Here's a quick update on the Renters Rights Bill (RRB), which had its first reading in Parliament last week. It was essentially a formality, with the Housing Minister announcing the name of the Bill. The second reading also took place, and this is where the real discussion on the key aspects happened before moving to Committee Stage following a vote.
Here's a quick update on the Renters Rights Bill (RRB), which had its first reading in Parliament last week. It was essentially a formality, with the Housing Minister announcing the name of the Bill. The second reading also took place, and this is where the real discussion on the key aspects happened before moving to Committee Stage following a vote.
Now, the Bill itself is quite lengthy—226 pages, to be exact—but there are several notable changes we need to be aware of. A lot of it seems to mirror the previous Tory Renters Reform Bill. My goal today is to highlight the key differences and what you should know moving forward.
TIMESCALE
First off, the timescale. According to the Housing Minister on BBC Breakfast today, the government aims for this legislation to take effect by early 2025 or the summer at the latest. It’s important to note that this will affect both new and existing tenancies on the same day once it’s enacted.
BAN ON BIDDING WARS & HIGHER RENTS
Now, a key point is the ban on rent bidding wars. Essentially, when you advertise a rental price, you won’t be able to accept or encourage offers above that amount. If you do, you could be fined up to £7,000 by your local council. It’s still unclear how this will be enforced, but I’ll be looking into the local council’s guidance on this.
NO MORE FIXED TERM TENANCIES
Another major change is the end of fixed-term tenancies. Moving forward, all tenancies will be monthly or no longer than 28 days, though shorter periods like weekly or fortnightly are still possible. If a tenant wants to leave, they’ll need to give two months’ written notice. There’s still some ambiguity around joint tenants, but I’ll update you as more information comes out.
POSSESSION NOTICES
One of the biggest changes for landlords is the removal of Section 21 notices. Going forward, we’ll only be able to use Section 8, with stricter notice requirements for certain grounds like family moving in or selling the property.
RENT INCREASES
As for rent increases, they’ll now be restricted to once a year under Section 13. Tenants will have the ability to challenge rent increases through the First Tier Tribunal, which could cause significant delays before any new rent takes effect.
OTHER CHANGES
There are a few other points worth noting, including stricter rules around damp and mould, as well as the application of the decent homes standard to the private rented sector.
We’re expecting more details to emerge, but for now, these are the key takeaways. Stay tuned for further updates as the Bill progresses. Thanks for reading, and please reach out if you have any questions or concerns.
James Carver
Head of Carver Lettings