Renters Rights Bill: Key Changes for Landlords
Housing Minister Matthew Pennycook has revealed the complete list of changes the Renters Rights Bill will unleash on private landlords and letting agents.
Pennycook, credited as the author of the BIll, has published a line-by-line guide explaining how the new laws will work.
The raft of new measures aimed at streamlining tenancy agreements favouring renters who gain more security and are empowered to challenge poor standards and unfair rent increases without worrying that they will be evicted.
Pennycook says: “The Renters’ Rights Bill delivers our manifesto commitment to transform the experience of private renting, including by ending Section 21 ‘no fault’ evictions.
“The bill will improve the current system for England's 11 million private renters and 2.3 million landlords. It will give renters much greater security and stability so they can stay in their homes for longer, build lives in their communities, and avoid the risk of homelessness.
“Reform of the sector is long overdue, and we will act where previous governments have failed.”
11 key changes
Here’s a list of the significant measures:
Section 21 eviction ban
Section 21 no-fault evictions are banned from the day the Bill becomes law.
Backdoor rent cap
Landlords can only raise rents once a year in line with market rents. An independent tribunal will rule if the rent is excessive.
Private Landlord Ombudsman
A new ombudsman will investigate unresolved tenant complaints against landlords. The ombudsman can order landlords to apologise, remedy complaints, and pay compensation. Every private landlord must pay a fee to join the redress scheme. Failing to join could mean a fine of up to £40,000.
Private landlord database
Landlords must register if they wish to evict a tenant under specific grounds for possession - another maximum £40,000 fine applies for failing to sign up to the database. The data will help councils with compliance.
Right to keep a pet
Landlords cannot unreasonably refuse to let a tenant keep a pet.
Introducing a decent home standard
Living standards will be benchmarked against a common standard to eradicate cold, unsafe and unhealthy rented homes.
Applying Awaab’s Law
Awaab was a two-year-old boy whose home was infested with damp and mould, which a coroner ruled contributed to his death. Awaab’s Law sets out timescales for repairing defects in a rented house.
Lifting bans on letting to tenants with children or who claim benefits
Private landlords must no longer discriminate towards certain tenants - especially those with children, who come from overseas, or claim benefits.
The end of bidding wars
Encouraging rival tenants to bid over the asking rent will be outlawed for landlords and letting agents.
Double up rent repayment orders
The current maximum penalty of refunding 12 months' rent will double to 24 months, while liability will extend from inferior to superior landlords.
Upgrading council compliance
Councils must report on enforcement activity and crack down on rogue landlords with higher fines and other penalties.
Read the complete government guide to the Renters Rights Bill.
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