The most significant change in the English private rented sector in more than 30 years is stirring within the House of Commons. Here we will briefly cover the main points addressed by The Renter’s Rights Bill. It should be noted that this piece of legislation has been on the horizon for five years or more, and there is no absolute certainty over the specific details. We can at least speculate that the main components of the Bill are unlikely to change at this late stage.
One of the standout changes is the conversion of all Assured Shorthold Tenancies (ASTs), whether they are currently in their fixed term or not, will be converted into fully assured periodic tenancies. The Bill effectively means that fixed-term tenancies will be a thing of the past, as granting such a tenancy will be an offence. The Bill also means that a Section 21 notice (otherwise known as a no-fault eviction) is no longer a tool landlords can use to evict tenants from properties at the end of a fixed term. Landlords will need to rely on the new and amended grounds under section 8 of the Housing Act 1988. However, landlords can breathe a sigh of relief as the Bill retains many mandatory grounds for possession, including the right to possession where they want to sell or move into the property.
The Bill will also aim to stop the practice of rental bidding. Landlords and letting agents will be required to publish an asking rent for the property and will then be prohibited from inviting, encouraging or accepting a rent above this price. It will be possible to accept less than the asking price rent.
Residential conveyancers will be interested to note that the Bill will aim to end the ‘AST Trap’ for long leases. Where ground rent for long leases exceeds £1,000 in London and £250 outside of London, the lease is currently considered as an AST if the property is the leaseholder’s only or principal dwelling. This means that the freeholder will be able to serve a section 8 notice to obtain an order of possession over the property if the annual ground rent is more than three months in arrears. The Bill will bring an end to the AST trap by stating that tenancies of more than seven years cannot be Assured Tenancies.
The Bill will also introduce new anti-discrimination provisions that will aim to prevent landlords from introducing blanket bans on letting to tenants who receive benefits or because they have children. Any refusal must now be for a good reason, for example, letting property adjacent to a large building site that may present hazards to young children.
This Bill will also create a duty for local authorities to enforce housing standards in their areas. Local authorities already have considerable powers under the Housing Act 2004 however, these are usually not utilised by local authorities. This section of the Bill will aim to put pressure on local authorities to use these powers and report on their enforcement activity. The Bill also introduces a package of advanced investigatory powers for enforcers, as well as creating six new offences that will aim to deter landlords from non-compliance.
Finally, pet owners will be happy to hear that the new Bill makes it an implied term of every assured tenancy that a tenant may keep a pet with the landlord’s consent. That is, unless the landlord provides a reasonable explanation for pets being prohibited at the property.
For more information on letting your property, please contact Frank Smith & Co Solicitors on 01242 801 748 or www.franksmithandco.com
30.6.25