Renters' Rights Bill 2024: What landlords need to know

The Renters' Rights Bill 2024 introduces sweeping changes to the private rental sector, aiming to improve tenants’ security, rights, and living standards. As a landlord, it's crucial to understand how these reforms will impact you and your properties. Here's a breakdown of the key elements of the bill and what they mean for you.

1. Section 21 Evictions: A major shift

The biggest headline from the Renters' Rights Bill is the abolition of Section 21 ‘no-fault’ evictions. This change is designed to provide more stability for tenants, but it also shifts how landlords can manage their properties.

• Ending Section 21 Evictions: Landlords will no longer be able to evict tenants without a valid reason. All tenancies will become periodic, meaning tenants can stay in their homes as long as they wish, provided they don’t violate the tenancy agreement.
• Impact on Your Flexibility: While you can still regain possession if you intend to sell the property or move in, you’ll need to follow the new guidelines, which provide tenants more time to find alternative housing.

2. Simplified Tenancy: What this means for you

Under the new rules, all assured tenancies will convert to periodic tenancies. This gives tenants more power to challenge rent increases and contest evictions, which could alter how you manage your rental income.

• Periodic Tenancies: Tenants can leave the property whenever they want, as long as they give the appropriate notice, but landlords will no longer be able to rely on fixed-term contracts to ensure turnover or manage rent reviews.
• Rent Increases: You can still raise rent, but only to match market rates. If a tenant feels the increase is unfair, they can appeal to an independent tribunal. This could potentially reduce your ability to increase rents freely, especially in competitive markets.

3. Increased Tenant Protections: How they affect your rights

The Renters Rights Bill includes additional protections for tenants designed to prevent “backdoor evictions” and unfair rent increases.

• Protection Against Evictions: If you need to sell the property or move in, tenants will now receive extra time to find a new home, meaning you may have to adjust your timelines when planning sales or property refurbishments.
• Rental Bidding Ban: The new bill prohibits landlords and agents from accepting offers above the advertised rent, which can affect how you price your properties in high-demand areas.

4. Ombudsman and Dispute Resolution: A new layer of accountability

One of the key reforms is the establishment of a Private Rented Sector Landlord Ombudsman. This independent body will offer tenants a quick and fair way to resolve disputes, similar to what’s already in place for social housing.

• Landlord Ombudsman: Landlords will need to ensure they adhere to this new system, as it introduces a new level of oversight. Disputes over maintenance, evictions, or rent will now go through this body, adding a layer of accountability.

5. Renter Rights to Pets: Prepare for new requests

Another major change is that tenants will have the right to request pets, which landlords cannot unreasonably refuse.

• Pets in Rentals: This means you may need to review your policies on pets, as well as assess any potential impact on property wear and tear. Landlords can still impose reasonable conditions, like requiring pet insurance or increasing deposits for potential damage.

6. Improved Living Standards: Keeping rentals up to code

The new legislation also focuses on ensuring that rental homes meet higher living standards, meaning you may need to be more proactive about property maintenance.

• Homes Standard: Properties will now need to meet a new standard that protects tenants from serious hazards, requiring you to act quickly to fix any safety concerns.
• Awaab’s Law: Landlords will have a set timeframe to address serious issues like mould, damp, or other hazards, with penalties for delays or non-compliance.

7. Anti-discrimination measures: New rules for tenant selection

It will now be illegal for landlords to discriminate against tenants with children or those on benefits.

• Inclusive Tenancy: If you currently filter out tenants based on their family status or income source, you’ll need to change these practices. The bill enforces fair treatment and non-discrimination, ensuring all applicants are given equal consideration.

8. New database and compliance requirements

The bill also introduces a new Rented Private Sector Database, designed to help both landlords and tenants stay informed about rights and obligations.

• Database Compliance: You’ll need to register your property and keep your information up to date. This new system ensures greater transparency and could play a key role in demonstrating your compliance with the law, particularly when it comes to gaining possession of your property.

9. Prepare for changes now

The rollout of the new tenancy system will happen in a single stage, meaning that all private tenancies will convert to the new periodic model at once. Landlords won’t be able to serve Section 21 or old-style Section 8 notices anymore, so it’s essential to familiarise yourself with the new legal landscape.

What you should do next

• Review your tenancy agreements: With the transition to periodic tenancies, you’ll need to ensure all your contracts align with the new system.
• Assess your rental review practices: Make sure your rent increases are in line with market rates to avoid disputes or appeals.
• Plan for property sales: If you’re considering selling, keep in mind the additional time tenants will need, and be prepared for the extended process.