Renters’ Rights Bill is Labour’s answer to the Conservative's Renters (Reform) Bill. Here's what agents need to know about the difference between these two bills.
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 have introduced their version of the Renters (Reform) Bill, announced during the King's Speech 2024, called the Renters' Rights Bill.
This new part of legislation introduced by the Labour Party was introduced “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 Bill? Read our guide to find out more:
Here's an overview of what each bill promises:
Abolishing Section 21
Will Labour’s Renters’ Rights Bill 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 Bill, Labour mentioned that as well as 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 like the Renters (Reform) Bill, this new legislation doesn’t state how they will ban the section and reform the courts.
Rent increases
Does Labour’s Renters’ Rights Bill 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, similar to Section 13, landlords and agents might have been able to raise their rents once a year if it was 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 Bill, Labour has pledged to strengthen tenants’ rights and protections, including rent increases.
While the bill is lacking details as to how they will achieve this, Labour has pledged to “challenge rent increases designed to force them out” as well as end “rental bidding wars by landlords and letting agents”.
Decent Homes Standard
Does Labour’s Renters’ Rights Bill include Decent Homes Standards? Yes and Awaab’s Law
Did the Conservative’s 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 Bill, it was confirmed that a Decent Homes Standard, which initially was only applied 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 landlords are maintaining their homes to a decent standard. This included a £30,000 fine or 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 Bill.
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 ensure that landlords will be set to legal expectations and time frames to ensure an hazards in the home are dealt with within a specific time frame.
Pets in Lets
Does Labour’s Renters’ Rights Bill 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 with only 7% of private landlords advertising a pet-friendly rental. 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 Bill includes policies that cover pets in lets, allowing “tenants the right to request a pet”.
In the proposed bill, it states that landlords must consider and not unreasonably refuse a tenant's request. However, “Landlords will be able to request insurance to cover potential damage from pets if needed”.
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.
