The Renters’ Rights Bill has just passed its latest stage in the House of Commons. Here, we’ll look at what happened and at what it could mean for landlords, tenants and anyone considering selling their rental property investments.
Renters’ Rights – what’s happened so far
The Labour Government unveiled the Renters’ Rights Bill in September 2024.
Key proposals for this new legislation for England include making all tenancies periodic tenancies and the abolition of Section 21 ‘no fault’ evictions. Also planned are new rules on rent rises, having pets and property standards, a national database of rental properties and an ombudsman system for resolving complaints.
Since then, the Bill has been through all its stages in the House of Commons. It has been debated, and various amendments have been proposed.
On January 14, at what is called the report stage, MPs debated the Bill for a final time. They voted on whether or not to accept the amendments.
In summary, most of the original proposals in the Bill were agreed upon and are likely to become law.
Important takeaways
It’s now clear that Section 21 evictions will be abolished when the Bill becomes law. Tenants will have more security and be able to stay in their homes as long as they abide by their tenancy. Otherwise, landlords can only take their property back if they wish to sell it or move in themselves.
A key takeaway is that an amendment on advance payments was passed. This wasn’t part of the original Bill. It means landlords and agents will only be able to ask for one month’s rent in advance. (A security deposit will still be permitted.)
When will Renters’ Rights become law?
The Bill will now go to the House of Lords, where it will be debated and voted on. At the end of that process, it can then move on to get Royal Assent.
A firm date for Renters’ Rights to become law is still unknown. However, given that the bill has moved through the legal process very quickly, it could happen within the next few months.
What landlords need to do now
It’s important to note that fine details of how the new law will work, such as the new database and ombudsman system, have still not been worked out. However, landlords should expect some major changes to landlord-tenant law during 2025.
Please get in touch with us if you are a landlord and need advice about letting or managing your property.
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