Renters Rights Bill Update

The Renters’ Rights Bill has now completed its passage through the House of Commons, with Report Stage and Third Reading having been taken together on 14 January 2025. The House of Lords will begin consideration of the Bill on 4 February 2025.

Several amendments were made at Report Stage. These include:

(a) Amendments to the Housing Act 1988 and the Tenant Fees Act 2019 designed to limit the amount of rent in advance which can be demanded by a landlord. The limit will be equivalent to the rent due under the first rental period (i.e. a tenancy where the rent is paid monthly would mean that the rent in advance is capped at one month's rent).

(b) New clauses introduce further amendments to the Housing Act 1988, designed to release a rent guarantor from that guarantee if the person whose rent is being guaranteed has died.

(c) Clause 30 of the Bill originally provided that fixed term tenancies for more than seven years would not be assured tenancies. That was amended so that new fixed term tenancies for terms exceeding 21 years will not be assured tenancies. The effect of this amendment appears to be that a fixed term tenancy for a term of 21 years or less, granted after the commencement of the relevant provisions, will instead take effect as a periodic assured tenancy (see cl.1). Fixed term tenancies for terms of more than 21 years are likely to be long leases and regulated as such (see ss.76, 77, Commonhold and Leasehold Reform Act 2002). The amendments contain exceptions for “regulated home purchase plans” (e.g. Islamic finance models designed to comply with Sharia law restrictions).

(d) Various amendments are made to cl.4 and Sch.1, so that new Ground 6A (possession required in consequence of regulatory enforcement, e.g. to comply with an improvement notice under Housing Act 2004) will additionally apply to where a landlord requires possession in order to comply with specified provisions of planning law. The amendments provide that whenever the landlord obtains possession on this ground, the court will have power to order compensation to be paid to the tenant.

(e) An amendment was made to cl.12 (duty on landlord to give prescribed information to a tenant under an assured tenancy) to apply a 28-day grace period where a demoted tenancy (Housing Act 1996) becomes an assured tenancy.

(f) An amendment was made to cl.62 (landlord required to join redress scheme) to expand the powers of the redress scheme to specify information which a landlord must provide with an application for membership.

(g) An amendment was made to cl.98 (power for Secretary of State to set a “Decent Homes Standard” for HMOs) to allow the power also to be exercised in respect of properties occupied by a single household.

 

If you need assistance with tenant evictions then please contact Oliver Kew at o.kew@hewetts.co.uk - Solicitor in Reading.

Published on 22/01/2025

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