- Greater security for renters closer to becoming law as Renters’ Rights Bill returns to Parliament
- Includes new rules to cap advance rent payments at one month’s rent and safeguard bereaved families
- Will abolish Section 21 ‘no fault’ evictions, end rental bidding wars and tackle unreasonable rent increases
- Supporting the government’s Plan for Change, raising living standards and providing safe and decent homes for all
Millions of renters are set to reap the rewards of greater security in their homes without fear of eviction, thanks to the return of the landmark Renters’ Rights Bill in Parliament today.
New changes announced today will go even further to strengthen the Bill, which is set to be the biggest shake up to the private rented sector for over 30 years, delivering stronger protections and rights to 11 million private renters across the country.
Landlords will no longer be able to demand multiple months’ rent in advance as a condition for securing a home, in a new amendment from the government being debated today. There is currently no limit on how much rent a landlord can request upfront, and some renters are being asked to pay up to a years’ worth of rent, amounting to thousands of pounds before even agreeing a tenancy.
Finding these large sums of cash upfront is impossible for many renters, making it harder for those on lower incomes to get housing and can lock them out of the rental market altogether, or lead to debt or increased risk of homelessness.
Landlords can still be confident that tenants will be able to sustain their tenancy agreements, with the ability to request one month’s rent in advance, alongside a security deposit of up to 5 or 6 weeks rent. These measures can give landlords the confidence that their tenants will meet their commitments and lead to a more sustainable, fairer market for both tenants and landlords.
This amendment will crack down on the small number of unscrupulous landlords who are making the most out of the housing crisis by asking some tenants to pay huge amounts in rent before being able to move into a home, and make sure housing is accessible and fair for millions of tenants.
Deputy Prime Minister and Secretary of State for Housing Angela Rayner said:
“Through our Plan for Change we are tackling the housing crisis head on, delivering the biggest boost in social and affordable housing in a generation, raising living standards across every part of the country, and putting more money into people’s pockets.
“For far too long working people and families have been at the mercy of a fickle and unfair rental market, faced with outrageous upfront costs, and struggling to find a safe and secure place they can truly call home.
“We are delivering on our promise to transform the lives of millions of renters so families can put down roots, allow their children to grow up in secure and healthy homes, and make sure our young people can save for their future.”
Another change in law will safeguard bereaved guarantors, who are often family members, from being forced to pay rent for the rest of the tenancy where a loved one has died.
This will mean families will not be put in unfair financial hardship during a time of grief and will not be liable for extended periods of rent when trying to end the tenancy agreement in unforeseen and tragic circumstances.
The amendment will be set out, alongside other enhanced protections in the Bill, by the Housing Minister in the House of Commons today, marking another step forward in achieving a new reality for 11 million renters.
Housing Minister, Matthew Pennycook, will say to the House today:
“The Bill will modernise the regulation of our country’s insecure and unjust private rented sector, levelling decisively the playing field between landlord and tenant.
“It will empower renters by providing them with greater security, rights and protections so they can stay in their homes for longer, build lives in their communities and avoid the risk of homelessness.
“It will ensure we can drive up the quality of private rented housing so that renters have access to good quality and safe homes as a matter of course.
“And it will allow us to crack down on the minority of unscrupulous landlords who exploit, mistreat, or discriminate against renters.”
Further new amendments to strengthen tenant rights and protections in the Bill include:
- A new rule to protect students which will stop tenants from feeling pressured to sign a lease for a new house so early into an academic year, discouraging landlords from pressuring students into early commitments. Students will no longer be locked into an agreement more than six months in advance of moving in
- Closing potential loopholes in rent repayment orders (RROs), ensuring superior landlords can be liable for RROs if an offence has been committed even if the rent was not paid directly to them, but through an agent or intermediate landlord.
- Fees paid by landlords will directly fund the creation and work of the private rented sector Ombudsman, providing renters and landlords with access to an effective and fair dispute resolution service.
Overhauling the private rented sector will give working families greater security in their own homes while ensuring renters have safe and decent housing.
It has already pledged to abolish section 21 ‘no fault’ evictions for new and existing tenancies to stop tenants being unfairly pushed out of their homes through no fault of their own. In the last five years over 100,000 households have faced a no-fault eviction, with 26,000 facing eviction last year alone.
This is alongside extending the Decent Homes Standard and Awaab’s Law to the private rented sector for the first time, empowering tenants to challenge their landlord over poor conditions including dangerous damp and mould in their homes.
This forms part of the government’s Plan for Change to increase living standards and deliver the homes that people need. Work is already underway to fix the broken planning system and build 1.5 million new homes over the next five years.
Government investment in housing has now increased to £5 billion for this year, which includes an extra £500 million for the existing Affordable Homes Programme to build tens of thousands of affordable homes across the country and grow the economy.
Further information
The Renters’ Rights Bill has its Report and Third Reading in the House of Commons today.
A full list of amendments to the Renters’ Rights Bill can be found here.
