Renters' Reform Bill 2024: Key Changes and Implications for Landlords

Under the existing framework of the Housing Act 1988, tenants have limited tenure security, but equally the status quo has always been viewed as fairl to both landlords and tenants when each party fulfils its contractual obligations.

The relationship can break down when one party fails to observe and perform the contractual obligations in the tenancy agreement. When the relationship flounders, at least the existing rules allow both landlord and tenant to end the tenancy. The Housing Act 1988 is now at the centre of this change.

Currently, under the Housing Act 1988, the landlord serves a Section 21 Notice, usually giving a minimum of two months' notice to quit the tenants. A tenant usually needs to give one month’s notice.

Rent payable is another factor, as scarcity value often drives rent up significantly, which is a serious problem in some areas where demand for vacant property far exceeds availability.

The government has outlined several transformative measures in the Renters’ Reform Bill.  While some support the new Bill, others see the proposed changes as heavily favouring the tenants.

Move to a simpler tenancy structure where all assured tenancies are periodic. This will provide higher security for tenants, empowering them to challenge poor practices or unfair rent increases without fear of eviction.

Give tenants higher security while ensuring landlords can recover their properties when reasonable. The bill introduces new safeguards for tenants, giving them more time to find a home if landlords evict to move in or sell and ensuring unscrupulous landlords cannot misuse grounds.

Enable tenants to appeal excessive above-market rents designed to force them out.  As of now, landlords will still be able to increase rents to mark the price for their properties, and an independent tribunal will make a judgement on this if needed. 

Provide quick, fair, impartial and binding resolution for tenants' complaints about their landlord.  This will bring tenant-landlord complaint resolution on par with established redress practices for tenants in social housing and consumers of property agent services.  

Require landlords to register on a centralised database, ensuring compliance with legal obligations and offering tenants access to reliable information about prospective landlords when entering into a tenancy agreement. 

Strengthen tenants' rights to request pets, which landlords cannot unreasonably refuse, supported by pet insurance to cover potential property damage.  

Give renters safer, better-value homes and remove the blight of poor-quality homes in local communities. 

Set clear legal expectations about the timeframes within which landlords in the private rented sector must take action to make homes safe where they contain serious hazards. 

Make it illegal for landlords and agents to discriminate against prospective tenants receiving benefits or those with children.  This will ensure everyone is treated fairly when looking for a place to live. 

Prohibit landlords and agents from asking for or accepting offers above the advertised rent. Landlords and agents will be required to publish an asking rent for their properties, and it will be illegal to accept offers made above this rate. 

Strengthen local authority enforcement by expanding civil penalties, introducing a package of investigatory powers and a new requirement for local authorities to report on enforcement activity.  

Extend penalties to superior landlords and double the maximum penalty.  Ensure repeat offenders to repay the maximum amount. 

Landlords should also consider the government's recent Budget announcement, which increased Stamp Duty Land Tax (SDLT) rates for additional property purchases.  This change further impacts the viability of buy-to-let investments. 

The full legislative impact of the Renters' Reform Bill, much like the Leasehold & Freehold Reform Act 2024, remains to be seen. 

A would-be landlord should also consider the Government's recent Budget announcement, which would increase the STLD rates immediately for those buying additional properties. 

For more details on the Renters' Reform Bill, please visit the Government's webpage.  This is a watching brief, and much like the Leasehold & Freehold Act 2024, we will monitor how much of this becomes legislation.