The landscape of the private rental sector in the UK is on the brink of significant change, with the Renters’ Rights Bill introduced by the Labour Party in 2024. This bill follows the Renters (Reform) Bill, which was introduced by the Conservative government but did not pass before the government was dissolved. Here’s a breakdown of what letting agents need to know about these key pieces of legislation.

Abolishing Section 21

One of the most contentious issues in rental reform is the abolition of Section 21 “no-fault” evictions. The Conservative’s Renters (Reform) Bill proposed to eliminate these evictions but only after reforms to the court system. Labour’s Renters’ Rights Bill takes a more decisive approach, promising to abolish Section 21 immediately and introduce clearer, expanded possession grounds. This will allow landlords to reclaim their properties, when necessary, although the specifics of how this will be implemented remain unclear.

Rent Increases

Both bills address rent increases, allowing them if they align with market rates. However, Labour’s Renters’ Rights Bill aims to strengthen tenants’ protections against unjust rent hikes, particularly those intended to force tenants out. The Labour Party also plans to end rental bidding wars, offering further protection for tenants, though details are still forthcoming.

Decent Homes Standards

The introduction of a Decent Homes Standard for the private rental sector is a shared feature of both bills. The Conservative government initially proposed this standard to ensure minimum housing conditions, with enforcement by local authorities. Labour’s Renters’ Rights Bill goes further, incorporating Awaab’s Law, which imposes stricter timelines for addressing hazards in rental properties, ensuring that homes are safe and secure.

Pets in Lets

The right for tenants to keep pets has been a popular policy. Both bills include provisions for this, allowing tenants to request pets in their rental properties. Landlords cannot unreasonably refuse these requests and may request insurance to cover any potential damage caused by pets.

What Letting Agents Should Do

Letting agents should stay informed about the developments of the Renters’ Rights Bill and prepare for the potential changes it could bring. Understanding the new rights and obligations will be crucial in advising both landlords and tenants effectively.

This article is intended as a guide only and does not constitute legal advice. Visit gov.uk for more information on the Renters’ Rights Bill.