October News Hour: The Renters’ Rights Bill
05 September 2024
Select a topic from the drop-down bar to find answers to many of the questions you have about the Bill.
Awaab’s Law is part of the Social Housing (Regulation) Act 2023. It was introduced to improve the quality of social housing in England and the Renters’ Rights Bill will extend similar provisions to the private rented sector. Under Awaab’s Law:
The Decent Homes Standard has been adopted from Social Housing law and encompasses several key requirements:
Landlords will need to serve a Section 8 notice using one of the mandatory or discretionary grounds for possession.
Yes, a Section 21 notice can be served anytime before the Bill’s implementation date. Any section 21 notice served before the law changes will stand and can proceed through the courts if the tenant fails to vacate.
See the government’s Guide to the Renters’ Rights Bill here for a full list of the grounds for possession including the minimum notice period needed for each. Please note these could be amended before the Bill comes into force.
Each ground under Section 8 will have a different notice period, either no notice, 2 weeks, 2 months or 4 months.
We are expecting guidance for tenants and landlords about the Renters’ Rights Bill to be published by the government.
No, the process for obtaining possession via Section 8 notices will remain the same.
Lettings agents will require training to form a much better understanding of how to navigate the amended/new grounds under Section 8. Lettings agents must also ensure that their Terms and Conditions of Business reflect legislative change.
For grounds 1, 1A and 1B, a Section 8 notice can only be served after the first 12 months of a new tenancy or after 12 months into a current tenancy. For example, if a current AST has been running for 9 months when the Bill comes into force, the landlord must wait a further 3 months before serving a Section 8 notice.
A Section 8 notice can be served at any time where a landlord has evidence to rely upon any other relevant ground. It’s important to note that ground 8 has been amended and therefore the landlord needs to be certain that this ground can be relied upon.
A Section 8 notice under ground 1A and/or 1B can only be served after the first 12 months of a tenancy and cannot be served earlier. A 4-month notice period will also be required using grounds 1A or 1B.
The landlord will be required to include evidence to support their reason for serving a Section 8 notice using any given ground. Therefore the history of a tenancy is very important and accurate notes must be kept throughout the tenancy.
The landlord can rely on the inventory, check-in report and property visit reports.
If the tenant is in at least 3 months’ rent arrears (or 13 weeks if the rent is paid weekly or fortnightly), the landlord can issue a Section 8 notice using mandatory ground 8. A mandatory ground 8 requires the court to award possession. It’s important to note there’s a condition with this ground that the tenant must be within the permittable amount of rent arrears both on the date the notice is served and at the time of the possession hearing.
Grounds 10 and 11 are discretionary grounds that relate to the tenant persistently paying rent late and when rent is lawfully due. The landlord will need to evidence this with statements of account that proves the tenant continuously pays rent late. It’s important to note these discretionary grounds are reliant on the courts making a decision as to whether possession may be granted.
If a tenant doesn’t leave the property by the end of the Section 21 or Section 8 notice period, the landlord will need to go to court to seek a possession order. Once the landlord has the possession order, the landlord will need to apply for a Warrant of Possession.
The landlord will rely on the grounds available in Section 8. See the Student Lets section for more information.
When the law comes into force, landlords will be prohibited from re-letting or re-marketing a property to let within the first 12 months following the service of a Section 8 notice using ground 1A or 1B, which is known as the ‘restricted period’. This must be adhered to in any circumstance.
Landlords who don’t comply with the requirements of the restricted period can be fined up to £7,000 for an initial offence. For subsequent offences, landlords could be fined up to £40,000 or face criminal prosecution.
The minimum notice period for grounds 1A and 1B is 4 months, so a tenant can stay longer if permitted to do so by the landlord. The validity period of a Section 8 notice is currently 12 months and we’re waiting for confirmation from the government whether this time period will remain the same.
The landlord should be advised to check their insurance to see whether they are covered for rent and legal protection. If they do not have insurance in place, they should be strongly advised to employ a legal firm. Lettings agents do not have the right to audience for possession claims.
