The Renters Rights Bill

On 11 September 2024, the government laid the Renters Rights Bill for its first reading. Whilst it still needs to be debated and approved by both Houses and ultimately receive Royal Assent to become law, there is a strong possibility that could happen by the start of next year. 

The Housing Minister, Matthew Pennycook, said that he hopes the Bill “will make very quick progress through the House of Commons and that we have that new tenancy system in place within the first half or around summer next year.”

Some of the key points:

1. Section 21 - The ban on “no-fault” evictions and abolition of Section 21 is the big one. Under the new proposals, landlords will no longer be able to evict tenants without giving a reason and fixed term Assured Shorthold Tenancies will no longer exist. All existing tenancies will be turned into periodic assured tenancies with a term of no more than one month. Importantly, there will be no transitional period for current or pre-commencement fixed term tenancies which are already in existence when the Bill becomes law. The intention is for all existing Assured Shorthold Tenancies (whether fixed term, contractual periodic or statutory periodic) to automatically become assured periodic tenancies on one single date, with the exception of tenancies subject to existing possession proceedings which are already going through Court.
2. Tenants can leave on 2 months’ notice - Tenants wishing to end their tenancies will be able to give 2 months’ notice to their landlord at any time.
3. Only Section 8 Notices can be used – Landlords wishing to recover possession will have to serve a Section 8 Notice specifying the ground(s) on which they rely. The main mandatory ground for rent arrears (Ground 8) will be amended so that the tenant must be at least 3 months’ in arrears when it is served and at the date of the Court hearing. The new notice period for Ground 8 will be extended to 4 weeks;
4. Landlord or family member wants to move in - Ground 1 (“Occupation by landlord or family”) can be used where the landlord or their close family member wishes to move into the property. Landlords cannot use this ground within the first 12 months of the tenancy and must give at least 4 months’ notice. It looks as though time spent under a previous/existing tenancy will be taken into account when calculating the 12-month period, and that 4 months’ notice could be given prior to month 8 to expire after month 12;
5. Landlord wants to sell - Ground 1A (“Sale of dwelling-house”) can be used where the landlord wishes to sell the property. Again, this ground can’t be used within the first 12 months of the tenancy and at least 4 months’ notice must be given. Evidence such as a letter from an estate agent confirming that the property is genuinely on the market for sale will likely be required. If a landlord has used Ground 1 or 1A to recover possession, they cannot re-market or re-sell the property within the period starting on the date of service of the notice and ending 12 months from the date of expiry of the notice (or 12 months from the date of the particulars of claim if a possession claim is issued). Local Authorities can impose fines of up to £7,000 if a landlord is found to be in breach;
6. Rent increases  - Landlords will only be able to increase the rent once a year in line with market rates. This can only be done by serving a Section 13 Notice in a prescribed form, giving at least 2 months’ notice of when the new rent is intended to take effect. Tenants will be able to challenge a Section 13 Notice by referring it to the First-Tier Tribunal. The FTT will then determine what the market rent should be. The new rent cannot be more than what the landlord originally proposed and it can’t be backdated (to avoid the tenant instantly going into arrears). It will apply from the date of the FTT determination.

We act for both landlords and tenants. Should you need advice or assistance, please contact our Liam Kreibich on 01332 225207 or at liam.kreibich@smithpartnership.co.uk.