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17.07.2024

King's Speech: From Renters Reform to Renters Rights – Labour’s Plans for the Reform of the Rental Sector

''In today’s King's Speech, Labour put forward the new Renters Rights Bill, which will carry through a number of provisions from the Renters Reform Bill, which did not make it through the Houses of Parliament under the last Government. Provisions of the Renters Reform Bill which are going to be carried through, in some form, include the following:

  • The abolition of Section 21 ‘no-fault’ evictions. As with the Renters Reform Bill, Section 21 will be abolished, and the new Government is keen to pass legislation to give effect to this as soon as possible. The Government does however still intend to include in the Bill new “clear and expanded” grounds for possession, presumably under Section 8.
     
  • The introduction of tenants’ rights to challenge rent increases. The bill will introduce provisions allowing tenants to challenge rent increases. It is unclear whether this will simply comprise amendments to the Section 13 procedure (as was the position in the Renters Reform Bill), or whether there will be additional protections for tenants.
     
  • The establishment of a private rented sector database and Ombudsman service.

The Government also intends to introduce new measures, including:

  • Provisions to end Rent Bidding Wars - One new provision from the Bill will be measures to end rent “bidding wars”. Although the exact mechanisms are yet to be defined, Matthew Pennycook, the new Housing Minister, proposed an amendment to the Renters Reform Bill, prohibiting landlords from soliciting or encouraging bids exceeding the advertised rental price. 
     
  • The extension of Awaab’s Law to private tenancies. Again, Matthew Pennycook proposed an amendment to the Renters Reform Bill, which would impose timescales on private landlords to make homes safe where they contain certain serious hazards, including damp and mould.

A lot will remain unclear until the Bill is published, but the King’s Speech announcement gives a general guide as to what to expect from Labour’s reforms of the rental sector.