Renters' Rights Act vs Renters (Reform) Bill - what letting agents need to know

22 July 2024

Renters’ Rights Act is Labour’s answer to the Conservative's Renters (Reform) Bill. Here's what agents need to know about the difference between these two pieces of legislation.

The Renters (Reform) Bill was a key piece of legislation that was deemed to shake up the private rental sector. However, due to the snap general election, the bill did not pass through the government before it was dissolved.

To ensure reform is made within the sector, the Labour Party introduced their own successful version of the Renters (Reform) Bill, announced during the King's Speech 2024, now called the Renters' Rights Act.

This piece of legislation, introduced by the Labour Party, was brought forward “to give greater rights and protections to people renting their homes, including ending no-fault evictions and reforming grounds for possession”.

But what is the difference between the new Renters (Reform) Bill and the Renters’ Rights Act? Read our guide to find out more:

Here's an overview of what each piece of legislation included:

  Renters Reform Bill Renters' Rights Act
Abolish Section 21
With court reform

Without court reform
Expand grounds for possession
Decent Homes Standard
Plus Awaab's Law
Limit rent increases to once per year
Prohibit discrimination
Allow renting with pets
Introduce a landlord ombudsman
Ban rental bidding wars
Create a PRS database
Strengthen enforcement of non-compliance

 

Abolishing Section 21

Will Labour’s Renters’ Rights Act abolish Section 21? Yes

Did the Conservative’s Renters (Reform) Bill aim to ban Section 21? Not until the courts were reformed

Abolishing Section 21 ‘no-fault’ evictions has been a contentious element of private rental reform, with many worrying about what will replace this policy.

The Conservative’s Renters (Reform) Bill planned to abolish section 21 evictions for assured shorthold tenancies to “level the playing field between landlord and tenant”.

However, there was no confirmed explanation of how the Conservatives would ban Section 21 evictions. In October 2023, the Conservative government said banning no-fault evictions would only happen when” sufficient progress has been made to improve the courts”.

For the Labour Party, abolishing Section 21 no-fault evictions was a key policy for the private rental reform.

Their manifesto promised to “immediately abolish Section 21 ‘no fault’ evictions”. Deputy Prime Minister and Secretary of State for Housing, Communities and Local Government, Angela Rayner, stated last year she would ban no-fault evictions immediately if Labour were elected.

In the Renters’ Rights Act, Labour stated that, in addition to abolishing no-fault evictions, they will create “New, clear and expanded possession grounds” to make it easier for landlords to reclaim properties when needed.

However, just as with the Renters (Reform) Bill, this new legislation doesn’t specify how they will ban the section or reform the courts.

Rent increases

Does Labour’s Renters’ Rights Act allow rent increases? Only if it's in line with market rates

Did the Conservative’s Renters (Reform) Bill allow rent increases? Yes if in line with market rates

The initial Renters (Reform) Bill white paper outlined the plan to end the use of rent review clauses.

However, as with Section 13, landlords and agents might have been able to raise rents once a year if they were in line with market rates.

If a tenant believed these increases were disproportionate, they could’ve disputed the raise and taken the case to a tribunal.

In the Renters’ Rights Act, Labour has pledged to strengthen tenants’ rights and protections, including rent increases. 

Decent Homes Standard

Does Labour’s Renters’ Rights Act include Decent Homes Standards? Yes, and Awaab’s Law

Did the Conservatives’ Renters (Reform) Bill include Decent Homes Standards? Yes

The Renters (Reform) Bill was the first piece of legislation that required a minimum housing standard for the private rental sector.

During the committee stage of the Act, it was confirmed that the Decent Homes Standard, which had initially applied only to the social housing sector, would now apply to private housing. 

The Conservative Government announced that local authorities would have been given further powers to ensure that landlords maintain their homes to a decent standard. This included a £30,000 fine or a banning order.

The Labour Party decided to take the standard of private housing further by integrating the Decent Homes Standards and Awaab’s Law through the Renters’ Rights Act.

Labour has committed to ensuring homes are safe, secure and hazard-free. Awaab’s Law, which is currently applied to the social housing sector, will set legal expectations and time frames for landlords to address hazards in the home within a specific timeframe.

Pets in Lets

Does Labour’s Renters’ Rights Act include pets in lets? Yes 

Did the Conservative’s Renters (Reform) Bill include pets in lets? Yes

Pets in lets is a crowd-pleaser for tenants. Data from 2021 shows that 40% of UK households own a pet, yet only 7% of private landlords advertise pet-friendly rentals. It is something desperately needed in the private rental sector.

The Renters (Reform) Bill initially introduced regulations to allow pets in lets. Proposed legislation stated that tenants could request in writing if they wished to have a pet in the rental property. A landlord must have “reasonable” grounds to refuse the request.

Labour’s Renters’ Rights Act includes policies that cover pets in lets, allowing “tenants the right to request a pet”.

The Act states that landlords must consider a tenant's request and not unreasonably refuse it. 

This article is intended as a guide only and does not constitute legal advice. Visit gov.uk for more information on the Renters' Rights Bill. 

Further reading