Renters Rights Bill – what does it mean for registered providers?

The Labour government recently published, and is progressing through the House of Commons, the Renters’ Rights Bill (“the Bill”). The Bill largely follows from the Renters (Reform) Bill introduced by the Conservative government which did not become law prior to the 2024 General Election.

The Bill intends to “make provision changing the law about rented homes, including provision abolishing fixed term assured tenancies and assured shorthold tenancies; imposing obligations on landlords and others in relation to rented homes and temporary and supported accommodation; and for connected purposes”.

The Bill was introduced by Deputy Prime Minster Angela Rayner who said “…there can be no more dither and delay. We must overhaul renting and rebalance the relationship between tenant and landlord. This bill will do just that and tenants can be reassured this government will protect them…”.

The Bill is currently at first reading stage but given the Deputy Prime Minister’s comments, and the recency of the General Election, it seems highly likely the Bill will become law in the coming months.
This update highlights the key provisions of the Bill and what it means for registered providers of social housing:

An end to assured shorthold tenancies and Section 21 Notices

The Bill, much like the Renters Reform Bill, abolishes the assured shorthold tenancy regime. All assured shorthold tenancies will become periodic assured tenancies. The effect will be the end Section 21 and what are commonly described in relation to the private sector as “no fault evictions”. For social landlords, this will end the use of starter tenancies and the ability to use section 21 to end a tenancy. A key difference between the Bill and the Renters (Reform) Bill is the lack of a transition period, meaning when the Secretary of State specifies the relevant date all tenancies will convert.

Grounds for possession

The Bill introduces a number of new grounds for possession pursuant to the Housing Act 1988. Many will be of relevance to the private sector, (including where the landlord wishes to occupy the property as their only or principal home or sell the property). Some will be of use to registered providers, including a new ground 5F where the property is provided as supported accommodation and that support has ceased, is no longer required, does not meet the tenant’s needs or the tenant is not engaging with the support, (Section 17 of Schedule 1 to the Bill).

The Bill also amends ground 8, (the mandatory ground for rent arrears), to provide that 13 weeks/3 months arrears is required to have accrued at the date of service of the notice and at the hearing instead of the current 8 weeks/2 months arrears. The minimum notice period for ground 8 will be extended to 4 weeks.

The minimum notice period for ground 7A, (the mandatory ground for serious anti-social behaviour), will be reduced to 14 days. Registered providers will still need to ensure that the pre-action protocol is complied with together with any internal policies and review procedures where a mandatory ground is being used.
The proposal in the Renters (Reform) Bill to amend ground 14 has been shelved.

Section 13 rent increases

The Bill provides that increases to the rent for market rent properties during the course of a tenancy can only be annual, and only via the procedure in S13 Housing Act 1988, to no more than the market rate and with a notice period of at least two months. This, however, will not apply to ‘relevant low cost tenancies’.

Pets

The Bill sets out that it is an implied term of a tenancy that a tenant may keep a pet at the property, subject to obtaining the landlord’s consent which is not to be unreasonably refused. A landlord may require the tenant to obtain pet insurance and a failure to do so would amount to a breach of tenancy.

Conclusion

The Bill proposes a number of changes which may impact on registered providers of social housing, and also the private rented sector.

As the Bill is currently progressing through parliament it is unclear what, if any, amendments will be made to the wording before the Bill becomes law. It is clear, however, that whatever form the Bill finally takes before it becomes law, is likely to have a seismic effect on housing law.