The introduction of The Renter’s Rights Bill is proving to be the most significant reform the private rented sector has seen since the Housing Act 1988. Introduced to parliament in September 2024, the Bill has wide-ranging implications for landlords, tenants and lettings agents alike.
The Bill has now progressed through the House of Commons and is currently under consideration in the House of Lords. The Bill had its first reading in the Lords on January 15 2025, and the second on 4th February 2025 and is widely expected to become law this spring.
Key Provisions:
The Bill aims to transform the private rented sector in England with several notable measures:
End fixed term Assured Shorthand Tenancies: Introduce a new system of rolling periodic tenancies for new and existing tenancies from the implementation date.
Abolition of Section 21 'No Fault' Evictions: The Bill proposes ending Section 21 evictions, providing tenants with greater security by preventing landlords from evicting tenants without a valid reason.
Reformed Grounds for Possession: It introduces clear and comprehensive grounds under which landlords can regain possession of their properties, ensuring a balanced approach that protects both tenant rights and landlord interests.
Introduction of a Private Rented Sector Landlord Ombudsman: A new ombudsman service will be established to offer tenants a fair and efficient platform for resolving disputes without resorting to the courts.
Creation of a Private Rented Sector Database: The Bill mandates the creation of a database where landlords must register their properties, promoting transparency and aiding local authorities in enforcing housing standards.
Right to Request Pets: Tenants will have the right to request permission to keep pets, and landlords cannot unreasonably refuse such requests, unless written in a head lease. Landlords may require pet insurance to cover potential damages.
Application of the Decent Homes Standard: The Bill extends the Decent Homes Standard to the private rented sector, ensuring that rented properties meet minimum quality and safety criteria.
Ban on Discrimination: It becomes illegal for landlords and agents to discriminate against tenants based on their receipt of benefits or if they have children, promoting fairness in tenant selection.
Prohibition of Rental Bidding Wars: The Bill seeks to end the practice of rental bidding, preventing landlords and agents from encouraging prospective tenants to outbid each other, thereby promoting fairness and affordability in the rental market.
Ban on requesting rent in advance: Landlords and agents will no longer be able to request rent in advance of a tenant entering into a tenancy agreement.
End in-tenancy rent increases written in to contracts: Landlords will only be allowed to raise the rent once a year to the market rate.
Apply Awaab’s Law to the Private Rented Sector: Setting clear legal expectations about timeframes within which Landlords must take action to serious hazards.
How will the Bill affect you as a Landlord, following implementation:
End of Fixed Term Tenancies – Assured and Assured Shorthold Tenancies (AST’s) only:
All new assured tenancies will be periodic and all existing fixed term assured shorthold tenancies will convert to the new system of periodic assured tenancies from the implementation date. Landlords and tenants will no longer be able to agree a fixed term assured shorthold tenancy, instead tenancies will be periodic from the start and tenants will be able to stay in a property until they decide to end the tenancy by giving two months’ notice, or until the landlord can evidence a valid ground for possession.
Removal of Section 21 Notice:
Landlords will no longer be able to serve a Section 21 notice to regain possession of a property, instead landlords will need to rely on the grounds of Section 8 if they wish to regain possession of the property. The Bill amends the grounds for possession under Section 8 of the Housing Act and will include grounds for a landlord selling a property, landlord (or close family member) wishing to move back into the property and rental arrears.
How much notice will a landlord need to provide to a tenant if they wish to sell a property or move back in:
Landlords will need to give four months’ notice to move in to or sell a property, but there will be a 12-month protected period for tenants at the beginning of a tenancy where landlords will be restricted from using either of these two grounds. It is not yet clear from when this 12-month protected period will commence, when applying it to existing fixed term tenancies that will convert to Periodic assured tenancies on the Bill becoming law. There will also be restrictions on when a landlord can relet a property following them serving notice to a tenant to either sell the property or move back in. We believe this will be a minimum period of 12 months before you can re-let the property.
How much notice will a landlord need to give under other grounds of Section 8:
Each Ground in Section 8 has its own required minimum notice period and further information can be found at Guide to the Renters’ Rights Bill - GOV.UK
Rent Increases:
Landlords will only be allowed to raise the rent once a year to the market rate and must issue a Section 13 notice to the tenant, giving at least two months notice to increase the rent. Tenants will be able to challenge an increase through the First Tier Tribunal if they feel it is not representative of the market value. Rent review clauses in tenancy agreements will no longer be valid.
Rent In Advance:
Landlords will only be allowed to request rent in advance for a maximum of one month. Furthermore, a rent payment will not be able to be requested until such time as a tenancy agreement has been entered into by the tenant. Any rent taken in advance for any tenancy period exceeding one month, and any rent taken prior to a tenant signing and dating a tenancy agreement will be deemed a “prohibited payment” for the purposes of the Tenant Fees Act 2019.
End bidding wars:
Landlords and agents must publish an asking rent for the property and Landlords and agents will be prohibited from asking or encouraging a prospective tenant to offer an amount of rent above the advertised marketing rent.
Pets:
Tenants will have the right to request a pet in the property which the landlord cannot unreasonably refuse. Landlords will be able to reasonably refuse a pet if accepting one would breach an agreement with a superior landlord. Landlords will also be able to request that tenants take out insurance that covers the risk of pet damage or can request that a tenant pays the landlord’s reasonable costs of having insurance that covers the risk of pet damage.
Property standards:
The legislation will amend the Housing Act 2004 to include a new system for assessing housing conditions and enforcing housing standards. Local councils will also have a range of available enforcement mechanisms available to them if a property fails to meet the Decent Homes Standard. The Bill will also extend Awaab’s Law to privately rented homes and introduce new requirements requiring private rented sector landlords to address hazards, such as damp and mould within a specified time period.
Landlord Ombudsman and Landlord Database:
The Bill will introduce a new Private Rented Sector Landlord Ombudsman Service which landlords will be required to join. This will provide prospective, current, or former tenants with access to redress services should a dispute arise with their landlord. There will also be an online public Private Rented Sector Database which landlords will be legally required to register both themselves with and the properties they let before a property is marketed. The database will provide guidance to help landlords understand their legal obligations and demonstrate compliance, alongside providing better information to tenants to make informed decisions when entering into a tenancy agreement.
Discrimination in the rental market:
The Bill will ban discrimination against prospective tenants with children or those in receipt of benefits to ensure everyone is treated fairly. Landlords and agents will continue to have the final say on who they let their property to and can carry out referencing checks to make sure tenancies are suitable for all parties. They will be able to do this based on affordability, but not on the basis the prospective tenant has children or is in receipt of benefits.
As with the current law regarding assured shorthold tenancies, tenancy agreements with a rental value over £100,000 per annum, resident landlords and company lets are excluded from the Renters’ Rights Bill at the moment.
We are committed to supporting you and will provide further updates once we have more information as the Bill progresses. Please note, until the Renters’ Rights Bill has become law, none of the above applies.