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In September 2024, the House of Commons held its first reading of the Renters' Rights Bill 2024, which aimed to reform the build to rent and private rented sectors. The bill passed its second reading in October and is due to become law in summer 2025.

As an aspiring solicitor with a budding interest in property law, I've been reading a lot about the bill – and the significant changes it proposes. In this article, I'll be summarising these changes and commenting on how they'll affect you – whether you're an aspiring property solicitor, a tenant or (like me) both!

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Abolition of Section 21 Evictions

Currently, Section 21 of the Housing Act 1988 allows landlords to evict tenants with two month notice, without needing to justify this decision (known as a Section 21 eviction or 'no-fault' eviction). Landlords can also evict tenants under legal circumstances covered by Section 8, such as rent arrears – although, in such cases, the landlord must evidence to the court that a valid ground for this eviction exists.

One of the most significant, and possibly most controversial, proposals of the Renters' Rights Bill 2024 is the abolition of Section 21 evictions in order to further protect tenants. If this provision becomes law, landlords will only be able to bring tenancies to an end in specific circumstances outlined by law – such as where they wish to sell or redevelop the property, where a tenant is at fault for damaging the property or else where they have significant rent arrears. Otherwise, the tenant will be able to end the tenancy by providing two months' notice.

Rent increases

The Renters' Rights Bill 2024 also proposes that landlords can only increase rent once a year. The new proposed rent must align with market rates and the landlord must serve a 'Section 13' notice to the tenant notifying them of the intended increase at least two months prior to when it's meant to take effect.

The bill also prohibits landlords demanding or accepting offers above the advertised rent price. Additionally, tenants now have the ability to challenge unreasonable rent increases over the market rate at the first-tier tribunal (who'll then subsequently determine what the market rate is).

Extending Awaab's Law

The Social Housing (Regulation) Act 2023 introduced new obligations on mould and damp removal for social housing providers – these provisions were termed 'Awaab's Law'.

The Renters' Rights Bill 2024 intends to further these requirements in the context of private landlords, giving tenants the right to seek enforcement through the courts if landlords don't comply with the provided timelines for addressing such health hazards.

No discrimination against tenant's pets, families or those on benefits

The bill also purports to prevent landlords from discriminating against tenants who have children or receive benefits by making sure that terms in mortgages and leases that provide for such restrictions don't practically take effect.

For tenants who have (or want) pets in their homes, they now have the right to request this from their landlords – who'll have to provide good justification for refusing this request.

What impact could this have on the property landscape?

Suffice it to say that the bill offers no real detriment to tenants. Its proposals seek to ensure the private rented sector is more regulated and that tenant's rights and interests are, in turn, better protected.

However, some landlords might feel that the cost of such changes and their impact upon their investments – alongside its limitations upon their abilities to manage and recover their properties – are a detriment to them. In turn, we may see more landlords shift away from the private rented sector towards less regulated sectors, such as Airbnbs, or else leave the rental market entirely, which may only serve to worsen the housing crisis.

Moreover, between now and the summer of 2025, while Section 21 notices are still around, there may be an increase in possession actions as landlords recover their properties prior to the enactment of the bill.

In its article on the bill, the Law Society notes that “without investment for housing legal aid and the courts, the bill will not achieve its aims”. The bill's emphasis on court action in place of previous procedures – such as no-fault evictions now progressing to landlords needing to show good reason for eviction – may reinforce the pre-existing burden upon the courts, which may even go against the intentions of the bill by making it more difficult for tenants and landlords alike to achieve their aims where necessary.

On the flip side, law firms advising landlords may see an uptick in work, both in anticipation of the enactment of the bill (to protect their clients in anticipation of the proposed changes) and in its wake (to deal with the changes as they are put in force).

How does this impact you, as a budding trainee lawyer?

If, like me, you're interested in the property sector, the Renters' Rights Bill 2024 is a good thing to keep your eye on as the months progress. It's still in the early stages of the legislative procedure and it's worth noting that all the proposed changes above are still subject to parliamentary scrutiny and could still be radically changed (not unlike its predecessor, the Renters (Reform) Bill 2023, which was submitted under the previous government yet faced continuous delays and amendments). As it stands, only time will tell what may become of the bill and its proposed changes.