There is no doubt the Renters Rights Bill represents a significant overhaul of the way that the private rented sector functions. Following its introduction to parliament on 11 September 2024, myths and misconceptions have begun circulating throughout the property sector and amongst consumers about what the proposed legislation means in practice. With so many seeking clarity, we have set out below what is going to change and what will remain the same.
The Bill still has a long way to go before it becomes law, but the UK Government has made it clear that they intend to prioritise getting it through parliament and aim to have it enacted in part as early as next Spring / early Summer.
Myth 1 – Landlords cannot stop tenants from keeping pets
Whilst the Bill aims to make it easier for tenants to keep pets, there are several caveats. While tenants will get the right to request a pet, landlords will be able to stipulate that tenants have insurance in place to cover potential damages to their property. The Bill doesn’t try to pin down all of the possible reasons a landlord could reasonably refuse permission for a pet, so plenty of discretion remains. A superior landlord can prohibit pets, in which case the tenant can take the matter to the private rented sector ombudsman to receive a final decision.
Myth 2 No fault evictions have already been made illegal
The UK Government has been categoric; the Bill will remove Section 21, “no-fault” evictions. The latest comments from Housing Minister Matthew Pennycook, MP, suggest that the ban could be in place by the summer of 2025.
Lesser reported however is the fact that the Bill outlines a strengthening of Section 8, which will allow landlords to recover a property if they have a legal reason for doing so such as wishing to sell or move into it themselves. All the usual default grounds for possession will remain and in some cases become more landlord friendly. Like a Section 21 notice, landlords would need to serve notice to the tenants in the prescribed form with the required notice period. Notice periods are likely to be extended. If a tenant doesn’t leave, landlords will still need to go to court and provide evidence.
Myth 3 The Bill will stop rent increases
Rent increases often reflect broader economic conditions, such as rising mortgage interest rates and other associated costs. The Renters’ Rights Bill does not remove the possibility of rent increases; it aims to ensure they are fair and justified.
The key takeaway is that landlords can increase rents once per year to match the market rate, and tenants have the right to challenge this rent increase at the First-tier Tribunal, which will determine if this is the correct amount or should be lowered which is no different to the S13 process we already use.
Myth 4 Letting agents don’t do anything about damp and mould issues
Here at Pure we already maintain and inspect homes regularly. Issues of damp and mould are often resolved with appropriate heating and ventilation, and by co-operation between our landlords and tenants. Through a Decent Homes Standard and Awaab’s Law the Bill will reinforce the existing good practice already in place for the majority of agents and crack down on the small minority of rogue operators. As per our normal practice we will be in touch with all our managed tenants throughout October providing advice and handy tips on managing the very common issue if condensation on certain property types.
In a nutshell whilst the Renter Rights Bill will change the way we as agents need to operate it should have little impact on our landlords. The main thing to keep in mind is the need for a bit more forward planning in regaining possession of you need to occupy the house yourself or wish to sell.
Watch out for more updates as the bill moves through Parliament however if anyone has any questions at this stage please do not hesitate to contact Lee Bilbrough – lee@purepropertylettings.co.uk