The final stages of the Renters’ Rights Bill
min readThe Renters’ Rights Bill was introduced by the Labour Government to Parliament on 11 September 2024. One year later, the Bill has almost completed its passage and is set to receive Royal Assent shortly (albeit we do not have a date for this yet). The new legislation will bring about significant changes to the private rented sector, including the abolition of Section 21 Notices and Assured Shorthold Tenancies, and introduces the Decent Homes Standard to the private rented sector.
The main amendments proposed by the Lords which were up for debate were:
- Requiring an additional deposit in the amount of three weeks’ rent for those wishing to rent with pets – this was rejected, notwithstanding the Government’s consultations with insurance providers and underwriters, which suggest that such pet insurance products would not be available in an adequate form or a timely manner;
- The inclusion of MOD housing for service families within the legislation – this was rejected but alternative provisions were proposed by the Government to keep the standard of military housing in line with the standards imposed by the Bill;
- The inclusion of a new ground of possession (8A) for landlords wishing to house a carer for themselves or their spouses or dependents – this was rejected, partly on the basis of the perceived potential for abuse by landlords given the wide definition of ‘carer’, though this supposition was not supported by substantive evidence;
- The standard of proof in respect of discrimination being raised to the criminal standard of ‘beyond reasonable doubt’ – this was rejected. Difficulties in evidencing such discrimination were cited among the reasons for rejecting this amendment; and
- The length of time a landlord must wait before seeking possession in order to sell the property (under new Ground 1A) from 12 months to 6 months – this was rejected despite calls from other MPs that landlords would be unfairly prejudiced by this longer timeframe, and that 6 months would be fair.
On the whole, the Lords’ proposed amendments which sought to keep the Bill as fairly balanced between landlords and tenants were rejected by the Government, in favour of more tenant-friendly drafting.
The Government stressed that Royal Assent be given as a matter of absolute priority. The Bill will then require commencing legislation to bring it into force, and we are awaiting details of the date the Government will nominate as the Commencement Date. There is a desire for the Commencement Date to be set for the earliest practical date whilst also enabling a smooth transition into the new era of private renting: the timeframe of three months from the date of Royal Assent was proposed by one Labour MP.
Following the lively debate in the House of Commons on Monday evening, keen followers of the Bill will now await the date of Royal Assent, at which point the Bill becomes law. Until that time, it remains ‘business as usual’, and the provisions relating to the validity of Section 21 Notices and consequent proceedings remain relevant. Keep updated by reviewing our Essential Residential Hub, including our in-depth analysis of the Renters’ Rights Bill which will follow shortly, as well as any information about the Bill’s Royal Assent and the Commencement Date.
“Following Royal Assent, we will allow for a smooth transition to the new system, and we will support tenants, landlords and agents to understand and adjust to the new rules. We want to make that change as smoothly and efficiently as possible, and to introduce the new tenancies for the private rented sector in one stage." - Matthew Pennycook MP