The Renters' Rights Bill 2024 is designed to improve the private rental market in England by addressing key issues for both tenants and landlords. It aims to transform the current system, making renting more secure and fair. Here's a breakdown of the most relevant provisions of the Bill for landlords and property investors.
One of the most significant changes is the abolition of Section 21 evictions, commonly known as "no-fault evictions". Under the current system, landlords can evict tenants without providing a reason, often on short notice. The new legislation will eliminate this option and move all tenancies to a periodic structure, where tenants can remain in their homes until they choose to leave, or if a landlord invokes a legitimate reason for eviction.
This change provides tenants with more stability and prevents arbitrary evictions, but landlords still retain the ability to reclaim their property under fair possession grounds. This reform benefits landlords by creating clearer, more structured guidelines while also protecting tenants from unjustified displacement.
The Bill introduces revised and expanded possession grounds that landlords can use to recover their property. These include provisions for landlords who need to sell the property or move in themselves. In such cases, landlords must give tenants a four-month notice period, offering them more time to find alternative housing.
For situations where tenants fall into rent arrears, the Bill increases the threshold for eviction from two months to three months, providing tenants additional time to recover their financial situation. At the same time, landlords are protected by discretionary grounds that allow eviction if rent is persistently late or if tenants engage in antisocial behaviour or cause significant damage to the property.
Landlords will still be able to raise rents to match market rates. But rent increases will only be allowed once per year. The process for doing so involves serving a 'Section 13' notice, giving tenants at least two months’ notice before the new rent takes effect. If tenants believe the proposed increase is excessive, they can appeal to the First-tier Tribunal, which will determine whether the increase is justified.
The Bill also prohibits landlords from using rent increases as a means to indirectly evict tenants and prevents backdating of rent increases to ensure tenants are not suddenly burdened with unexpected debt.
The Bill introduces several new tenant protections, such as preventing discrimination against tenants with children or those receiving benefits. It also establishes a new Private Rented Sector Landlord Ombudsman to resolve disputes between landlords and tenants quickly and impartially. This will reduce the burden on courts and streamline the resolution process for both parties.
Landlords will be required to register their properties on a new Private Rented Sector Database. This database will help landlords stay informed about their legal obligations and ensure compliance. It will also support local authorities in enforcing regulations and allow tenants to make informed decisions about prospective rentals.
Additionally, the Decent Homes Standard will be applied to the private rented sector, ensuring that rental properties meet basic standards of safety and quality. Landlords will also be required to address serious hazards within a set timeframe under "Awaab’s Law".
For landlords and property investors, the Bill represents both challenges and opportunities.
The plan is to introduce the new tenancy for the private rented sector system in one stage. On this date the new tenancy system will apply to all private tenancies - existing tenancies will convert to the new system, and any new tenancies signed on or after this date will also be governed by the new rules.
In conclusion, the Renters' Rights Bill 2024 is a significant shift in the rental market, aimed at balancing the interests of tenants and landlords. To read the full document click here – Guide to the Renters’ Rights Bill.
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Haidee is our Personal Tax Director and is a fully qualified tax adviser, having achieved the ATT qualification in 2006. Tax efficiency being her main concern. Specialising in taxation, Haidee provides clients with advice on personal tax, PAYE services, VAT and social security. She also provides guidance to new start-up businesses.
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