The Renters’ Rights Bill is set to be the most significant reform to the private rented sector in nearly three decades. The importance of the Bill cannot be understated: it will have wide-ranging ramifications for tenants and landlords from across all parts of the country. Although it’s still undergoing the ratification process, it is important to track the development of the Renters’ Rights Bill and draw out why the Bill is slated to shake up the property industry.
How Did it Start?
In 2019, almost six years ago, Prime Minister Theresa May announced the Renters’ Reform Bill as a major ‘step change’ since the Housing Act 1988. Explaining why scrapping Section 21 evictions was at the top of the Bill’s agenda, May argued that ‘we’re acting by preventing these unfair evictions. Landlords will still be able to end tenancies when they have legitimate reasons to do so, but they will no longer be able to unexpectedly evict families with only eight weeks’ notice.’
Although the May ministry failed to put these provisions into law, the Renters’ Reform Bill played a crucial role in magnifying rental laws within the political discourse. This policy agenda was then taken up by Labour, which repeatedly stressed the importance of reforming private sector laws during the 2019 general election.
A major manifesto campaign pledge was to ‘immediately abolish Section 21 “no fault” evictions, prevent private renters being exploited and discriminated against, empower them to challenge unreasonable rent increases, and take steps to decisively raise standards’.
Since taking office in July 2024, the Starmer ministry has put forward the Renters’ Rights Bill as the cornerstone of Labour’s private sector policy. Some of the provisions include abolishing Section 21 evictions, limiting rent increases, placing tougher restrictions on bidding wars, and making it harder to refuse tenants wanting to bring pets.
‘Most landlords act in a responsible way’, Deputy Prime Minister Angela Raynor assured, ‘but a small number of unscrupulous ones are tarnishing the reputation of the whole sector by making the most of the housing crisis and forcing tenants into bidding wars.’ This explanation undergirds the Labour Party’s commitment to bring the Renters’ Rights Bill into law, convinced it will create a more equitable playing field for both tenants and landlords.
What is Currently Happening?
Introduced to Parliament on 11 September 2024, the Renters’ Rights Bill is currently subject to ongoing readings and reviews, during which the Bill’s provisions are subject to scrutiny and proposed modifications. Proceeding the formal provisions of the Bill shown to the House of Commons is the summary that it proposes to ‘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.’
As present, the Bill has passed the first of three stages, starting with its clearance in the House of Commons on 15 January 2025. On the following day, the Bill was passed to the House of Lords, where ongoing readings and reviews are taking place. Just last week, the House of Lords committee stage was completed and now is set for its review stage, a stage allowing for the House to propose further amendments to the Bill.
This parliamentary process is crucial because it allows for a thorough and rigorous investigation of the Renters’ Rights Bill, ensuring that each provision is carefully considered before entering law. It is also important for highlighting potential shortcomings and providing the opportunity to propose amendments to the Bill.
For example, on the 16 May committee, Baroness Scott of Bybrook said: ‘Rather than boosting supply, it risks driving landlords out of the market, shrinking the number of available homes and pushing rents even higher. If we get this wrong, renters will pay the price. Balance is essential. At present, we believe this Bill does not strike that balance.’ ‘A phased approach’, Baroness Scott continued, ‘would allow landlords, tenants and letting agents time to understand and adopt to the new legal framework.’
Baroness Taylor of Stevenage countered: ‘Existing tenancies will convert to the new system, and any new tenancies signed on or after that date will be governed by the new rules. There will be no dither or delay, and the abolition of Section 21, fixed-term contracts, and other vital measures in the Bill will happen as quickly as possible.’
When to Expect the Bill?
As the above exchange indicates, the Bill is still under significant scrutiny and debate in Parliament. There was the general expectation that the Bill would come into law shortly after Easter, though delays in the House of Lords committee stage have pushed that projected date back to the summer, where it is expected that the Bill will pass Royal Assent.
Provided that the Bill will follow this projected track of approval, its emergence into law will be imminent. It is therefore worth considering the wide-reaching ramifications it will bring to the private rental market.
