The Renters' Rights Bill aims to reform the rental market, including no-fault evictions and balancing the rights of tenants and landlords.
It was first introduced to Parliament in September 2024 and four months on the Bill is progressing through Parliament, aiming to transform the private rental sector by enhancing tenant protections and establishing clearer regulations for landlords.
It is currently on track to become law in Spring 2025.
Latest Current Legislative Status:
House of Commons Approval: The bill successfully passed through the House of Commons on January 14, 2025.
House of Lords Proceedings: It has commenced its journey in the House of Lords, with the second reading scheduled for February 4, 2025.
Any new proposed legislation requires 3 readings in the House of Commons before passing to the House of Lords.
After the Bill's third reading in the Lords, any amendments proposed by the Lords will be sent to the Commons for consideration. This ensures both Houses agree on the final content. As a result, further changes may occur before the Bill receives Royal Assent.
As the Bill progresses there will typically be further amendments and discussion points - the two most recent ones are highlighted below:
Recent Amendments and Discussions
Ban on Advance Rent Payments: A significant amendment prohibits landlords from requiring more than one month's rent in advance. While intended to alleviate financial burdens on tenants, concerns have been raised that this could disadvantage individuals without a UK credit history, such as international students, who often rely on advance payments to secure housing.
Landlord Concerns: Landlords are continuing to sell up their rental properties and there is concern if they continue to exit the rental market this could inadvertently reduce the availability of rental properties and impact vulnerable tenants. 19% of landlords sold a property in 2024, compared to 8% in 2023.
Abolition of Section 21 Evictions: The bill proposes ending "no-fault" evictions, requiring landlords to provide valid reasons under Section 8 grounds to regain possession of their properties.
Transition to Periodic Tenancies: All assured tenancies will become periodic, offering tenants greater flexibility and security.
Regulation of Rent Increases: Landlords will be limited to one rent increase per year, with a mandatory two-month notice period.
Prohibition of Rental Bidding: The bill seeks to ban practices where tenants are encouraged to bid above the advertised rent, ensuring fairness in the rental market.
Right to Keep Pets: Tenants will have the right to request permission to keep pets, which landlords cannot unreasonably refuse.
Establishment of a Landlord Database: A new Private Rented Sector Database will be created to enhance transparency and accountability.
Implementation of the Decent Homes Standard including Awaab’s Law: The bill introduces a standard to ensure rental properties meet minimum quality criteria.
Conclusion
The Renters' Rights Bill represents a comprehensive effort to reform the private rental sector in England, focusing on enhancing tenant protections and ensuring fair practices. As the bill progresses through Parliament, it continues to be a focal point of discussion among tenants, landlords, and policymakers, each considering its potential impacts on the housing market. One thing is for sure, once the Bill becomes Law there will be significant changes to the rental market.
Remember, CreditLadder can help you improve your credit score.
CreditLadder can improve your credit position by reporting your rent payments. CreditLadder is the first way to improve your credit score and position across all four of the main Credit Reference Agencies in the UK, namely Experian, Equifax, TransUnion and Crediva. Building up a high credit score has a lot of benefits, including helping you access finance at better rates - this can also help save you money.
CreditLadder also runs a free mortgage application service in partnership with Tembo which will tell you how much you could borrow.
Remember the content provided in this article is for information purposes only and should not be considered as advice.
