Following months of speculation and market uncertainty, the Renters’ Rights Act received Royal Asset yesterday (27th October).
The bill, which was introduced to Parliament on 11th September 2024, aims to give greater rights and protections to people renting their homes.
The key changes- including the abolition of Section 21 ‘no fault evictions’, introducing the Decent Homes Standard to the private rental sector, banning rental bidding wars and preventing unfair rent increases- have now become law.
The Renters’ Rights Act will also ban landlords and agents from refusing tenants because they have children or receive benefits, as well as strengthening local authority enforcement and bringing Awaab’s Law into the PRS, requiring landlords to fix damp and mould promptly.
A new Private Rented Sector Ombudsman will also aim to resolve tenants’ complaints.
In the coming weeks, ministers will outline how the reforms will be rolled out.
Housing Secretary Steve Reed commented: “We are finally ending the injustice overseen by previous governments that has left millions living in fear of losing their homes.
“For decades, the scales have been tipped against tenants. Now, we’re levelling the playing field between renters and landlords.”
Ben Twomey, chief executive at Generation Rent, said: “This new law is a vital step towards re-balancing power between renters and landlords and should be celebrated.
“For decades, Section 21 evictions forced renters to live in fear of being turfed out of our homes, preventing us from raising valid concerns with our landlords. At last, this outdated and unfair law is being sent packing.”
Ben Beadle, chief executive at the National Residential Landlords Association (NRLA), added: “This is the most significant shake-up of the rental market in almost 40 years, and it is imperative that the new systems work for both tenants and responsible landlords.”
Scott Clay, director at Together commented that while the bill is “a long-awaited milestone for tenants’’, it could cause issues for some landlords:
“The removal of Section 21 or ‘no fault’ evictions could now trigger a swathe of unjust cases being overlooked or ignored, causing costly and time draining situations for legitimate landlords.
“Without a clear roadmap on how the reforms will be rolled out — which has dubiously been promised in the ‘coming weeks’ — the potential impact to housing activity is in limbo until we know more. What we must avoid is more houses being left empty for months on end, worsening rather than improving our housing crisis.”
Marc von Grundherr, director at Benham and Reeves, commented: “While it’s positive that we now have clarity, the path to full implementation will not be a straightforward one.
“Many landlords will be wary of further administrative burden and reduced flexibility, but at least they now know where they stand and can begin to plan accordingly. Once the dust settles and the finer details are clear, we expect the sector to stabilise and confidence to return.”
Graham Hayward, managing director at guarantor service Housing Hand, said: “The Renters’ Rights Act is good not just for tenants but for the private rented sector as a whole. Assent gives certainty around how HMO and BTR tenancies will operate.
“The challenge now is the implementation plan and sequence — along with the detail of how purpose-built student accommodation will be exempt, and how providers of it will reposition in this new market.
“It's now time for the private rented sector to pull together and ensure that we support all those who are part of the future of the sector — tenants and accommodation providers alike.”
