Today, the Renters’ Rights Bill is set to be presented in Parliament, marking a significant moment for tenants and landlords across the country.
The bill was introduced to address long-standing issues in the private rented sector (PRS), with a focus on improving protections for renters and enhancing housing standards.
Timothy Douglas, head of policy and campaigns at Propertymark, said: “Having met with the Housing Minister, it is clear his intention is for these reforms to overhaul private renting in England.
“They are a long-held manifesto commitment from Labour, with the new Government at Westminster using their mandate for reform.”
The Renters’ Rights Bill, known in its previous iteration as the Renters’ (Reform) Bill, has been in development for several years, first promised by Theresa May’s Government in 2019, driven by increasing concern over the power imbalance between landlords and tenants.
Set to be passed by the previous Conservative Government in spring, the bill was shelved in May of this year prior to July’s General Election.
The bill emerged in the wake of reports of sub-standard housing conditions, unpredictable rent increases, and the widespread use of no-fault evictions.
Advocates of the bill argued that current legislation does not provide enough protection for tenants, many of whom face rising rents and insecure housing.
Housing charities and tenant unions have been vocal in supporting stronger regulations to ensure fairer treatment for renters, particularly in light of rising living costs.
Other industry professionals have expressed concern over the potential pressures and backlog that the passing of the bill may have upon the already over-subscribed court system.
Douglas said: “Whilst Propertymark acknowledges the drive towards improved standards, the UK Government must fully understand and recognise the impact that these changes will have with agents up and down the country left wondering how this legislation will help meet the much-needed demand for homes for people to rent.
“With such significant changes to the current tenancy regime there must be a commitment to ensure the court system and grounds for possession are robust and fit for purpose.
“Furthermore, without an enhanced, effective and well-resourced enforcement regime from local authorities it is unlikely that any benefits from the reforms will be realised.”
Now under the purview of a new Labour Government, The Renter’s Rights Bill is expected to include several key provisions, including the much-contested abolition of Section 21 evictions.
Also known as ‘no-fault evictions’, this reform would mean landlords can no longer evict tenants without providing a legitimate reason, such as rent arrears or breach of contract.
The bill also proposes stricter regulations on rent increases, including limits on how frequently rents can be raised and setting a maximum percentage increase per year, as well as aims to introduce higher minimum standards for rental properties, with landlords facing penalties for failing to meet requirements like safe living conditions and energy efficiency standards.
Oli Sherlock, managing director of insurance at Goodlord, said: “The stuttering, broken-record loop the industry has been stuck in over this legislation may finally be coming to an end from today.
“It won’t necessarily all be music to the sector’s ears, but we will at least have some clarity.
“The biggest change between the previous Renters (Reform) Bill and the new Renters Rights Bill will be around Section 21.
“The Conservative Government offered the industry something of a fudge around the scrapping of no fault evictions, with vague promises to introduce it once the courts were ‘ready’.
“Whilst we agreed with the sentiment of this, there was no timeline or action plan announced alongside.
“In contrast, it looks like the Labour Government will scrap Section 21 outright and the courts will need to find a way to cope.”
Lauren Hughes, head of customer success at Vouch, added: “At first glance, this Bill will look very similar to the previous legislation, but once you scratch the surface critical differences will emerge.
“Labour has already indicated that they will go further around rent increases – including ending bidding wars and challenging unfair rent increases.
“However, in a way that has become familiar over the years, we have thus far been given little detail about how they will achieve this.
“Likewise, the Government has decided to take the standard of private housing further by integrating the Decent Homes Standards and Awaab’s Law.
“And, most crucially, it appears that Section 21 will be scrapped as soon as the Bill passes into law. It’s a seismic piece of legislation.
“The industry will cope with the changes – it always does – but that doesn’t mean it will be a smooth or painless transition.”