Ground 6 for ‘Redevelopment’ permits the landlord to evict the tenant if the landlord needs to demolish or substantially redevelop the property which cannot be done with the tenant in situ. Various time limits and/or notice periods exist for this ground depending on the circumstances. The landlord should not use this ground to circumnavigate the law.
The government is yet to confirm the date.
Yes, the new legislation will apply to HMOs.
No, the Bill will not apply to non-residential / commercial tenancies.
No, the entire Bill will apply to current AST agreements, but some parts of the Bill will also apply to Non-Housing Act tenancies.
No, if the rent is over £100,000 per annum, an Assured Tenancy (AT) or Assured Shorthold Tenancy (AST) cannot be created. A High Rent Agreement or Premium Lease Agreement would be used, also known as a Common Law Agreement. Therefore the Bill will not apply.
Under the Bill, a tenant must provide 2 months’ notice, ending on the last day of a rent period. For example, if the tenancy started on 14th January and the tenant gave notice on 25th April, the tenancy would end on 13th July, not 25th June.
The Housing Minister, Matthew Pennycook, has stated the new legislation will not be delayed to resolve any issues within the court system.
Over half of all evictions currently go through the accelerated possession procedure under Section 21, but going forward, Section 21 notices will be abolished and landlords/agents will need to serve a Section 8 notice, which in many cases, could require a court hearing.
No, it’s unlikely at this stage that a minimum tenancy term will be introduced.
Under the new Bill, tenants are required to provide 2 months’ notice, ending on the last day of a rental period, which means a tenant needs to stay in a new tenancy for a minimum of 3 months if they were to give notice in the first 27 days of a new tenancy.
No, the government does not intend to create a “tenant database”. Moving forward under the Bill it will be increasingly important for agents and landlords to carry out reliable tenant referencing before granting a tenancy, and for landlords to have sufficient insurance cover in place.
Yes, this is possible using a Common Law Agreement. However, the tenant’s company must be registered on Companies House and properly vetted.
It’s important to note that Licence Agreements are used when the landlord or a relative of the landlord is resident in the property being let. However, some parts of the Bill may apply to residential licences.
Yes, sub-letting is still permissible under the Bill with the landlord’s consent. If the landlord gives consent for the tenant to sub-let, the rent will be paid by the sub-lessee to the tenant.
Holiday lets will no longer be affected by the Bill after ground 3 for out of season holiday lets was removed from Section 8.
A holiday let license agreement.
Local authorities will enforce the new law, and both landlords and agents could face significant penalties or consequences if proven guilty of an offence.
The Bill will require all residential landlords to join the new PRS Landlord Ombudsman redress scheme and adhere to its code of practice.
Non-compliance with the law could lead to:
A Banning Order can prevent individuals from renting out residential accommodation, holding a HMO or selective license or engaging in letting agency or property management work.
RROs empower tenants and local authorities to reclaim rent from landlords who have committed specific offences. The Bill expands the scope of RROs in the following ways:
Agents will need to update their Terms and Conditions of Business.
It’s expected the Ministry of Housing will update the Section 8 notice, the wording for each ground of Section 8 and the Section 13(2) notice.
It could be the case that these documents will be made available on the .gov.uk website on the day, or shortly before, the legislation comes into force.
Yes, agents will need to clearly state the proposed rent in all property ads to help stay compliant with the new rules surrounding rental bidding.
Agents will also need to clearly state the landlord details in their property ads in accordance with the new Private Rented Sector (PRS) database.
All existing Assured Shorthold Tenancy (AST) agreements will need to become periodic Assured Tenancy (AT) agreements on the day the law comes into force. It’s likely the landlord will be required to advise existing tenants in writing that their tenancy will be converted to an AT.
No, all existing ASTs will become ATs on the date the new law comes into force.
Yes, if the rent has already been increased within the 12 months prior to the AST/AT change date, the landlord will have to wait 12 months from that date before increasing the rent again.
ATs will not be able to include any reference to Section 21, any notice periods applicable to Section 21s and any break clauses.
