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Renters' Rights Act becomes law – here's what you need to know
The legislation will abolish Section 21 ‘no fault’ evictions
After a long journey, the Renters' Rights Bill has received Royal Assent, but this doesn't mean that all of its provisions are now in force.
Instead, over the coming weeks, the Government will communicate its plans for how the new legislation will be implemented.
Here, we outline what it contains and how it could affect you.
Renters' Right Act becomes law
On Monday 27 October, the Renters' Rights Bill received Royal Assent, but what does this mean for tenants and landlords?
At this stage, we are waiting for further information from the government for its implementation plans, which it will communicate 'as soon as possible', 'in the coming weeks'.
In the House of Commons, Matthew Pennycook, minster for housing and planning, said the government 'will balance the need to act quickly, so that tenants can soon benefit from the new rights and protections introduced by the Bill, with ensuring that the sector has sufficient time to adjust and prepare for a significant change in regulation'.
Some parts of the Renters' Rights Act will require secondary legislation, such as plans to introduce a legally binding Decent Homes Standard for the private rented sector, which would require all rental properties to meet a minimum standard of quality and safety. Any part of the Act that requires secondary legislation will take much longer to come into force.
- Find out more: renting a home: what you need to know
What is included in the Renters’ Rights Act?
The Renters' Rights Act contains a series of reforms that the government claims will improve the private rented sector for tenants.
Some of the key plans are as follows:
- No-fault eviction ban: a ban on Section 21 ‘no-fault’ evictions is the most headline-grabbing reform. After the first 12 months of the tenancy, landlords will still be able to evict tenants with four months' notice in some circumstances, such as if they need to move in to the property themselves.
- Rent protections: rent increases will be limited to one per year. Letting agents and landlords will be required to publish an asking rent for their property and will be prohibited from accepting bids above that price.
- Lets with pets: tenants will be allowed to request to keep a pet, with landlords no longer able to impose blanket bans on animals.
- Standards of living: a new Decent Homes Standard will be introduced, along with an extension of Awaab’s Law. This will set clear deadlines for landlords to address serious issues with properties. If they fail to meet these, tenants will be able to take legal action against them.
- End of blanket bans on tenants: blanket bans on tenants who receive benefits or have children will be outlawed. These changes will initially apply in England and Wales, with plans to extend them to Scotland at a later date.
- Rented sector database: a database will be introduced to consolidate key information for landlords, tenants and local authorities.
- Student housing: enhanced protections will be given to students to prevent them from feeling pressured to sign housing contracts early in the academic year.
- Ombudsman: landlords will have to pay a mandatory fee to fund a new Private Rented Sector Ombudsman that will deal with disputes.
How will the Renters' Rights Act help tenants?
Tom Darling, of the Renters’ Reform Coalition, says: 'Renters will have more secure tenancies protected for at least a year, bidding wars and extortionate demands for rent in advance will be banned, and landlords won't be able to evict without reason.
'Whether renters will feel the full extent of the benefit of these changes depends on them being informed of their new rights – many are already unaware of their existing ones. For the Bill to deliver on its aims, it will need proper enforcement, which means providing local councils with the guidance and resources they will need to protect tenants and hold landlords accountable.
'Another major caveat is that affordability is not addressed by the legislation. Building homes alone won’t resolve the affordability crisis, and we’re calling on the government to set up a National Rental Affordability Commission to look at ways to get a grip on soaring rents.'
What's happening to the cost of renting?
The cost of renting continues to rise. Zoopla found that the average rent for a new let in the UK is £1,301 per calendar month (pcm). This has risen by £221 (17%) over the past three years.
In some areas, the increases have been even steeper. In Manchester and Newcastle, rents for new lets have risen by 26% over the same period.
Experts expect rent increases to continue. Estate agent Hamptons predicts that rents will rise by 18% between the end of 2022 and 2027. It estimates that this will cost the average tenant in Great Britain an extra £2,650 each year.
- Find out more: questions to ask when renting a home
What to do if you can’t pay your rent
If you’re struggling to pay your rent or have already missed a payment, it’s essential you contact your landlord as soon as possible.
Doing this will increase the chances of finding a solution that will allow you to remain in the property.
If you are a tenant in England or Wales, you may qualify for the Debt Respite Scheme, also known as Breathing Space. This provides you with a 60-day period in which your landlord won’t be able to take most enforcement action.
For more information on your options, see our guide on what to do if you can't pay your rent
This article has been updated since it was first published. Its last update was to include details about the Act becoming law.
