Renters’ Rights Bill 2024: Lesser-Known Changes

This article considers some of the lesser-mentioned parts of the bill.

The Renters' Rights Bill 2024 is still in the early days of the process and will likely change as it passes through the various steps. Furthermore, we may conclude a different meaning of a part of the bill in the future.

We have already written about the critical parts of the bill here.

Section 8 increase in length and rent

Section 4 of the Renters' Rights Bill 2024 proposes significantly increasing the time to seek possession against a tenant not paying rent.

A new section 8(4AA) subsection is proposed to be inserted into the Housing Act 1988, which details the length of the section 8 notice for each ground. For grounds 8, 10 and 11 (the usual rent arrears grounds), the notice is increased from 14 days to four weeks.

Furthermore, ground 8 (mandatory ground for serious rent arrears) is amended from two months arrears to three (or eight weeks to thirteen for weekly rents).

Therefore, for a landlord to begin proceedings for possession, they must first wait for three months arrears (to use mandatory ground 8), then serve a section 8 notice of at least four weeks (plus four days for delivery). Only after that can court proceedings be filed. The court rules provide that the first hearing will start up to eight weeks from when the papers are served, meaning the tenant could easily be six months in arrears on the day of the first hearing without the landlord having any other suitable option for possession!

How many trades must continue their work without being paid a wage for a quarter to half a year?

The length of notice is reduced to nill if the section 8 notice includes grounds 7A or 14 (anti-social behaviour).

Grounds 10 (some arrears) and 11 (persistently late paying) remain, but likewise, the length of notice is increased from 14 days to four weeks. Therefore, a landlord could issue a section 8 sooner than three months arrears, but the grounds are discretionary.

This is the most concerning aspect of the bill and something we will be looking to lobby against.

Tenancy deposit schemes

The Renters' Rights Bill 2024 introduces significant changes to the rules around tenancy deposits.

Late protection and possession proceedings

Under current law, landlords must protect a tenant’s deposit within 30 days of receiving it. Failure to do so prevents them from serving a Section 21 notice, with the only remedy being to return the deposit in full or with agreed deductions. However, the Renters' Rights Bill alters this. Landlords who miss the 30-day deadline can protect the deposit late and still serve a notice for possession, provided the deposit is protected, and the prescribed information is given to the tenant.

This change allows landlords to regain the ability to serve a Section 8 notice even if the deposit was protected late, as long as they comply with the protection rules before initiating possession proceedings.

Exceptions to the Rules

While the bill makes late protection possible, there are exceptions. Landlords can bypass deposit protection requirements in certain circumstances, such as:

• Returning the deposit: If the landlord returns the deposit in full or with agreed deductions, they can proceed with possession without protecting it.
• Specific grounds for possession: Grounds 7A (serious anti-social behaviour) and 14 (nuisance or criminal behaviour) are exempt from the deposit protection rules, meaning landlords can proceed with possession based on these grounds regardless of whether the deposit is protected.

Penalties and best practices

Despite the more lenient rules on possession, landlords should note that they may still face financial penalties if the deposit is not protected within 30 days. Tenants can apply for compensation, and courts may order landlords to pay between one and three times the value of the deposit for late protection. To avoid complications and potential penalties, landlords should continue to protect the deposit and provide the required prescribed information within the 30-day window.

Written statements

Section 12 of the Renters' Rights Bill 2024 adds a new Section 16D to the Housing Act 1988, requiring landlords to provide tenants of most assured tenancies with a written statement of the tenancy terms and specified information. This duty applies to all new assured tenancies except those resulting from an implied surrender and regrant due to variations between the same landlord and tenant.

The statement must include terms specified in regulations by the Secretary of State and any additional required information about the tenancy, property, tenant, landlord, and their rights. It must be given before the tenancy begins or within 28 days in certain exceptional cases like succession tenancies or assured agricultural occupancies.

Landlords may also include in the statement any grounds for possession they might rely on in the future.

If landlords use agents or third parties contracted to ensure compliance, those parties share the responsibility for providing the statement.

Pets

The Renters’ Rights Bill 2024 establishes a tenant's right to request permission to keep a pet in rental properties, introducing a new implied term in assured tenancies. Under this provision, tenants can ask their landlords for consent to keep a pet, which cannot be unreasonably refused. The landlord must respond to the request in writing within 28 days, either granting or refusing consent. If additional information about the pet is required, the landlord can extend the response period until seven days after receiving the necessary details. When the landlord needs consent from a superior landlord, the decision can be delayed until seven days after that consent is obtained.

If consent is granted, the landlord can impose certain conditions related to pet insurance. The tenant may either be required to obtain insurance covering pet damage or pay the landlord’s reasonable costs for such coverage. These costs could include the insurance premium for pet damage or an additional amount attributable to the pet damage portion of a broader insurance policy.

Suppose the insurance premium covers a fixed period. In that case, the tenant may also be responsible for costs when the pet is no longer at the property if the tenant fails to notify the landlord of the pet's absence.

In addition, the bill amends the Tenant Fees Act 2019 to allow landlords to require tenants to make payments related to pet insurance. Specifically, payments for the tenant’s own pet insurance or for covering the landlord’s insurance costs are classified as permitted payments under the Act. This ensures that landlords can lawfully recover costs associated with granting permission for pets without violating the tenant fees ban.

The bill clarifies that a “pet” refers to an animal kept for personal interest, companionship, or ornamental purposes. "Pet damage" includes any harm caused by the pet to the rental property, common areas, or the landlord’s belongings.

Rent in advance

The Renters' Rights Bill 2024 introduces a provision concerning the repayment of rent paid in advance under assured tenancies. It establishes a tenant’s right to reclaim any portion of rent paid in advance that corresponds to days following the termination of the tenancy.

This provision does not interfere with or override any other financial entitlements or payments that may be due upon the conclusion of the tenancy.

Council tax

Currently, suppose a tenant abandons or leaves without giving valid notice. In that case, they only remain liable for council tax if they have a 'material interest', which means a leasehold interest of more than six months. As fixed terms are to be banned, tenants would not have a material interest under the current rules.

The Renters' Rights Bill amends this by adding to the definition of a material interest "... or a tenancy that is or was previously an assured tenancy within the meaning of the Housing Act 1988". Thus, whilst the tenancy continues, tenants should remain liable for council tax.

Student lettings

Continuing on the theme of fixed terms being banned, unlike the previous government Renters' Reform Bill, which allowed a student letting to have a fixed term, no such concession exists in this new bill. We will look to lobby on this point, too.

No ground 16

The current ground 16 is renumbered to ground 5C, and later in the bill, a new ground 18 is added. This means the grounds don't run in sequence and instead go ... 15, 17 and 18. This abnormality is likely to be fixed in future versions of the bill.