Social Housing Speed Read – Renters’ Rights Bill Update
12th February, 2025
In this weeks social housing speed read we update you on the progress of the Renters' Rights Bill.
We last updated you on the Bill in October, which can be accessed here. Since then, it has progressed through the House of Commons and has already passed both its first and second readings in the House of Lords. The rapid progress being made has led experts to claim that the Bill could be enacted as early as March 2025, much earlier than the originally anticipated Summer 2025.
What has Changed?
There haven’t been many major changes to the Bill, from its first reading in the House of Commons back in September 2024. However, landlords should note the three recent changes discussed below.
Limits to a Landlords Ability to Demand Rent in Advance
Primarily aimed at the Private Rented Sector, the Bill will amend the Tenant Fees Act 2019 and the Housing Act 1988, to restrict the amount of rent that can be requested upfront, alongside a deposit. This will be limited to a maximum of one rental period. This means that if rent is paid monthly, landlords can only request one month’s worth of rent in advance of the tenancy starting.
If this is not complied with, landlords can face civil enforcement, including fines of up to £5,000. Landlords currently requesting more than this may need to reassess their cashflow, to ensure they can comply with this.
Classification of Periodic Assured Tenancies
As has been known since its introduction, the Bill will bring fixed term assured tenancies to an end. Periodic assured tenancies will become the default, which tenants can end by giving 2 months’ notice.
This change will be instant, meaning that once the Bill is enacted all tenancies to which this change applies will become periodic.
Initially the Bill proposed that any fixed term tenancy of 7 years or more would not become an assured periodic tenancy. The stance on this has now changed, so that any tenancy up to 21 years in length will become an assured periodic one. This means that most existing fixed term tenancies will become periodic assured tenancies. For most landlords, their existing fixed term tenancies will likely be less than 21 years, so they will be governed by the assured periodic tenancy rules, from the enactment of the Bill.
Any landlords with fixed term tenancies of 21 or more years will need to become familiar with the rules under regulation of long leases.
Further Requirements for Repossessing under the Ground of Redevelopment
Further conditions must be complied with where social landlords seek to repossess homes under the ground of redevelopment. These further steps include providing alternative affordable accommodation, in a suitable location, which is not overcrowded, and a requirement for the tenants removal costs.
Key Reminders for Social Housing Landlords
Once the Renters Rights Bill is enacted, social housing landlords need to be aware that:
- Section 21 ‘no fault’ evictions will be banned. This will be in force, as soon as the Bill is enacted, meaning all landlords will need a reason to end a tenancy. Social landlords should remember that they can still evict anti-social tenants, who damage their properties, do not pay rent, or are convicted of crimes.
- The Decent Homes Standard will be more rigorously enforced, with harsher civil and criminal penalties for failure to comply. Landlord’s however, will first be served with a notice, requiring the issue to be remedied within a specific time frame. If the issue remains, it is then that civil penalties of up to £7,000 can be issued and a criminal charge may be brought.
- Awaab’s Law will require all landlords to investigate and remedy damp and mould hazards within specific timeframes. Landlords must provide an initial report within 14 days of a tenant raising a concern of damp or mould. Work to remedy the hazard must begin within 24 hours and 7 days, depending on the severity of the damp and mould issue.
If you have any questions about what the Renters’ Rights Bill could mean for your business, please do not hesitate to contact one of our expert Social Housing Lawyers.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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