Labour has announced its long-awaited plans to reform how rental properties are managed in England.
Introduced in the King’s Speech, the Renters Rights Bill is Labour’s version of the Renters (Reform) Bill, which did not pass through Parliament before the end of the Conservative Government.
Currently in its draft phase, this new legislation aims to “give greater rights and protections to people renting their homes”. However, what does the Bill contain and when will it be made into law?
What does the Renters Rights Bill contain?
The Renters Rights Bill aims to overhaul the private rental sector, making things fairer for tenants while protecting the rights of good landlords. Central to this is the removal of Section 21 repossessions from the private rented sector, which Deputy Prime Minister Angela Rayner originally proposed to abolish from day one of a new Labour government.
This Bill will apply to England and include several key policies:
Abolish Section 21
The Bill will abolish Section 21, introducing new grounds for possession so landlords can reclaim their properties if they need to.
Its inclusion in Labour’s draft version of the Bill should come as no surprise. However, since only around 6% of tenants are evicted this way, it shouldn’t have too much of an impact on landlords, who will be given strengthened grounds for possession that are clear and comprehensive.
Strengthen tenants’ rights and protections
Tenants will gain the power to challenge rent increases, empowering them to contest unreasonable rises designed to force them out.
Furthermore, the Bill proposes to end the practice of rental bidding wars by landlords and letting agents.
Make it easier for tenants to keep pets, subject to landlord approval
The proposed legislation dictates that landlords must consider and cannot unreasonably refuse a tenant having a pet in their rental property. However, landlords can request insurance to cover any potential damage a pet might create.
Introduce a Decent Homes Standard
The Bill will introduce a Decent Homes Standard for the private rental sector in a bid to reduce the number of poor quality rental homes being provided for tenants. Under new legislation, all privately rented properties will need to be safe, secure and hazard free.
Apply Awaab’s Law to the private rental sector
Landlords will be required to investigate and fix reported health hazards within specified time frames under Awaab’s Law.
Originally introduced in the Social Housing Regulation Act 2023, the law is designed to improve living standards in rental homes, ensuring tenants are empowered to challenge any landlords who fail to do this.
Create a digital private rented sector database
A digital private rented sector database will be established, consolidating information for landlords, tenants, and councils.
- Tenants will gain access to essential details to make informed decisions when starting new tenancies.
- Landlords will easily understand their legal responsibilities and how to demonstrate compliance.
- Councils will be able to efficiently target enforcement efforts, improving overall housing standards by focusing on areas with the most non-compliance.
Introduce a new property ombudsman
A resolution for disputes is proposed through the introduction of a new ombudsman. Designed to circumvent expensive court proceedings, this has been introduced to provide “a fair, binding and impartial resolution, to both landlords and tenants”.
Although it would be mandatory for all landlords to join the ombudsman, landlords using a letting agent to manage their properties already benefit from those agents being part of mandatory redress schemes.
Propose anti-discrimination measures
The legislation will make it illegal for landlords to discriminate against tenants who receive benefits or have children.
Strengthen local council enforcement powers
Local councils’ enforcement powers will be strengthened, making it easier for councils to identify and penalise bad landlords and drive them out of the sector.
When will the Renters Rights Bill become law?
It’s important to remember, the Renters Rights Bill is still in the early draft stages and there is currently no proposed timeline for this to become law. Draft bills of this kind are usually considered by the relevant select committee before the Government then considers bringing forward a full bill to be brought into law. In fact, it’s unlikely we’ll receive the full details until October.
We will keep this page updated as soon as new information is known.
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