Housing Market: Key Economic Indicators
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The Renters' Rights Bill is scheduled to have its second reading on 9 October 2024. This briefing provides background to the bill and an overview of its main provisions.
Renters' Rights Bill 2024-25 (1 MB , PDF)
The Renters’ Rights Bill [Bill 008 of 2024-25] was introduced in the House of Commons on 11 September 2024. The bill’s second reading is scheduled for 9 October 2024.
The bill implements commitments in the 2024 Labour Party manifesto (PDF) to reform the regulation of the private rented sector and is intended to “give greater rights and protections to people renting their homes, including by abolishing section 21 ‘no fault’ evictions and reforming grounds for possession”. Most of the bill’s provisions apply only to England.
The bill builds on the Renters (Reform) Bill which was introduced in the House of Commons by the Conservative government on 17 May 2023. The bill did not complete all its parliamentary stages before the dissolution of Parliament in May 2024.
The bill, together with its explanatory notes (which provide a clause-by-clause explanation of the bill) are available on the Parliament website: Renters’ Rights Bill publications.
This briefing explains the background to the bill and the bill’s main provisions.
The Renters’ Rights Bill would:
The Ministry of Housing, Communities and Local Government has published a guide to the Renters’ Rights Bill.
To date, the bill’s impact assessment has not been published.
The bill is intended to address a range of issues in the private rented sector, including those associated with assured shorthold tenancies.
Assured shorthold tenancies were introduced by the Housing Act 1988 and became the default tenancy in the private rented sector in England from 28 February 1997.
The sector has grown significantly since then; 4.6 million households rented their home from a private landlord in 2022/23, representing 19% of all households in England. A diverse range of households, including families with children, live in the sector.
Assured shorthold tenancies offer no long-term security of tenure. Section 21 of the 1988 act enables private landlords to repossess their properties without having to establish fault on the part of the tenant. It is referred to as the ‘no-fault’ ground for eviction.
Housing insecurity can have a range of negative impacts on people’s physical and mental health, finances, employment prospects, and ability to form support networks in their local community.
Lack of security also means tenants can feel unable to enforce their rights in relation to repairs and to challenge unreasonable rent increases. The private rented sector has a higher proportion of properties that do not meet standards than other housing tenures.
Additionally, private landlords in England are not required to belong to a redress scheme. Tenants are often left to negotiate with their landlords and enforce their rights through the courts. The court system can be costly and time consuming for both tenants and landlords.
Landlords have also reported problems with the current system of private renting. For example, they have had problems recovering properties when faced with anti-social behaviour or rent arrears. They use section 21 to avoid lengthy processes and the uncertainty associated with evicting tenants through a section 8 notice (which is used when a tenant has breached the terms of a tenancy). Landlords also report difficulties in accessing information and support to navigate the laws and regulations in the sector.
Although local authorities have extensive powers to address poor property conditions and management standards in the private rented sector, there’s evidence of low and inconsistent levels of enforcement between authorities. A lack of robust data and information on the sector is recognised as a key barrier to effective enforcement action.
Following Royal Assent, most of the act’s provisions would come into force on a date(s) to be specified by the Secretary of State in regulations.
The government “wants to see tenants benefit from these reforms as quickly as possible”. It therefore intends to introduce the new tenancy system for the private rented sector in one stage. Upon the commencement date, the new tenancy system would apply to all private tenancies – existing assured tenancies would become periodic, and any new tenancies would be governed by the new rules.
The BBC has reported that the government hopes to have the new tenancy system in place by summer 2025. The government says it “will work closely with all parts of the sector to ensure a smooth transition to the new system, and will provide sufficient notice ahead of implementation”.
The bill, in particular the abolition of section 21 ‘no fault’ evictions, has been broadly welcomed by organisations representing tenants, the housing sector and local government.
Responding to the introduction of the bill, the chief executive of the housing charity Shelter, Polly Neate, referred to it as “a watershed moment”. Generation Rent, a campaigning organisation that represents renters, said the bill was “an important step forward for our rights which should be celebrated”. Chief executive of the homelessness charity Crisis, Matt Downie, said it would “provide tenants with long-overdue security and protection against homelessness”.
Tenant organisations have urged the government to pass the bill as soon as possible to prevent landlords from rushing to evict tenants before the new legislation is in force. They have also called for stronger protections for tenants, in particular to prevent unaffordable rent increases. The Renters Reform Coalition (RRC) of charities and campaign groups wants in-tenancy rent increases to be limited to the lower of inflation or wage growth. It also considers all grounds for possession should be discretionary, so that courts can take a range of factors into account when considering a possession claim.
Landlord bodies initially opposed the abolition of section 21, contending it would prompt landlords to leave the sector. Both the National Residential Landlords Association (NRLA) and the Large Agents Representation Group have emphasised the tenancy reforms represent “the biggest change to the sector for over 30 years” and the sector must be given sufficient time to prepare for the changes. Landlords have also called for court reforms to improve the speed and efficiency with which possession claims are processed.
The provisions to establish an ombudsman service for the private rented sector and to require all private landlords to join have been broadly welcomed by all stakeholders, as has the establishment of a private rented sector database.
Enforcement measures are viewed as important by all stakeholders. London Councils and others are calling for adequate funding so local authorities can carry out effective enforcement.
Renters' Rights Bill 2024-25 (1 MB , PDF)
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