Is This The End of No-Fault Evictions?

King Charles III confirmed during the King’s speech on 17 July 2024 that new laws are to be introduced into Parliament with the aim of giving “greater rights and protections to people renting their homes, including ending ‘no-fault’ evictions and reforming grounds for possession” through a new Renters’ Rights Bill.

What will be included in this new Bill?

This new bill will include and build upon many of the main pillars of the Conservative party’s old ‘Renters Reform Bill’.

One of the most significant proposals in the old Bill was to abolish a landlord’s right to use a section 21 ‘no-fault’ notice to recover possession of their property and this is the key proposal in the new Renters’ Rights Bill.

Other proposals in the previous Bill that will be included in the new Renters Rights Bill are:

• giving tenants the ability to challenge undefined ‘unreasonable’ rent increases;
• banning rental bidding wars;
• allowing pets;
• the creation of a digital database of landlords; and
• stricter rules for agents and landlords to fix damp and mould issues promptly – ‘Awabb’s Law’.

As well as including:

• Applying a Decent Homes Standard to the private rented sector;
• Making it illegal for landlords to discriminate against possible tenants who have children or who are receiving benefits;
• Supporting the quicker and cheaper resolution of any disputes through the introduction of a new ombudsman for both landlords and tenants;
• Strengthening local council’s enforcement powers in order to clamp down on dishonest landlords.

Further information regarding these elements and how they will be used to overhaul the private rented sector can be found on pages 68-70 in the background briefing notes for the Kings speech 2024.

When can we expect the bill to come into force?

Currently, there is no timeframe concerning when the new Renters’ Rights Bill will come into force and when it is to be implemented was not mentioned in the King’s recent speech.   The Government has issued a lengthy detailed guide to all provisions in the Renters Rights Bill which is being presented to the House of Commons shortly. However, in the new government’s manifesto under the section entitled ‘Break down barriers to opportunity’ under Family security,  they pledged to “immediately abolish Section 21 ‘no-fault’ evictions”.

What impact will this new Bill have?

Although the Renter’s Reform Bill was being introduced for all parties in the private rental sector to achieve parity between the landlord and tenant, many had questioned how it would work in practice and are now asking whether the new Renters’ Rights Bill will make it even harder for landlords to recover their properties.

The changes in legislation may result in many landlords leaving the sector which would lead to fewer properties being available to rent. If there are fewer rental properties available in the private sector, this will have an impact on supply and demand and may cause further increases in rents in what is already a challenging market for tenants.

Will this new bill affect a Section 8 notice?

Whilst the details are presently unclear, it is expected the grounds for possession using a section 8 notice (commonly referred to as a ‘fault notice’) will be modified and/or expanded to include other non-fault grounds for possession, such as the landlord selling the property.

Talk to Tollers

If you require further advice in relation to privately rented properties and how the new Renters’ Rights Bill could affect you… Talk to Tollers on 01604 258558, our experienced Dispute Resolution team are on hand to ensure you receive the most up-to-date information and guidance.

Check back regularly – Our Dispute team will update this article as and when further details are released.