The Renters Reform Bill 2023 and Tenant Rights and Laws

The Renters Reform Bill of 2023 has had a significant impact on tenant rights and tenant laws, impacting the relationship between landlords and tenants greatly. One of the key areas of reform is tenant rights and laws against discrimination. It is now illegal for landlords to reject a tenant without a valid reason.

You should only reject a tenant with good reason, or else there’s a chance that you may be found to be breaking the law. In short, whether or not you illegally discriminate depends on your reason for refusing to rent to someone. If your reason is due to any of what’s known as the ‘protected characteristics’, then you are in the wrong and could be breaking the law. If you fail to comply with these new tenant rights and laws, it could result in legal action against you and fines or jail sentences in some circumstances.

Key changes to tenant laws introduced by the bill

Before we go on to explore the impact of the Renter Reform Bill on tenant rights and laws, it is useful to understand the key changes that were introduced by the bill.

Abolition of Section 21

Firstly, Section 21 no-fault evictions were abolished. This key change was introduced to protect tenants from being unfairly evicted from their property. It was a great step towards improving tenant rights and has taken away the power from landlords to evict tenants for no reason. It has also implemented a fairer eviction process, meaning that landlords must not discriminate against tenants and unfairly evict them. 

Rent Increase Restrictions

Another key change brought about by the Renter Reform Bill 2023 was restrictions on rent increases. To protect tenants, landlords are now required to give at least two months’ notice of rent increases as part of the new tenant laws introduced. Landlords should also review rent annually to ensure their tenants are paying fair rent for their property.

Tenancy Deposit Reforms

Another measure to safeguard tenants, is landlords have to protect tenancy deposits in a government-approved scheme so the money is kept safe during the tenancy. Landlords must also return the deposit within 10 days of the end of the tenancy with clear evidence to justify any deductions.

Improved rights for tenants in shared houses

An important part of the new tenant rights is the improved rights for those renting shared houses. The bill provides guidance on how to fairly allocate rooms and sets out minimum standards for shared facilities to make sure they are safe for your tenants. 

Enhanced rights for tenants experiencing domestic abuse

Another key improvement brought in by the bill is enhanced rights for tenants experiencing domestic abuse. Tenants can terminate their tenancy with shorter notice periods to allow them to leave a dangerous situation as fast as possible. Victims of domestic abuse may also be eligible for a rent refund if they had to leave earlier. 

What is classed as unlawful discrimination under the new tenant rights?

Under the new tenant rights and laws, you cannot reject a prospective tenant because of any of the ‘protected characteristics’, as part of The Equality Act. These are as follows:

• Age
• Being or becoming a transsexual person
• Being married or in a civil partnership
• Being pregnant or on maternity leave
• Disability
• Race, including colour, nationality, ethnicity, or national origin
• Religion, belief, or lack of religion/belief
• Sex
• Sexual orientation

For example, if you were to explicitly reject a tenant because they are over 70, a man, or because they have mental health issues, you’d be breaking the law. It doesn’t mean that you have to favour these characteristics over other tenants. It simply means that you cannot refuse to rent to someone for any of these reasons. By implementing these principles, you are following the new tenant laws introduced to protect tenants from unfair discrimination.

Is positive discrimination legal under the new tenant laws?

Positive discrimination is when someone’s protected characteristic might give them an advantage over other tenants. It is illegal for landlords to favour specific tenants. Although this may not be seen as discrimination, it is part of the new Renters Reform Bill 2023 to create a fairer rental market for tenants.

When can I discriminate?

Discrimination does not necessarily mean unlawful discrimination. There are plenty of reasons why you may not want to rent to someone:

• You believe that they won’t look after your property
• They have numerous County Court Judgements (CCJs) against them
• You get a bad previous landlord reference during the tenant referencing process
• They smoke
• They do not have a sufficient income
• If you simply get an uneasy feeling about them.

Any of these are completely valid reasons to refuse a tenant. The anti-discrimination legislation is not there to force you to rent your property to someone you consider to potentially be an unsuitable tenant but to promote a fair and transparent process that is free from discrimination. If you are unsure, you can always consult legal or housing advice professionals for advice on tenant rights and laws.

These new tenant laws and tenant rights were put in place to create a fairer rental market so when it comes to choosing your tenants, always ensure you promote a fair and transparent process to ensure that all of your potential tenants get treated fairly and equally. As much as you can improve your chances of getting a good tenant, incidents like floods and fires can happen which can lead to loss of rent. As a landlord, it’s a good idea to take out landlord insurance to protect yourself – policies don’t have to cost a fortune either. With CIA Landlords, you can find affordable landlord insurance that still meets your needs. Have a chat with our friendly team on 01788 818 670 to get a quote today.