The Renters’ Rights Bill: (Another) Tour Bus Guide – Stop 1: Deposits, gas safety certificates, and more

The new Labour Government has published its Renters’ Rights Bill. What does it mean, for landlords and for tenants, and how does it differ from the previous government’s Renters (Reform) Bill?

In this series of articles, members of the 42BR Housing Team stop off at different landmarks, considering the implications of the new Bill – this time in a red coloured bus.

Stefan Liberadzki discusses deposits, gas safety certificates, and more

Like the previous Bill, which never made its way through Parliament, the Renters’ Rights Bill proposes to abolish assured shorthold tenancies and end “no-fault” evictions under section 21.

In my previous post, I asked whether there would still be effective enforcement for landlords who do not comply with their regulatory obligations, many of which are pre-conditions to serving a section 21 notice.

In this respect, the new Bill is much like the old one. While it adds to and amends the current Schedule 2 grounds for possession, it also introduces a general requirement (except for anti-social behaviour cases under Grounds 7A and 14) to comply with deposit protection and information rules before a possession order can be made.

These proposed new rules appear to be less stringent than the current section 21 deposit protection rules.  They only apply when the court considers making an order, not (as now) when the notice is served.  Currently, landlords must protect the deposit within 30 days of receipt, and give the prescribed information to the tenant before the notice is served; otherwise the notice is invalid. In future, they will be able to do both of these things, or repay the deposit, at any time up to the hearing date.

Everything else that is currently a precondition to serving a valid section 21 notice is now gone. This means that the following requirements will no longer be relevant where a landlord seeks a possession order, on any ground:

• Providing copies of gas safety certificates
• Providing copies of energy performance certificates
• Providing copies of the How To Rent booklet
• Complying with HMO licensing requirements
• Not charging the tenant prohibited fees
• Not demanding an excessive deposit
• No improvement notices served by the local authority in the previous 6 months
• Responding to the tenant’s written complaints about disrepair within 14 days

Undoubtedly, many landlords will welcome this simplification.

For tenants, there is a concern that other mechanisms for enforcing important statutory duties are not sufficiently effective. The relevant regulatory agencies – mainly local authorities – are seriously under-resourced; while many tenants are unaware of their rights to pursue civil claims (for breach of HMO licensing rules, for example), or simply cannot afford the legal assistance that they need.

It remains to be seen whether any additional requirements will be added, as the Bill progresses through Parliament.

8th Oct 2024

Stefan Liberadzki

Call 2013