Renters’ Rights Bill 10: what the Bill won’t apply to

As the Renters’ Rights Bill proceeds through Parliament, this is the final article in our series examining the proposed changes.   Links to the articles already published are at the end of this article. 

The Government says that it aims to effect transformative tenancy reform in the private rented sector by passing the Renters’ Rights Bill.  But the Bill will not apply to all private housing arrangements. 

What does not fall under the Renters Rights Bill?

The Renters Rights Bill will not apply to housing arrangements that are not Assured Tenancies under the Housing Act 1988.  As currently drafted, that means the following will not be covered by the Bill: 

1. Tenancies for a fixed term of more than 7 years:  at the moment we have limited details around this exception, and it may become a focus of attention. 
2. High rent properties:  prime residential property commanding an annual rent in excess of £100,000. 
3. Service occupancies:  accommodation for employees who have to live in a particular property in order to do their jobs, such as live-in nannies, or on-site security guards.
4. Company lets:  properties rented by businesses for their employees to use, such as employees temporarily working in the UK.
5. Agricultural tenancies:  if the property is part of an agricultural tenancy. 
6. Holiday lets:  if the property is let for a holiday only.
7. Resident landlords: a lodger sharing a property with his or her landlord.
8. Tenancies for no or minimal rent:  if the rent is less than £1,000 per annum in Greater London or £250 per annum elsewhere (including if the rent is a peppercorn) or there is no rent. 
9. Crown tenancies:  properties owned by central Government departments, or by Crown entities.
10. Student accommodation:  accommodation provided to students by specified educational institutions (but note that student accommodation provided by others is subject to the Bill).
11. Licensed premises:  if the property has a licence to supply alcohol for consumption on site.  
12. Local Authority tenancies:  council houses and homes provided by housing associations are subject to their own regulations.
13. Temporary accommodation:  short-term accommodation, such as temporary accommodation for the homeless.

 Significance of the Bill

The changes the Bill would make represent major reform of the private rental market in England – they are the most significant changes since the 1980s. 

The changes will affect security of tenure, tenants' rights, landlords’ responsibilities and rent review. 

The Bill will result in the creation of a new Ombudsman scheme, and consequent changes to the court and rent review tribunal are envisaged   

We do not yet know how landlords or tenants will respond to the changes, or what the wider implications for the market and the availability of homes will be.  Major residential changes in Wales have not led to the mass exit of landlords and properties from the letting market that some commentators predicted, but the Bill goes further and wider than the Welsh changes, so its impact is expected to be significant. 

Items in this series:

Renters' Rights Bill 1: Residential tenancy changes proposed by the Bill, Maddie Dunn

Renters' Rights Bill 2: How to obtain possession if section 21 notices are abolished? Maddie Dunn

Renters’ Rights Bill 3: Children, Benefits and Pets, Maddie Dunn

Renters’ Rights Bill 4: Enforcement, Maddie Dunn

Renters' Rights Bill 5: Succession, Maddie Dunn

Renters' Rights Bill 6: Employee Accommodation, Maddie Dunn

Renters’ Rights Bill 7: Agricultural employees and holdings, Maddie Dunn 

Renters' Rights Bill 8: Rent Review, Maddie Dunn

Renters’ Rights Bill 9: Regulation and Registration, Maddie Dunn