"The Government has released full details of its Renters Rights Bill, which it presented to the House of Commons on Thursday."
Details include all measures named in the Bill - including the grounds for possession, rent increases, periodic tenancies and more - and plans to introduce a new Private Rented Sector Database.
The government says parts of the Bill aim to 'protect tenants from section 21 evictions' by abolishing this grounds for possession: the full table of grounds for possession and the notice periods required have been set out, and tenants will have a protected 12-month period at the start of tenancy during which landlords cannot evict them to move in or sell the property. Landlords will need to provide 4 months' notice to evict on these grounds. Protections for tenants in rent arrears have also been expanded - with the mandatory threshold for eviction raising from 2 months to 3 months.
The reforms will be introduced all at once - on this date, all existing private tenancies and any new tenancies signed will be governed by these new rules. The government says it will provide 'sufficient notice' of the system taking effect.
The Private Rented Sector Database will legally require landlords of assured and regulated tenancies to register themselves and their properties on the database, with penalties for failing to do so - with fines of up to £7,000 for failure to register before letting or advertising a property and up to £40,000 for providing fraudulent information. Landlords breaching the requirement to register being unable to get a possession order unless it is for anti-social behaviour by tenants. The government say this will increase transparency for renters and give local councils more data about PRS properties.
The Renters’ Rights Bill will:
- Abolish section 21 evictions and move to a simpler tenancy structure where all assured tenancies are periodic – providing more security for tenants and empowering them to challenge poor practice and unfair rent increases without fear of eviction. We will implement this new system in one stage, giving all tenants security immediately.
- Ensure possession grounds are fair to both parties, giving tenants more security, while ensuring landlords can recover their property when reasonable. The bill introduces new safeguards for tenants, giving them more time to find a home if landlords evict to move in or sell, and ensuring unscrupulous landlords cannot misuse grounds.
- 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. As now, landlords will still be able to increase rents to market price for their properties and an independent tribunal will make a judgement on this, if needed.
- Introduce a new Private Rented Sector Landlord Ombudsman that will provide quick, fair, impartial and binding resolution for tenants’ complaints about their landlord. This will bring tenant-landlord complaint resolution on par with established redress practices for tenants in social housing and consumers of property agent services
- 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. It will also support local councils – helping them target enforcement activity where it is needed most. Landlords will need to be registered on the database in order to use certain possession grounds.
- 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.
