Following this week’s King's Speech, we now have more detail about the wide ranging changes that Labour intend to make to the Private Rental Sector (PRS).
They will introduce a Renters' Rights Bill which, whilst following roughly the same form as the Conservative's Renter's (Reform) Bill that was abandoned ahead of the General Election, includes some key differences (highlighted in the excerpt from the government's briefing paper set out below):
- Abolishing Section 21 ‘no fault evictions’, removing the threat of arbitrary evictions and increasing tenant security and stability. New clear and expanded possession grounds will be introduced so landlords can reclaim their properties when they need to.
- Strengthening tenants’ rights and protections, for example we will empower tenants to challenge rent increases designed to force them out by the backdoor and introduce new laws to end the practice of rental bidding wars by landlords and letting agents.
- Giving tenants the right to request a pet, which landlords must consider and cannot unreasonably refuse. Landlords will be able to request insurance to cover potential damage from pets if needed.
- Applying a Decent Homes Standard to the private rented sector to ensure homes are safe, secure and hazard free – tackling the blight of poor-quality homes.
- Applying ‘Awaab’s Law’ to the sector, setting clear legal expectations about the timeframes within which landlords in the private rented sector must make homes safe where they contain serious hazards.
- Creating a digital private rented sector database to bring together key information for landlords, tenants, and councils. Tenants will be able to access information to inform choices when entering new tenancies. Landlords will be able to quickly understand their obligations and demonstrate compliance, providing certainty for tenants and landlords alike. Councils will be able to use the database to target enforcement where it is needed most.
- Supporting quicker, cheaper resolution when there are disputes – preventing them escalating to costly court proceedings – with a new ombudsman service for the private rented sector that will provide fair, impartial and binding resolution, to both landlords and tenants and reducing the need to go to court.
- Making it illegal for landlords to discriminate against tenants in receipt of benefits or with children when choosing to let their property – so no family is discriminated against and denied a home when they need it.
- Strengthening local councils’ enforcement powers. New investigatory powers will make it easier for councils to identify and fine unscrupulous landlords and drive bad actors out of the sector.
There was no indication of when the Renters' Rights Bill will be introduced, but its title as well as the highlighted differences between the Conservative version, indicates that tenants really will be at its heart and landlords should start considering how their PRS portfolio is managed. It will be very interesting to see the detail when the Bill is published and we will keep you updated.
Forsters is on hand to provide you with updates and advice in this area, including a detailed review of your existing tenancy precedents and renewals processes.
“Legislation will be introduced to give greater rights and protections to people renting their homes, including ending no fault evictions and reforming grounds for possession”
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