The Renters’ Rights Bill – The end of the current housing regime as we know it?

The government made it clear during July’s King’s speech that rental reform is a priority of theirs, and that there will be a new Renters’ Rights Bill.

This follows the previous government having abandoned their attempt to reform legislation surrounding residential rental properties – known as the ‘Renters (Reform) Bill’ – just before the general election.

Proposals

The government have confirmed their intention to abolish no fault evictions (Section 21) and to reshape the statutory grounds for fault evictions (Section 8).

Put simply, the government wants to make it more difficult for landlords to recover possession from good tenants, and easier in respect of troublesome tenants.

The new bill also includes some key proposals, namely:

• extending Awaab’s Law to the private rental sector
• encouraging tenants to challenge rent increases
• encouraging parties to better engage with alternative dispute resolution instead of using the courts.

Abolished no fault evictions

Section 21 will no longer be available for landlords to evict tenants on a ‘no fault’ basis. We rarely see landlords seek to recover possession when there aren’t any issues, but Section 21 allowed landlords to do so in a non-contentious way.

As the grounds for possession in fault-based evictions have changed, we expect more landlords to be forced to recover possession on the basis of rent arrears, breach of tenancy, sale or otherwise.

Given that the contentious court process is far more time-consuming and costly to deal with, we eagerly await the government’s proposals to improve capacity in the housing courts.

Rent increases

Contractual rent increases will be removed, and all increases to rent will only be able to be dealt with by service of a prescribed notice once a year.

This means that landlords will need to think carefully when they initially set the rent under a tenancy agreement, and they will need to ensure that any proposed rent increases are reasonable and reflect the market.

Ombudsman

Tenants will be able to raise concerns over their housing through the Housing Ombudsman. The aim of this new process will be to allow tenants and landlords to resolve disputes without reference to the court.

Again, we will need far more detail of how these schemes will operate before we can take a view, but we would welcome a more collaborative approach to allegations levied against landlords in contrast to the current system.

Awaab’s Law

The Social Housing (Regulation) Act 2023 introduced a new section of the Landlord and Tenant Act 1985, which added an implied term to all social tenancies for the landlord to comply with all ‘prescribed requirements’ relating to relevant defects. This formed the framework of Awaab’s Law.

It is proposed that all 29 of the housing health and safety rating system (HHSRS) hazards will apply, meaning that any defects which are reported to the landlord – within those 29, and any other relevant hazards – will need to be responded to within the prescribed timeframe.

The proposal includes that landlords will have 14 calendar days to investigate the reported defect. For some defects, the landlord may be considered immediately on notice from the commencement of the defect – for example, if it impacts any common parts or parts retained by the landlord (such as the roof of a block of flats). A formal complaints procedure will not be necessary and it will be sufficient for the 14 days, starting from when the landlord was made aware of the defect in any traditional way, such as by phone or email.

After the investigation, the landlord will then have two days to prepare and provide a report to the tenant, meeting a qualifying criterion. The landlord will then have seven days to commence work to rectify the defect(s), if a hazard is identified.

However, it then becomes less clear-cut in that landlords will then be required to complete the remedial works within ‘a reasonable period’ without delays. Clearly, there will be room for argument over whether works have been carried out within a reasonable period and so landlords are generally advised to instruct works to be carried out as quickly as possible, without any unwarranted or unnecessary delays. Any delays must be provided to the tenant as an update.

Action will be required as an emergency if a ‘significant and imminent risk of harm’ is reported to the landlord. This will require landlords to act within 24 hours to rectify the emergency hazard. It is proposed that if the property cannot be made safe within this timeframe, temporary accommodation or a decant should be offered to the tenant.

Summary

We are in for a period of massive change in housing law and we are still awaiting most of the detailed proposed changes. That being said, we have been expecting many of these changes for several years, so it is refreshing to receive some further clarity.

Over the coming months, landlords will need to pay close attention to legal updates and be ready for some extensive changes towards the end of the year.

Our expert team will provide updates when we can, so keep an eye on our website and social media platforms. You can also subscribe to our newsletters to receive the latest editions directly into your inbox.

If you require assistance with seeking to recover possession of a property or dealing with disrepair generally, please contact our specialist property lawyers.

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