What is the Renters’ Rights Bill?
The new bill will lay out new legislation including ending ‘no fault’ evictions whereby a landlord can evict a tenant for no specific reason, make it simpler for children and pets to reside at rented properties, and ensure a Decent Homes Standard protects the private rental sector to allow tenants to live in better value homes, alongside extending Awaab’s Law to the private rental market. This legislation was enacted due to the death of Awaab Ishak who died at the age of two when he was exposed to mould in a social house.
Other changes being considered include making renting fairer to both tenants and landlords by ensuring possession grounds result in greater tenant security while guaranteeing that landlords can recover their properties when reasonable.
The legislation aims to stop backdoor evictions by protecting tenants from above-market rents. A Private Rented Sector Ombudsman will be established to resolve tenant disputes, alongside a Private Rented Sector Database to assist landlords with their legal obligations.
Landlords will no longer be able to discriminate against tenants in receipt of benefits or those who have children, and it will be illegal for landlords and agents to accept offers above an asking rent for their property.
Finally, local authorities’ enforcement powers will be strengthened by enlarging civil penalties and a new package of investigatory powers and rent repayment orders will be extended to landlords.
What needs changing in it?
Property agents’ professional body Propertymark supports tenants having rights to challenge rogue landlords, however, it also believes that there are areas of this Bill that can be improved.
For example, when you rent a property, it is not compulsory for there to be an inventory or a list of the contents and conditions of the property to be included in the written tenancy agreement you sign with your landlord or agent. This means there is no way of ensuring that a property is in the same condition as when the tenant moved into it, thereby providing no reassurances for both the landlord/agent and the tenant. By making this compulsory, both parties are safe throughout an agreed tenancy.
Another provision of the Renters’ Rights Bill is to abolish fixed-term tenancies, which means you can only rent a property for a fixed amount of time as agreed between you and the agent or landlord. Whilst this type of tenancy may not suit all renters, it benefits others, such as students, who normally reside in a property for only one year. Therefore, Propertymark has argued that this type of tenancy should be protected so that those who benefit from fixed-term tenancies can continue to do so.
Also, with so much legislation being enacted by successive governments, letting agents are still not qualified to possess the right knowledge of any existing laws when helping tenants navigate through the legal complexities of renting. That is why Propertymark is arguing that the UK Government must ensure they are appropriately qualified while letting properties.
Finally, with so many taxes being imposed on landlords, as well as rising mortgage costs, some have no other option than to raise rents just to break even on their costs. For example, since 2015, landlords can no longer legally offset the costs of their mortgages against their tax bill. Propertymark would like this changed so that more landlords can be encouraged to invest in the private rental sector, thereby guaranteeing a sufficient level of supply, and bringing down rents in the long-term.
What does Propertymark’s own research say?
Propertymark members continue to highlight the ever-widening disparity in the number of homes available to rent when compared to growing demand. Propertymark’s July 2024 Housing Insight Report found that an average of 8 new registered applicants were on agents' books for each available property.
Nathan Emerson, CEO at Propertymark comments: “Legislation must be balanced when it comes to protecting the rights of both tenants and landlords, something Propertymark has long argued for. However, there must be a workable system implemented that delivers fairness for everyone. Tenants should be confident they have a stable and secure home, and landlords must be able to gain possession of their properties from disruptive tenants via adequate means. Propertymark will continue to make its argument to the UK Government as they attempt to legislate their Renters’ Rights Bill.”
