It follows extensive consultation and forms part of the government’s wider “Fairer Rented Sector” initiative.
The Bill introduces several reforms designed to enhance tenant protections, simplify tenancy agreements, and improve living conditions, Gary Jeffries, Head of Residential Property at Vail Williams LLP, explores.
Some of the key provisions of the Bill include:
Landlords will no longer be able to evict tenants without providing a valid reason. This change strengthens tenant security and aligns with similar reforms in Scotland and Wales.
All Assured Shorthold Tenancies (ASTs) will be replaced with a single system of periodic tenancies. Tenants can give two months’ notice to end the tenancy, while landlords must meet stricter criteria to terminate agreements.
The Decent Homes Standard, previously applied to the social housing sector, will now apply to private rentals. This sets minimum living standards for all rented properties, focusing on health, safety, and energy efficiency.
Landlords can no longer refuse applications from tenants on benefits or those with children, combating discrimination and promoting inclusivity.
A mandatory national landlord register will be introduced to improve transparency and accountability within the PRS.
The Renters’ Rights Bill 2024 represents a significant shift in the dynamics of the UK’s private rented sector. Whilst the reforms aim to improve tenant security and living conditions, they do present potential challenges for landlords – both in terms of compliance and profitability.
Gary Jeffries, Partner and residential property expert at Vail Williams LLP.
The Bill will have a positive impact for tenants, improving security of tenure. This means that tenants will have greater confidence to report maintenance issues without fear of retaliatory eviction.
The changes will also improve living standards for tenants. The extension of the Decent Homes Standard could lead to better-maintained properties, reducing long-term health and safety risks for the occupants.
Landlords will need to be mindful of potential hurdles such as increased compliance costs and a reduction in flexibility.
For property investors, the Renters’ Rights Bill introduces both challenges and opportunities – from more regulation and red tape to better opportunities in the build-to-rent market.
Smaller landlords may find the heightened compliance burden discouraging, which could lead to consolidation within the market. Professional investors or institutional landlords with larger portfolios may benefit from reduced competition.
Meanwhile, institutional investment in the Build-to-Rent sector is likely to grow, given its ability to integrate compliance measures at scale.
This sector is already well-positioned to meet the Decent Homes Standard and benefit from increasing tenant demand for professionally managed properties.
With energy efficiency improvements required under the Decent Homes Standard, there is an opportunity to invest in retrofitting or developing energy-efficient housing to cater to the PRS.
The Renters’ Rights Bill 2024 represents a significant shift in the dynamics of the UK’s private rented sector. Whilst the reforms aim to improve tenant security and living conditions, they do present potential challenges for landlords – both in terms of compliance and profitability.
For investors, understanding these changes will be critical to adapting investment strategies as well as to enable them to capitalise on emerging opportunities, such as Build-to-Rent and sustainable housing investments.
For help and support with what the Renters’ Rights Bill will mean for you or your organisation, get in touch with our residential property experts.
