The Act will strengthen renters’ rights, banning no-fault evictions and limiting rent increases
Just over a year after it was first introduced to Parliament, one of the Labour government’s landmark pieces of legislation, the Renters’ Rights Bill, was given Royal Assent last night and is now law. This is huge news for the estimated 11 million private renters in the UK.
These reforms have been a long time coming, after Theresa May first pledged to end no-fault evictions in 2019, but the Tories failed to pass the Renters Reform Bill while they were in power. The legislation has passed, but Labour still needs to set out when it will be implemented.
Here are some of the most transformative measures in Labour’s Renters’ Rights Act.
1. No more no-fault evictions
Section 21 of the Housing Act 1988 allowed landlords to evict tenants without giving a reason, hence the name ‘no-fault’ eviction. No-fault evictions have been a key cause of homelessness and housing insecurity among private renters, often leaving renters afraid to report problems with their homes.
2. Longer notice periods for tenants facing eviction
The new law means that a landlord will not be able to sell or move into a property in the first 12 months after a tenancy begins. After this, they will need to give four months’ notice. The threshold for eviction for arrears will also increase from two months arrears to three months and the notice period will increase from two weeks to a month.
3. End to fixed-term tenancies
Under the new law, fixed-term tenancies will also be scrapped and replaced with assured periodic rental agreements. This means tenancies will run month to month, instead of tenants being locked into year-long or multi-year contracts. Tenants will be able to stay in their home until they decide to end the tenancy, when they will need to give just two months’ notice.
4. No more bidding wars
When listing a property for rent, landlords and agents will have to publish an asking rent for the property. It will be illegal for them to accept offers made above this rate. In addition, landlords will not be able to ask tenants to pay more than one month’s rent upfront.
5. Rent increases can be challenged
Landlords will not be able to increase rent more than once a year. Tenants will have the right to challenge rent rises at a tribunal if they believe the increase exceeds local market rates. Rent can still go up, but they must be ‘fair’ increases and in line with average rents in the area.
Tenants will be able to request to keep a pet in their property. Landlords will have to consider the request and will not be able to unreasonably refuse.
Olivia Barber is a reporter at Left Foot Forward
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