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by Munro Research

Renters' Rights Bill


Official Summary

A Bill to make provision changing the law about rented homes, including provision abolishing fixed term assured tenancies and assured shorthold tenancies; imposing obligations on landlords and others in relation to rented homes and temporary and supported accommodation; and for connected purposes.

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Overview

This Renters' Rights Bill aims to reform the private rented sector in the UK, primarily by abolishing fixed-term assured tenancies and assured shorthold tenancies, replacing them with periodic tenancies with a maximum rent period of one month. It also introduces new tenant rights, landlord obligations, and stronger enforcement mechanisms to improve renter protection and standards.

Description

Tenancy Reform:

The bill abolishes fixed-term assured and assured shorthold tenancies, replacing them with rolling monthly tenancies. This aims to provide greater security for renters and reduce the frequency of rent increases. The bill also introduces a right for tenants to request permission to keep pets, which cannot be unreasonably refused. Landlords must provide tenants with a written statement of tenancy terms and other relevant information.

Discrimination:

The bill prohibits discrimination against tenants based on their having children or receiving benefits in England, Wales, and Scotland, making relevant clauses in tenancy agreements, superior leases, mortgages, and insurance contracts void. It gives the Secretary of State and devolved administrations powers to introduce further protections against discrimination based on other grounds.

Rental Bidding:

The bill makes it illegal to advertise rental properties without specifying a fixed rent and to engage in rental bidding practices, where prospective tenants compete by offering higher rents than advertised.

Landlord Redress Schemes:

The bill requires residential landlords to be members of an approved redress scheme, providing a mechanism for tenants to complain about landlord behavior and seek redress. The government will set standards for these schemes.

Private Rented Sector Database:

A new database will record information about landlords and properties to improve transparency and accountability, helping to tackle rogue landlords. Landlords will be required to register and keep their information up to date, and the database will be accessible to enforcement authorities.

Enforcement:

The bill strengthens enforcement powers, introducing financial penalties for various breaches and offences. It clarifies enforcement responsibilities between local authorities and establishes a lead enforcement authority.

Decent Homes Standard:

The bill aims to improve housing standards by setting minimum requirements for qualifying residential properties in England. This involves specifying requirements and empowering local housing authorities to enforce them, with penalties for non-compliance.

Government Spending

The bill's financial impact is not explicitly stated in the provided text, but it will likely incur costs related to the establishment and operation of the new database, the development and oversight of landlord redress schemes, increased enforcement activities, and potential financial assistance to local authorities. The bill also allows for government financial assistance to support the implementation of its provisions.

Groups Affected

  • Renters: Will benefit from increased security of tenure, the right to keep pets, and protections against discrimination.
  • Landlords: Will face new obligations, including membership of redress schemes, registration on the database, and stricter regulations on rent increases and evictions. They will also face financial penalties for non-compliance.
  • Letting Agents: Will be subject to new regulations and potential penalties for non-compliance.
  • Local Housing Authorities: Will have increased responsibilities for enforcement and data management.
  • Government: Will incur costs for implementing and overseeing the new regulations.

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