ATs will need to reference the Renters’ Rights Act; the new Section 8 grounds and relevant notice periods; tenant service of notice; references to pet consent and the requirement for insurance (where applicable).
Yes, with mutual agreement in writing from both the tenant and landlord.
No, because the new legislation will only exist on the day it comes into force.
Clarification is needed by the government here. However, it could be the case that a new How to Rent Guide (England only) may need to be served alongside the written statement that informs tenants their tenancy has been converted to an AT.
No, there are currently no provisions in the Bill for properties that are only available for a limited period of time, except student lets.
Annually would be good practice.
All landlords will be required to provide tenants with a written tenancy agreement. This will be mandatory and significant financial penalties or other consequences exist for non-compliance with the Bill. See the Local Government Enforcement section for more information.
There will be no renewal date as ATs do not have an end date, therefore renewals will no longer exist.
The Bill will not impact property inspections. In fact, due to the introduction of the Decent Homes Standard, regularly property inspections will become increasingly important. You must give the tenant a minimum 24hrs notice in writing to carry out a property inspection.
No, the Private Rented Sector (PRS) database will contain detailed records of landlords and their respective rental properties.
All individuals, professionals and businesses that carry out estate, lettings and property management services already have a legal responsibility to join one of two Redress Schemes.
The Bill introduces the creation of a PRS Ombudsman for landlords. Membership will be mandatory and failure to comply will result in penalties for non-compliance.
The government has not yet published the fees.
Selective Licensing and registering on the PRS database are not linked. The government will not abolish Selective Licensing and replace it with PRS database.
Rooms can be let on a licence providing the landlord meets the necessary criteria.
Further clarification is needed during the parliamentary process, but there is nothing in the current Bill that categorically prohibits rent in advance. According to Clause 9, ‘Repayment of rent paid in advance’ within the Bill’s explanatory notes, it does not restrict landlords from requesting rent in advance at this time.
However, Housing Minister Matthew Pennycook has acknowledged the ambiguity and expressed the government’s intent to clarify the matter. He stated that the government is considering measures to ensure that demands for substantial rent in advance are prohibited, recognising that such practices place considerable financial strain on tenants and can exclude certain groups from renting altogether.
Yes, the legislation will not prohibit landlords from requesting guarantors.
No, the Bill makes it unlawful for landlords and agents to engage in discriminatory conduct against tenants with children or those who receive benefits.
There is nothing in the current Bill that prevents tenants from paying rent in advance on a quarterly basis. However, please see answer to Q1 above.
At this time, there is nothing in the current Bill that makes reference to whether rent in advance can be accepted and if so, where the monies should be held.
This is dependent on whether the Housing Minister permits rent in advance to be received under the Bill.
Under the Bill, a landlord will only be able to increase the rent once a year (or once every 52 weeks).
No, any clauses that enable or set additional rent increases will not be permitted when the Bill comes into force.
If any rent review clauses are included in your future periodic Assured Tenancy (AT) agreements, the statute will override contract.
In the main, the Bill only applies to the current AST regime, so other written agreements might not be affected by the Bill.
The landlord or agent must issue a Section 13(2) notice.
To increase the rent, landlords will be required to give tenants 2 months notice from the date the Section 13(2) notice is served.
Yes, there should be nothing stopping a tenant from negotiating a rent increase.
Yes, tenants can challenge rent increases by applying to the First-tier Tribunal (Property Chamber).
If a tenant challenges the rent, the tenant must apply to the First-tier Tribunal before the date of the rent increase as stated in the Section 13(2) notice.
The market rent is effectively the rental value that the property could achieve if it was put on the market today.
The market rent can be negotiated and agreed between the tenant and the landlord/agent or it could be decided by the First-tier Tribunal (Property Chamber).
If the case is taken to tribunal, the hearing will look at local market rents for similar properties as well as information provided by the agent/landlord and the tenant.
The landlord/agent will be asked to justify the proposed rent increase. It’s advised that you use a comparable report like the Best Price Guide to evidence this.
Yes, the tribunal will consider location, amenities, property type, condition and any utilities, council tax and communication services included in the rent.
