Guide to the Renters’ Rights Bill
The Labour Government has proposed significant reforms to the private rental market through its Renters’ Rights Bill. Aimed at addressing housing insecurity and improving living conditions for tenants, the Bill proposes substantial changes that could impact both renters and landlords. In this article, we look at the key aspects of the Renters’ Rights Bill and how these changes could affect your property insurance.
What are the primary measures in the Renters’ Rights Bill?
The Renters’ Rights Bill seeks to create a fairer and more secure rental market, focusing on tenant protections and landlord responsibilities. Some of the key measures include:
- Abolition of Section 21 ‘no-fault’ evictions: This would prevent landlords from evicting tenants without using one of the other grounds for eviction, giving renters greater security. New grounds for eviction will be introduced, and some existing grounds will be amended.
- Rent control measures: The Bill proposes stricter regulations on rent increases, ensuring that landlords can only increase the rent once a year, up to the market rate. Rental bidding will no longer be allowed.
- Periodic tenancies and tenants’ rights to challenge: Tenants would have the right to challenge poor living conditions and unreasonable rent hikes more easily, along with moving all assured tenancies to a periodic basis, giving tenants more flexibility.
- Mandatory registration of landlords: Landlords will be required to register with a regulatory body to ensure compliance with standards related to property maintenance and tenant rights.
- Expansion of the Decent Homes Standard and Awaab’s Law: Landlords will be obligated to meet higher standards for the condition of properties, similar to current social housing regulations.
These reforms aim to make the rental market more tenant-friendly, but they also impose greater responsibilities on landlords, particularly in terms of regulatory compliance. For more detailed information on the tabled reforms, click here.
How does this compare with the previous Renters’ Reform Bill?
While both the Labour and Conservative Government have proposed reforms to improve conditions for tenants, their approaches differ in key areas. Some of the key differences include:
- Abolition of Section 21 ‘no-fault’ evictions
Both Bills proposed abolishing Section 21 evictions, which currently allow landlords to remove tenants without providing a reason. However, the Labour Government’s approach is paired with stronger protections for tenants, such as the ability to challenge rent increases more effectively. In contrast, the Conservative Bill did not include rent control measures, focusing more on simplifying the eviction process for landlords under Section 8 grounds for possession (for situations such as non-payment of rent or property damage).
- Rent control
One of the most significant differences between the two bills is Labour’s call for rent control. Labour proposes a cap on rent increases up to the market rate and a limit on rent increases to once per year. The Conservative Bill, however, did not propose any form of rent control.
- Mandatory registration of landlords
Labour’s Renters’ Rights Bill requires all landlords to register with a regulatory body to ensure compliance with new standards and tenant rights. The Conservative Bill, on the other hand, focused more on implementing a Property Portal that would act as a database for landlords and tenants.
- Periodic tenancies and the Decent Homes Standard
Labour proposes mandatory periodic assured tenancies to provide more flexibility for renters, whereas the Conservative Bill was less prescriptive on this issue, allowing landlords and tenants to agree on tenancy lengths that suit their needs. Both parties agreed on improving property standards, but Labour’s extension of the Decent Homes Standards to the private rental sector mirrors standards set for social housing.
How could these changes impact your property insurance?
As with all insurance policies, for a claim to be valid, you must meet the legal requirements of being a landlord. Therefore, as the legal requirements of being a landlord are likely to change, it’s important that landlords act on the new requirements to ensure that their insurance remains valid should they need to claim.
The Labour Government’s Renters Rights’ Bill marks a significant shift in favour of tenant protections, but they also bring challenges for landlords. Landlords may face increased legal risks that make comprehensive insurance policies more critical than ever. Understanding these changes and ensuring proper legal and financial protections will be vital for both landlords and tenants in the rental market.
