In our recent article on the Renters’ Rights Bill, we considered the government’s proposals to extend Awaab’s Law and the Decent Homes Standard from the social housing sector to the private rented sector. These reforms uphold the government’s long-standing commitment to make private rented sector housing secure, safe and decent for all.
The Renters’ Rights Bill intends to extend Awaab’s Law to licence agreements. In this article, we consider the current protections offered to licensees and how the proposed extension of Awaab’s Law will affect licensors and licensees.
We have previously provided an overview of Awaab’s Law and its changes to the social housing regulatory regime. In summary:
The current law affords licensees weaker protection than tenants. This is because the covenant implied under the Landlord and Tenant Act 1985 applies to leases only. As such, licensees currently have no legislative ability to challenge their licensors in respect of any health hazards affecting their accommodation.
Despite this, it's important to acknowledge that the majority of licensors are responsible and strive to meet health and safety standards, with many going above and beyond to ensure their properties are of good quality. The extension of Awaab’s Law to licences is the government’s response to the handful of rogue proprietors who cannot afford the same treatment to those with licence agreements.
As currently drafted, the Renters’ Rights Bill extends Awaab’s Law to properties occupied under licence. This will be effected by a new clause 10C in the Landlord and Tenant Act 1985 which will introduce an implied term obligating licensors to remedy prescribed hazards affecting their properties within specified periods of time.
It's currently unclear whether the extension of Awaab’s Law will apply to all types of licences, or whether it will be limited to licences of a specific nature; powers have been reserved to the secretary of state to specify a description of licence agreements to which the legislation will apply.
The extension of Awaab’s Law to licences certainly benefits licensees, affording them similar protections to those of tenants. In doing so, the government hopes to improve housing conditions across the country.
Under the new regime, licensors will be required to bear the full responsibility and cost of remedying any identified hazards. If they are unable to do so they must still take steps to protect the licensee; this could involve relocating them to an alternative property for example.
It's likely, although not guaranteed, that we will see an increase in claims raised by licensees following the implementation of the extension of Awaab’s Law to licence agreements. Licensors however, will be able to rely on the defence set out in the proposed clause 10C(1)(4) of the Landlord and Tenant Act 1985 which is that they have taken 'all reasonable endeavours to avoid the breach'.
The government has committed to the Renters’ Rights Bill being enacted by this summer. However, such will depend on the final consultations of the draft legislation and whether any final changes are made. The legislation is currently passing through the House of Lords and there is still scope for amendments to be made before reaching royal assent stage.
Landlords and licensors who grant tenancy and licence agreements respectively should remain vigilant and keep up-to-date on future and imminent legislative changes regarding their obligations to repair and maintain the condition of their properties. Despite the majority of social housing and private landlords and licensors going above and beyond to ensure both tenants and licensees live in well-maintained properties, the handful that fall short need to understand that breaches of Awaab’s Law could lead to severe financial and criminal sanctions.
We continue to watch this space for any updates on Awaab’s Law and the Renters’ Rights Bill. For further information, please contact the property disputes team.
