Legal insight: The new Renters’ Rights Bill vs the old Renters’ Reform Bill

What changes from the Renters’ Reform Bill are being kept?

The majority of reforms that the previous government sought to introduce in the Renters’ Reform Bill have been kept in the Renters’ Rights Bill. These include:

• abolishing ‘no fault’ evictions - section 21 notices, which allow landlords to evict tenants without providing a reason, are still being abolished under this new Bill

• scrapping fixed term tenancies - all tenancies will become periodic tenancies (ie tenancies which do not have a fixed end date, they generally run month to month), allowing tenants security in their rentals and flexibility to end their tenancy with 2 months’ notice 

• introducing new grounds for possession (ie valid reasons for eviction) - possession grounds will be balanced fairly between the landlord’s and tenant’s rights and will ensure landlords can recover their property when reasonable

• establishing a Private Rented Sector Database - previously known as a portal, this is designed to help landlords manage their legal obligations and provide more transparency for tenants entering into rental agreements

• forming a Private Renters’ Ombudsman - an ombudsman is someone who is appointed to investigate complaints about companies and businesses. Introducing a Private Renters’ Ombudsman will allow tenancy disputes to be resolved with a legally binding decision out of court 

• protections against ‘backdoor evictions’ - tenants will be able to appeal against unreasonable rent increases intended to push them out (ie backdoor evictions). Landlords will only be able to increase the rent once a year in line with  the market rate

• the right to request a pet in the property - landlords will not be able to unreasonably refuse a request for a pet to live in rentals

• applying the Decent Homes Standard - tenants will be assured good quality rental homes, free from serious hazards and kept in good condition (this is part of a tenant’s right to a house which is fit for human habitation)

• banning discrimination against tenants with children or those receiving benefits 

• strengthening enforcement by local authorities - local authorities will be required to report on enforcement actions and provided investigatory powers

What’s new?

Since the Renters’ Reform Bill was originally introduced, there have been some developments within the law which are accounted for in this new Bill.

Awaab’s Law

Awaab’s Law was brought about by the unfortunate death of a toddler, Awaab Ishak, due to prolonged exposure to mould. The law focuses on the timescales for landlord responses to complaints regarding mould and damp in rented homes. It was introduced as part of the Social Housing (Regulation) Act 2023 and currently only applies to social rented housing. However, the Renters’ Rights Bill proposes that this law will be implemented and enforced within the private rented sector as well.

Awaab’s Law would imply terms into private rental Tenancy agreements, requiring private landlords to address issues of damp and mould in a timely manner - as would be set out in the new regulations. If there is a failure to comply, tenants may:

• seek action in court against their landlords for breach of contract, or 

• complaints may be escalated to the Private Rented Sector Landlord Ombudsman (once it has been established)

Whether the requirements for Awaab’s Law in the new regulations will mimic the ones set out in the Social Housing (Regulations) Act 2023 remains to be seen.

Ending ‘rental bidding’ practices

Rental bidding involves landlords putting prospective tenants in competition with each other through a bidding war designed to drive up rent prices. 

The new Bill plans to prohibit this practice. It will require letting agents and landlords to publish an ‘asking rent’ for the property and any requesting, encouraging or accepting bids above this published price will be forbidden. Local councils will be provided with powers to impose civil penalties on landlords (or their agents) who continue with this practice.

Strengthening rent repayment orders

Currently, where a landlord has committed an offence against their tenants (eg they have evicted a tenant illegally), they can be ordered by the court to repay an amount of the tenant’s rent. These orders are effective in deterring landlords from non-compliance with the law.

The changes the government plans to enforce include:

• expanding the reach of rent repayment orders to include superior landlords (ie the person who owns the property or who is a head landlord) and company directors

• implementing rent repayment orders as actions available to be taken against new offences included within the Bill

• increasing the maximum amount of rent landlords can be ordered to repay from 12 months to 24 months

• increasing the rent repayment order application period from 12 months to 24 months

• requiring the maximum rent repayment order amount to be used for repeat offenders

When can these changes be expected?

The Renters’ Rights Bill is currently making its way through Parliament and is still within the House of Commons. As such, many changes may be made to the Bill before it sees assent and there is no clear timeline for when the changes will come into effect.

A summary of the changes

The table below compares and contrasts the new Renters’ Rights Bill vs the old Renters’ Reform Bill: 

Rocket Lawyer’s legal documents and guidance will be updated to keep pace with these changes as they’re introduced. If you have any questions about complying with the law as a landlord, or your rights as a tenant, Ask a lawyer how Rocket Lawyer can help. For help with any other property law matters, see Rocket Lawyer’s catalogue of property documents and guides.