See section for Evictions.
The Bill aims to stop the invitation, encouragement or acceptance of a higher rent than is advertised.
Agents should use their local knowledge and a comparable tool such as the Rightmove Best Price Guide to ensure they’re advertising the property at the maximum rent that’s achievable in the local market.
See the Local Government Enforcement section.
No, this could be deemed an unlawful practice.
This is dependent on whether the Housing Minister permits rent in advance to be received under the Bill.
Yes, it could be deemed discriminatory if it can be proven that the landlord has discriminated against a potential tenant with children or in receipt of benefits. However, selecting the tenant with the best referencing checks is a perfectly valid commercial decision to make.
Landlords who employ the services of a letting agent can meet potential tenants. This would not be deemed discriminatory.
The government has not stated whether requesting a tenant in receipt of benefits to have a rent guarantor would be deemed a breach of the new legislation.
The landlord should refer to minimum room sizes provided by local authorities to determine if the property is suitable for a family without breaching overcrowding regulations.
See question and answers below regarding pets.
The landlord will need to determine whether the property is suitable for a group of people, that there is no overcrowding, and where necessary, complies with HMO regulations.
The landlord could refuse consent for a pet based on whether the property is deemed unsuitable for the type of pet being requested.
Yes, tenants can challenge the decision through the First-Tier Tribunal (Property Chamber). The landlord will need to give valid reasons for refusing consent at the hearing.
Yes, the Bill is clear that the tenant can be charged for the policy and the excess if a claim needs to be made on the insurance. The Tenant Fees Act 2019 will be amended to allow for this.
No, this will not be permitted.
If the landlord refuses consent based on medical reasons, they will have to provide evidence.
A mandatory ground for possession of properties occupied by students (4A) has been added to the Bill. This new ground can be used to recover possession of a HMO or shared house that’s let to full-time students between 1st June and 30th September, in order to re-let the property to full-time students(*). If the property is let on a joint tenancy, each tenant must be a full-time student(*) when the tenancy was entered into.
(*or the landlord reasonably believes will become full-time student/s)
There is no difference between a HMO and shared house for full time students. See answer above for more information.
Mandatory ground 4A has been added to the Bill. This new ground enables landlords and agents to serve a Section 8 notice on the grounds that a property, which is let to full-time students, is required for a new group of students in line with the academic year. Please note that the notice period for this ground is currently set at 4 months and there are strict conditions that must be met (see above).
The implementation date for the new Bill still needs to be confirmed but it is possible that it comes into force after next year’s students move into the property. Therefore it’s important to notify next year’s student tenants in writing that possession of the property might be recovered on ground 4A before their tenancy begins. See points 881, 882 and 883 of the Explanatory Notes for more details.
Yes, it’s fine to advertise a student let on the valid presumption that the property will be available again for upcoming academic year.
Due to the nature of PBSA lettings, they are normally run with license agreements and therefore excluded from the Bill. However, if a PBSA has been set-up with AST agreements, these will need to be converted to Assured Tenancy (AT) agreements. See the Tenancy Agreements section above for more details.
No, except the Housing Act 2004 will be updated to reflect the new Renters’ Rights Act.
The cap under the Tenant Fees Act 2019 will still apply, which is a refundable tenancy deposit capped at no more than 5 weeks’ rent where the total annual rent is less than £50,000 or 6 weeks’ rent where the total annual rent is £50,000 or above.
No, landlords must continue to protect their tenants’ deposits in a government-approved deposit protection scheme.
Yes, the legislation does not prohibit landlords from requesting guarantors.
Please note: the Bill can still be amended before it’s implemented and many details need to be confirmed by the government. These FAQs were last updated on 11th December 2024 and we’ll update them regularly in the New Year. This information is for guidance only and is not legal advice.
In each webinar we take a deep dive into key areas of the Bill, so you have all the information you need to discuss it with your landlords and tenants.
We’re committed to making the change as straightforward as possible for our partners. Below are some of the ways we’ll do just that.
And we'll look into ways we can support you with them