The draft law on the rights of tenants Law society

The The draft law on the rights of tenants was submitted to the Parliament on September 11, 2024. It is planned that the bill will become law in 2025.

The bill does not significantly differ from its predecessor Bill on Tenants (Reform)..

The Labor Government’s updated proposal aims to introduce several protections for tenants, including:

prohibition against no-fault eviction under section 21
canceling fixed-term leases and replacing them with periodic leases that tenants can terminate with two months’ notice
banning landlords and agents from discriminating against potential tenants on benefits or with children
end the bidding war by no longer asking, encouraging or accepting bids in excess of the specified price
a new Decent Housing Standard (DHS) for the private rented sector
application Law of Awab into the private rented sector, requiring landlords to remove hazards such as damp and mold within a specified period of time
a new landlord ombudsman in the private rented sector for landlords and tenants in England
a private rented sector database where all landlords must register themselves and their properties

Our view

We support proposals to end no-fault evictions, rather than the previous government’s plans to delay the ban pending further judicial reform.

However, without investment in housing and legal aid and courts, the bill will not achieve its goals.

The bill as it stands could lead to an increase in contested hearings in the short term, as landlords who previously used no-fault clauses would instead have to provide good cause for eviction.

We demand that the government outline:

how he is going to manage the increased demand for courts
what additional resources it will attract to work with the existing backlog

No-fault Section 21 evictions are a major cause of homelessness as local authorities struggle to find the resources to crack down on offending landlords under the Deregulation Act 2015.

However, we recognize that with the abolition of no-fault evictions, it is important that landlords expand the grounds for reclaiming their property through Section 8 eviction notices.

A Section 8 notice gives the tenant a specified period to fix the problems or vacate the property before the landlord can bring legal action to regain possession.

We support proposals to extend the grounds for tenure under Section 8, while supporting an extended protected period at the start of a tenancy to 12 months, during which landlords cannot evict tenants to move or sell the property.

The restrictions in the bill would also prevent a property from being re-let or re-sold within 12 months of being served with a possession notice on these grounds.

This will bring a much greater level of security to the rental market, which we welcome.

The introduction of the new Decent Housing Standard and Awaab Act for the private rented sectors will mean that landlords will be required to investigate and remedy reported health hazards (eg dampness and mould) within specified timeframes.

We hope that this, together with the new private rented sector database, will help identify and remove serially negligent landlords.

However, we believe that penalties against rogue landlords need to be strengthened.

The bill also prohibits accepting offers above the advertised rent.

Landlords can only raise the rent once a year, not exceeding the “market rate”. This is defined as the price that would have been achieved if the property had been recently advertised for rent.

If the tenant believes that this is above the market rate, they can appeal this to the first-tier tribunal.

Implementation of the provisions of the bill will require greater clarity and additional resources to be effective.

Local authorities must be provided with the resources necessary for the effective implementation of their powers.

Funding for recruitment and training is needed to strengthen the capacity of enforcement teams in councils and support the sharing of best practice between councils.

Find out more about our work on court reform

Next steps

The draft law on the rights of tenants is advancing in the parliament.

Check the progress of consideration of the draft law

What is changing

October 2024 – second reading and committee stage in the House of Commons
September 2024 – first reading in the House of Commons
July 2024 – Tenants’ Rights Bill approved in the King’s Speech