The Renters’ Rights Bill has become law, offering greater stability for Britain’s 11 million private renters, but being described as a ‘blow’ for landlords.
After going through Parliament, the bill, which includes the abolition of Section 21 ‘no-fault’ evictions, finally received royal assent last night.
The government said the new law would end a system that leaves tenants vulnerable to unfair treatment and insecurity.
Scrapping no-fault evictions, which the government says have left thousands of people homeless, will allow tenants to challenge poor conditions and unreasonable rent increases without fear of retaliatory evictions. Tenants can now cancel their rental agreement with a notice period of two months.
Prime Minister Keir Starmer said: “Every family deserves the dignity of a safe home.
“Millions of tenants have been at the mercy of rogue landlords or uncertain contracts for too long, with their future at stake. We are putting an end to that.
“A safe home is not just a home, it is the foundation for opportunity, security and a better life. No child should grow up without a home.”
However, there are fears that the reforms could ultimately have a negative impact on the rental market as they would force landlords to sell, reducing rental stock and increasing rents.
Chris Barry, director of London-based Thomas Legalthe agency told Newspage: “The independent landlord is no more. There is no doubt that this law will help many who have fallen victim to greedy landlords in the past, but this is another blow to landlords who have been hit by a monsoon of challenges in recent years.
“Landlords now face higher financing costs, higher taxes and, in some cases, extreme costs to restore building safety. Gone are the days when landlords achieved solid returns on income and capital, which begs the question for many: is there a better home for their money?
“There is now a real risk that we will see fewer landlords, and this could lead to higher rents unless companies step in to supply the market, which carries its own risks.”
Implementation of the law will be crucial and others have called for a ‘sensible’ transition period to help landlords adapt to the reforms. The government said the reforms would be implemented in the coming weeks.
Louisa Sedgwick, mortgage director at buy-to-let lender Paragon Bank, suggested six months would be sensible.
“A clear, well-communicated timetable for launch is essential,” she said, “to give landlords, letting agents and the wider sector sufficient time to understand and adapt to the changes.
“A hasty or fragmented rollout risks undermining confidence and could lead to a contraction of supply at a time when demand for rental properties remains high.
“We support the Bill’s ambition to improve standards and safety for tenants, but this must be balanced with practical implementation that recognizes the complexity of the sector. A phased approach, with clarity at each stage, will be critical to ensure a smooth transition and maintain a healthy, functioning rental market.”
What can you expect from the Tenants’ Rights Act?
Below you will find some measures included in the bill.
Evictions without debt: The core purpose of the law is to abolish section 21 evictions and move to a simpler rental structure in which all assured tenancies are periodic.
Reasonable possessions grounds: It will also ensure that the land of ownership is fair to both parties, giving tenants greater security, while landlords can get their properties back if that is reasonable.
Ombudsman: A new Landlord Ombudsman in the Private Rental Sector is being introduced to provide a prompt, fair, impartial and binding resolution to tenants’ complaints about their landlord.
Pets: Tenants have more rights to request a pet in the home, which the landlord must take into account and cannot refuse on unreasonable grounds. Landlords can purchase pet insurance to cover any damage to their property.
Personal circumstances: The law also makes it illegal for landlords and real estate agents to discriminate against potential tenants on benefits or with children
Offer: And it will end the practice of rent bidding by banning landlords and agents from asking for or accepting offers above the advertised rent.