Guide: Legislation Set to Significantly Impact the UK Rental Sector

20th September 2024

The new Labour government legislation is set to significantly impact the UK rental sector, primarily through the Renters’ Rights Bill. This bill brings several key changes:

1. End of Section 21 ‘No-Fault’ Evictions: One of the most notable reforms is the banning of Section 21 evictions, meaning landlords will no longer be able to evict tenants without giving a reason. This is aimed at providing renters with more security, but it may increase the pressure on the courts to handle possession claims where landlords have legitimate grounds for eviction.
2. Decent Homes Standard: For the first time, the Decent Homes Standard, previously applicable only to social housing, will extend to private rentals. This will require landlords to meet higher quality standards, ensuring properties are safe and well-maintained. Councils will be granted more powers to enforce these standards, with significant fines for non-compliance​.
3. Ban on Blanket Bans: The bill also seeks to make it illegal for landlords to impose blanket bans on renting to tenants with children or those receiving benefits, enhancing access to housing for vulnerable groups.
4. Rent Control Measures: The legislation will limit rent increases, allowing only one rent hike per year, and banning rent bidding wars. This aims to prevent tenants from being priced out mid-tenancy or forced into bidding wars, particularly in high-demand areas​.

These reforms are designed to improve tenant security and housing quality, but concerns remain among landlords about increased administrative burdens, particularly regarding the capacity of the court system to handle more disputes under the new rules​.