Update on Labour’s Renters Rights Bill

Posted by Hannah Leigh

Labour has provided further details on its Renters' Rights Bill, introduced to Parliament on September 11th. The bill builds on many proposals originally put forward by the previous Conservative government’s Renters (Reform) Bill, including the abolition of Section 21 "no-fault" evictions, the creation of a Private Rented Sector (PRS) Ombudsman, a PRS database, and the application of the Decent Homes Standard to private rentals. However, Labour’s approach introduces some significant changes:

No Reform to the Eviction Process Before Section 21 is Banned

Unlike the Conservative plan to reform the court system before abolishing Section 21, Labour will push forward with the ban without addressing the efficiency of the eviction process. This means that while Section 21 is scrapped, there will be no immediate improvements to the Section 8 process.

No Minimum Tenancy Length

Tenants will have more flexibility under Labour’s bill. They can serve notice after the first day of their tenancy, providing just two months' notice. This differs from the Conservative proposal, which would have required tenants to wait six months before giving notice.

Ban on Rent Bidding and Transparency in Advertised Rent

Labour seeks to eliminate the practice of 'rental bidding' or 'best and final' offers by banning landlords from accepting offers above the advertised rent. Additionally, landlords will be required to clearly state the rent when listing properties.

Extending Awaab’s Law to the Private Sector

Named after Awaab Ishak, whose tragic death highlighted unsafe living conditions, Awaab’s Law requires landlords to address hazards promptly. Labour will extend these protections to the private rented sector, placing greater responsibility on landlords to maintain safe homes.

Changes to Section 13 Rent Increases

Labour’s bill introduces new rules for rent increases. If tenants challenge a rent increase via the First-tier Tribunal, the increase will not be backdated, which will undoubtedly lead to more appeals. The minimum notice period for rent increases will also double, from one month to two.

Longer Notice Periods for Section 8 Evictions

Labour’s bill extends notice periods for Section 8 evictions. For example, the mandatory Ground 1A eviction for property sales will now require four months’ notice instead of two. Additionally, the eviction cannot take effect until the tenant has been in the property for at least one year (up from six months).

Student Accommodation

The mandatory Ground 4A for student accommodation remains but applies only to Houses in Multiple Occupation (HMOs) i.e. 2 bed student properties will be exempt. The notice period will also increase to four months.

What to Expect

Labour is moving quickly to enact these changes, with an expected implementation date by summer 2025. From that point, all existing and new tenancies will automatically convert to the new system, with current fixed-term tenancies transitioning to periodic tenancies.

We will keep you updated as the Bill makes its way through parliament.

For more information on the key differences, read Suzanne Smith’s excellent comparison here.