fixed-term expiry (the “no-fault” eviction method under ASTs). Instead, they must rely on specific grounds, such as:
  • Needing the property back for their own residence or that of a close family member (Ground 1 of the 1988 Housing Act).
  • Significant rent arrears or anti-social behaviour (serious grounds).

However, tenants could exploit these more stringent conditions by disputing the landlord’s grounds for possession. For instance, tenants might argue that the landlord does not genuinely need the property back for personal use, forcing the matter into court and delaying the process, all while remaining in the property rent-free.

Increased Scrutiny of Grounds for Possession:

• Under the bill, the court may closely scrutinise the landlord’s reasons for seeking possession. For example, if a landlord claims they need the property for personal or family use, the tenant might demand evidence and challenge the landlord’s claim. This opens the door for tenants to create delays through legal challenges, requiring landlords to provide proof, which can be costly and time-consuming. There will be no more section 21, so that means there’s no open and shut way to evict – everything will get dragged through the courts.

Rent Arrears Exploitation:

• One of the most common reasons for eviction is rent arrears. However, tenants can exploit the rules around rent arrears to delay eviction proceedings. For instance, under the bill:
  • Landlords may only seek possession if the tenant is in substantial or persistent arrears. A tenant could make partial payments strategically to remain below the threshold necessary for eviction under rent arrears grounds, effectively gaming the system to avoid eviction. As long as the tenant ensures that the owed monies don’t exceed 3-month’s worth of rent, the landlord won’t be able to do anything about it. This basically means that every tenancy will come with 3-months rent-free living, with no risk of eviction.
  • In some cases, tenants might choose to extend their rent-free period by continuing to withhold rent deliberately, knowing that the eviction process can take months or even longer if they dispute the arrears or raise other defences.
  • In addition, it looks likely that the courts will be flooded with eviction hearings in the absence of section 21, which will prolong timelines to getting a hearing, which will play in the favour or a non-paying tenant.

Challenging Landlord’s Evidence of Breach:

• For grounds like anti-social behaviour or property damage, the burden will be on the landlord to prove the tenant’s misconduct. A bad tenant could contest these claims, forcing the landlord to gather substantial evidence and go through lengthy legal proceedings. For antisocial behavour grounds to be solid, the landlords will need to convince neighbours to testify in court against their antisocial neighbour (the bad tenant) This could result in extended delays or prove completely impracticable since neighbours might be afraid of the unruly tenant.

Delays from Increased Notice Periods:

• The bill extends the notice periods that landlords must give in many situations. Tenants could exploit this by waiting until the last possible moment to contest a notice of eviction, forcing landlords to restart the process or address procedural defects. This tactic could delay eviction proceedings by weeks or months, allowing tenants to remain in the property without paying rent or addressing other breaches of the tenancy agreement.

Court’s Consideration of Tenant’s Circumstances:

• When landlords finally get a court hearing, courts are required to consider the tenant’s personal circumstances, such as their health, financial situation, or the availability of alternative accommodation. Tenants could potentially exaggerate or misrepresent their circumstances to persuade the court to delay or deny the eviction, particularly when claiming that they would face severe hardship if evicted. This provision, intended to protect vulnerable tenants, could be misused by those seeking to remain in the property unjustly.

Exploit no fixed term

• Based on the new bill, there will be no fixed term for tenancies, as all tenancies will be periodic from day one. This means a bad tenant could hand in their mandatory 2-month notice on the first day of their tenancy. So, if a person just needed short term accommodation for two months, instead of booking an Airbnb or a hotel, they could use long-term rental properties as a cheap alternative to short-term accommodation, which would save the tenant a lot of money vs the price of an Airbnb. But this would mean that the landlord would need to pay the letting agent to market the property all over again and find new tenants, which would cost the landlord about a month’s rent in letting agent fees, as well as losses arising from the property being vacant between short tenancies.

What can landlords do?

There is very little landlords can do to stop the bill. But the new bill does contain a new provision (Ground 1A) whereby if landlords are selling the rented property, then that in itself will be a grounds for repossession.

According to ground 1A, a landlord can seek possession if they intend to sell a freehold or leasehold interest in the property, or grant a lease of more than 21 years. However, this ground can only be used if:

• • The current tenancy began at least one year before the date the notice for possession is served.
  • The sale is not a compulsory acquisition, and the landlord is not a non-profit social housing provider​.
  • The landlord must provide proof of intention to sell.

Property Rescue can help landlords with uncooperative tenants. We will buy any property, even one with problematic tenants. This means you don’t need to jump through hoops to evict bad tenants. Simply sell the property to us, with the tenant in, and after the sale is complete, the bad tenant will be our problem. Get in touch with us.