The new Renters’ Rights Bill is Labour’s version of the Conservatives’ Renters (Reform) Bill, which was scrapped following Rishi Sunak’s surprise call for an election.
This new bill aims to “fundamentally reform the private rental sector” and improve the quality of housing in it.
It also seeks to “balance the playing field” between landlords and tenants by strengthening tenant security, rights, and protections. This bill will apply to England.
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What will the Renters’ Rights Bill include?
Since the Bill was formally introduced in the House of Commons in September 2024, we have more details about its specific proposals. Let’s begin with some entirely new proposals that weren’t part of the Renters (Reform) Bill:
1. Ban on rental bidding wars
Landlords and agents would be prohibited from accepting or encouraging offers above the listed rent. The bill would grant local authorities the power to impose fines of up to £7,000 if they are convinced “on the balance of probabilities” that the landlord or agent has violated this rule.
2. Limits on in-tenancy rent increases
Landlords would only be able to raise the rent for current tenants by using a Section 13 notice once a year. The increase would be limited to the lower of market rates or the amount proposed by the landlord.
Landlords would need to give two months’ notice, and tenants could challenge the increase through the First-tier Tribunal. The rent wouldn’t increase until the tribunal has made its decision. Like with the Renters (Reform) Bill, landlords would also be banned from including rent review clauses in their tenancy agreements.
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3. Extension of Awaab’s Law to the private rented sector
Awaab’s Law, introduced following the tragic death of Awaab Ishak in 2020 from mould inhalation in his social housing flat, requires social housing providers to fix hazards within a set timeframe. The bill aims to extend this rule to private rentals, but it doesn’t yet explain how it will work for private landlords.
The UK Government has stated that renters in England would be able to challenge unsafe conditions and that landlords who don’t fix serious hazards could face fines of up to £7,000.
4. An expansion of Rent Repayment Orders
New offences would be added to the list for which the First-tier Tribunal can impose a Rent Repayment Order. These additional offences would include knowingly or recklessly misusing a possession ground; breaching restrictions on letting or marketing a property; and continuing to violate tenancy reform rules.
Below, you’ll find the remaining changes proposed in Labour’s Renters’ Rights Bill. Keep in mind that these proposals could be significantly amended or even removed entirely as the bill progresses through parliament.
5. Abolition of Section 21 ‘no-fault’ evictions
Should the bill become law, it would abolish Section 21 evictions for both new and existing tenancies at the same time. This is different from the Renters (Reform) Bill, which only planned to end Section 21 evictions for existing tenancies once the court system was improved. For now, Section 21 notices remain in effect, and you can still issue them using our free tool.
6. End of fixed-term tenancies:
All tenancies would shift to periodic agreements, with intervals of no more than one month. Tenants would be able to give two months’ notice to end the tenancy at any time, using any written method.
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7. New and amended grounds for possession
The bill would introduce a new ground for landlords who intend to sell their property and amend the existing ground for landlords or their families moving in. These grounds wouldn’t apply during the first 12 months of a tenancy.
Moreover, landlords would be required to give four months’ notice and would be prohibited from marketing the property for 12 months after the notice expires or a court claim is filed.
Additionally, a new ground for student possession would be introduced, requiring landlords to give prior notice and applying only to Houses in Multiple Occupation (HMOs) rented entirely to students.
The bill would also amend the mandatory rent arrears ground (Ground 8), increasing the required arrears from two to three months, both at the time the notice is served and at the hearing. The notice period would remain at four weeks, as also set out in the Renters (Reform) Bill.
Additional changes proposed by the bill:
- Ban on blanket bans: Landlords would be prohibited from discriminating against tenants receiving benefits or those with children.
- Introduction of a Decent Homes Standard: A new standard would be introduced for the private rented sector, setting minimum quality requirements for rental properties.
- A digital private rented sector database: A database would be created to provide essential information for landlords, tenants, and local councils.
- Strengthening local authority enforcement powers: Councils would be granted greater powers to investigate and enter rental properties. Financial penalties for non-compliance would likely be significantly increased.
- Establishment of a new ombudsman service: The ombudsman would provide impartial, binding resolutions to tenant-landlord disputes, reducing the need for court action.
When will this new Bill become law?
The Bill has a long journey through parliament before it can become law, during which it may undergo significant revisions or even be rejected altogether.
In the meantime, Section 21 evictions remain unchanged, allowing you to use our free eviction-serving tool to serve one correctly and legally.
Does that include Awabs Law and the Decent Homes Standard?
Hi David,
These are proposed policies that have not yet come into effect – and may never do so.
Should these policies come into effect for the private rented sector, our tenancy agreements will be promptly updated to adhere to the new rules and regulations.
My point was really that those two things, (if they become law) are more a factor of ongoing management than tenancy creation. Telling Rent Now users that they neednt worry about any regulatory changes in the bill could be misleading.
I agree in principle that rents are set by the market, not by the individual circumstances of landlords. However, its likely that this landlord was faced with a choice of evict and sell up asap or increase the rent to cover costs that he could not cover any other way. £700 is a massive monthly increase, so I can only assume that the tenant was previously benefitting from an unsustainably low rent.
As to whether the rent should “pay his mortgage”, the answer is that any business that operates from premises theyve bought must set their pricing to cover all their business costs including any borrowing. Whilst larger businesses, like Tesco can absorb sudden large increases by increasing their prices incrementally over time, smaller businesses cannot and if no-one is willing to buy at the price they set, they fold.
“only the cost of the mortgage”??? No repairs then? no upgrading? No registration payments tp L/A? Agents costs? Elec and gas Certs? Epc ? Only Static . Cuckoo. Cuckoo. is the land you are in .