UK to ban no‑fault evictions in monumental Renters' Rights Bill

The British Labour government has announced changes in the law regarding property rentals. The media has called the Renters' Rights Bill the biggest revolution in the housing market in the past 30 years. The most significant change introduced by the new regulations will be the prohibition of no-fault evictions.

The reform will primarily concern "periodic rental agreements," equivalent to indefinite-term contracts in Canada. Periodic contracts in the United Kingdom renew automatically, either weekly or monthly until one of the parties expresses a desire to terminate the agreement. Until now, property owners could do this at any moment under "no-fault evictions," with a notice period of two to six months, depending on the type of contract.

The real estate market in the UK currently primarily involves rental properties in the hands of "professional landlords" and "rental agencies," who earn by renting out multiple units. According to the portal uswitch.com, in 2023, 18.8 percent of properties in the United Kingdom were in the private rental market.

The new regulations will also prohibit no-fault evictions, give tenants the right to have pets, and guarantee landlords will repair structural problems, such as dampness and mould, within specified timeframes. The English Housing Survey found that private rental properties often contain the oldest and least well-maintained properties.

The Renters' Rights Bill will also ban "bidding wars" in the rental market. Landlords and rental agents will be legally obliged to publish the rent for their property and will not be able to encourage or accept offers above this price. Posting listings with information that excludes renting to people with children or those receiving benefits will also be prohibited.

Housing Minister Matthew Pennycook announced that the new law could become effective in mid-2025. The Labour Party also stated that the bill would eliminate the threat of arbitrary evictions and increase security and stability for tenants. Pennycook also assured that clear and extended bases would be created for property owners to reclaim their properties if necessary.