As largely anticipated, the Renters’ Rights Bill has smoothly passed its second reading in the House of Commons on 9th October. thanks to Labour’s huge majority.
This happened less than a month after the Bill was first introduced and within the first 100 days in office of the new government. The Bill delivers on the government’s manifesto commitment to swing power to renters, with the figurehead reform being the abolition of Section 21 evictions across new and existing tenancies at the same time.
The likely timelines of the remaining stages are as follows:
- Second Reading (9th October 2024). COMPLETE:
- This stage involves debate on the general principles of the bill. If the bill is moving quickly, it suggests strong government support and less opposition, which could allow it to pass this stage within a few weeks.
- Committee Stage (Potentially October-November 2024):
- This stage usually takes 2-3 months, depending on the complexity of the bill and the number of amendments proposed. The Renters’ Rights Bill is complex and may require detailed examination, but if it continues at its current pace, it could be completed by the end of November 2024.
- Report Stage and Third Reading (December 2024 to Early 2025):
- The Report Stage and Third Reading typically occur shortly after the Committee Stage, taking a few weeks to a month. If the bill is pushed forward without major delays, it could pass through these stages by January 2025.
- House of Lords (Early 2025):
- Once it passes the Commons, the bill moves to the House of Lords. The Lords usually take 2-3 months to scrutinise the bill, suggest amendments, and send it back to the Commons if necessary. If there are no significant delays, this could be completed by March to April 2025.
- Royal Assent (Mid-2025):
- After both Houses agree on the final version, the bill is sent for Royal Assent, which is typically a formality. This could occur by May 2025, finalising the bill as law.
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Based on its current pace, the Renters’ Rights Bill is likely become law between April and June 2025. If there are no major delays, this timeline is feasible, as the bill has already shown momentum in its early stages.
The main sections of the Bill are:
- Tenants will be in a stronger position to challenge unreasonable rent increases supported by a Tribunal and landlords will only be allowed to raise the rent once a year and only to the market rate, which will put an end unfair rent increases.
- Tenants will get a quicker resolution over disputes, cutting down on the need to go through the courts through a new Ombudsman service.
- Local councils will be given stronger powers to crack down on unscrupulous landlords. Maximum fines will be increased to up to £40,000 for serious offenders.
- A new database for landlords to share important information on their property standards, showing their compliance with the law and helping councils drive out the minority of criminal landlords.
- Tenants will be able request to have a pet and landlords will not be able to unreasonably refuse. Unfair decisions can be challenged so renters will not have to make a difficult choice between a beloved pet or a home.
The Renters’ Rights Bill represents a significant shift in the landscape for landlords and property investors across the UK, with Kent being no exception. As the bill moves through its stages, it’s clear that greater protections for tenants are on the horizon, which may impact the way you manage your rental properties. Understanding the intricacies of these changes is vital to staying compliant and ensuring that your investments remain profitable. We will be bringing you updates on this bill as it passes progresses through its various stages. We will also be looking in more detail at the various sections of the bill.
At Lifeboat Lettings, we understand that the upcoming changes outlined in the Renters’ Rights Bill may raise questions about how to best manage your properties. Our expert team is on hand to help you navigate these changes smoothly. If you have any specific concerns or would like tailored advice on managing your property portfolio in light of the new legislation, book a call with us today. We’re here to ensure your investments continue to thrive amidst these legislative shifts.
