Newsflash - Renters' Rights Bill 2024
Yesterday, 11 September 2024, the Government introduced the Renters’ Rights Bill (the ‘RRB’). Although this Bill is new it is very similar to the Renters (Reform) Bill introduced by the Conservative Government in 2023 which didn’t make it to the statute books.
The RRB, if passed in its current form (and it has some way to go first through Parliament), introduces a number of amendments to the Housing Act 1988.
End of Assured Shorthold Tenancies
The RRB abolishes assured shorthold tenancies (ASTs). All ASTs will become periodic assured tenancies. This will mean the end of starter tenancies where the tenancy is an AST for the initial period and it then converts to an assured tenancy.
The current proposal is that this is immediate with no transition period – although this could change.
End of Fixed Terms
The RRB abolishes fixed term assured tenancies. This means that all fixed term tenancies will become periodic tenancies based upon the rental period. Furthermore, new periodic tenancies must have rental periods which are either:
- 28 days or less; or
- Monthly.
Scrapping of Section 21 ‘no fault’ notices and evictions
By abolishing assured shorthold tenancies, the RRB also abolishes section 21. So, no more Section 21 ‘no fault’ notices can be issued by registered providers or private landlords. Everyone will need to use ‘grounds’ for possession and prove those grounds to a Judge. These grounds will be existing ones in Schedule 2 of the Housing Act 1988 or new/amended ones – see below.
Grounds of Possession
The RRB introduces new mandatory grounds of possession:
- Ground 2ZA – a superior landlord is seeking possession from the housing association.
- Ground 5C – tenancy granted due to employment and this has come to an end (makes the current Ground 16 a mandatory ground).
- Ground 5B – the property is required for someone who needs it for employment requirements.
- Ground 5G – property let to local authority to help with homelessness duty and it is no longer required for that purpose.
- Ground 6A – possession is required because of enforcement action being taken by local authority.
A new discretionary ground (Ground 18) is also proposed. This will enable landlords to seek possession of supported accommodation where the tenant is unreasonably refusing to engage with the support offered.
- The RRB will also amend Ground 8 (the mandatory ground for high level rent arears). The minimum level of arrears to trigger Ground 8 will be:13 weeks in the event of a weekly or fortnightly periodic tenancy; or
- 3 months in the event of a monthly periodic tenancy.
As quarterly and 3-monthly periodic tenancies will no longer be permitted, the provisions in respects of these will be repealed.
The RRB will also require that, where a tenant is entitled to the housing element of Universal Credit but has not yet received it, the amount they are due to receive has to be ignored.
Proposed Changes to Possession Notice Periods
Where a possession notice cites Ground 7A (the mandatory anti-social behaviour ground) of schedule 2 of the Housing Act 1988 the RRB will allow for proceedings to be commenced immediately following service of the notice. This brings Ground 7A in line with Ground 14 (the discretionary anti-social behaviour ground).
The table below sets out the proposed notice periods for the grounds other than Grounds 7A and 14:
GROUND SPECIFIED IN NOTICE:
1, 1A, 1B, 2, 2ZA, 2ZB, 2ZC, 2ZD, 4A, 6, 6A
four months beginning with the date of service of the notice
5, 5A, 5B, 5C, 5D, 5H, 7, 9
two months beginning with the date of service of the notice
5E, 5F, 5G, 8, 10, 11, 18
four weeks beginning with the date of the service of the notice
4, 7B, 12, 13, 14ZA, 14A, 15, 17
two weeks beginning with the date of the service of the notice
Where Grounds 7A and/or 14 are included in a notice, possession proceedings will be able to be commenced as soon as the notice is served.
Tenant’s Notice to Quit
The RRB also amends the requirements in respects notices to quit given by tenants under assured tenancies. Under the RRB tenants must give at least 2 months’ notice to quit. There is provision for the tenant and the landlord to agree to a shorter notice period in writing.
The RRB also addresses the thorny question of the revocation of a tenants notice to quit. The RRB allows a tenant to withdraw their notice to quit, before it expires, as long as the landlord consents.
The RRB does not alter the regime for a landlord serving a notice to quit (in the circumstances where a landlord is permitted to do so).
Private Landlords (may include social landlords who also let properties on a non-social tenancy basis)
As well at the above, the RRB will:
- Introduce Awaab’s Law for private landlords;
- Give private tenant’s the right to request to keep a pet (subject to some conditions);
- Introduce the Decent Homes Standards for private landlords.
Conclusion
The RRB will bring forward many of the reforms promised by Labour as part of their manifesto and appears to ‘super charge’ the previous Government’s reform proposals. It is important to note that, whilst introducing the RRB to Parliament is an important milestone, it still has to go through numerous readings in the House of Commons, the House of Lords, and through the Committee stage where various amendments may be introduced. Therefore, if the RRB makes it to the statute books it may look fundamentally different.
It is also important to remember that, even if the RRB does make it through the process, different provisions may come into force at different times (and indeed, some may never come into force at all).
The question still hangs over this legislation of how the County Court will cope with all landlords having to go before a Judge to prove their ‘ground’ for possession. The Justice system is already strained and this could cause backlogs for all court users.
At CobbWarren, we can advise you on all your options for these forthcoming changes. Contact us today to speak to one of our specialist housing solicitors.
