The Renters’ Rights Bill is one step closer to becoming law. On 14th January 2025, it successfully passed through the House of Commons and is now set to proceed to the House of Lords.
This legislation marks a historic shift in renters protections, and as it progresses into 2025, amendments have been made during its Report Stage, aiming to refine and ensure fairness and clarity for residents and landlords. Here are the key updates and their implications:
Prohibition on Rent in Advance
Under the new amendments, renters will no longer be charged rent in advance beyond the first rent period or any subsequent periods ending within the initial 28 days of a residency. This measure eliminates excessive upfront costs, making residences more accessible to renters across the board.
Additionally, pre-resident rent payments have been classified as “prohibited payments” under the Resident Fees Act 2019, tightening restrictions on this practice.
Landlords will still be able to request one month’s rent in advance, alongside a security deposit.
Enabling Home Adaptations
Landlords must now permit home adaptations for residents with disabilities when recommended through a council’s Home Assessment. Residents also have the right to appeal a landlord’s refusal. This ensures homes are accessible and fit for all, aligning with the Equality Act 2010
Rent Caps and Increases
To combat rental inflation, in-residency rent increases will be capped to the lower of:
The Consumer Price Index (CPI), or the percentage increase in median national earnings.
This provides residents with predictability and safeguards them from sudden financial strain.
Improving Housing Conditions
Local authorities now have broader powers under selective licensing schemes to enforce housing condition improvements. Furthermore, residents can redirect rent payments to independent third parties if landlords fail to address essential repairs promptly, incentive’s timely maintenance.
Insurance and Pet Policies
Landlords letting to residents with pets or those receiving benefits will soon have access to tailored insurance products, following a consultation led by the Secretary of State. This ensures that landlords are not disadvantaged or deterred from renting to such residents.
Reviewing Tenant Deposit Schemes
The government will conduct a comprehensive review of tenancy deposit schemes, focusing on options for deposit “passporting” and improving the dispute resolution process. This initiative seeks to enhance transparency and trust in the rental process.
Annual Housing Market Impact Reports
An annual report will outline the Renters’ Rights Bill’s impact on housing availability, rent levels, and social housing demand. This transparency ensures the Bill’s continued alignment with its intended goals.
An annual report will outline the Renters’ Rights Bill’s impact on housing availability, rent levels, and social housing demand. This transparency ensures the Bill’s continued alignment with its intended goals.
“The passage of the Renters’ Rights Bill through its third reading in Parliament on 14th January 2025 signifies a pivotal moment in the rental sector. This legislation is designed to enhance security for renters while ensuring a fair and balanced system, thus reshaping the rental landscape for both landlords and residents.
Although the bill aims to curb unethical practices, it is noteworthy that many landlords already adhere to stringent regulations. For these responsible landlords, the Renters’ Rights Bill presents both challenges and opportunities. At Centrick, we are committed to guiding our clients through these changes with clarity and support. Our dedicated team is prepared to adapt and ensure compliance, all while maintaining the high standards of service and security that our residents expect.”
— Clare, Build to Rent and Asset Director, Centrick
Conclusion
At Centrick, we are dedicated to encouraging an equitable and thriving rental market. As these amendments progress, we are already evaluating their implications for our clients and communities. From advising landlords on compliance to ensuring residents understand their rights, Centrick remains at the forefront of this transformative era in UK housing.
For the latest insights and support, follow our news updates or contact our team. Together, we can navigate these changes to create a better rental experience for all.
