The Renters’ Rights Bill is poised to bring some of the most significant changes to the lettings industry in years. Spearheaded by Labour, the legislation aims to transform the private renting experience. Currently, the bill is awaiting its second reading in the House of Lords on 4th February 2025 and is moving closer to completion, with royal assent on the horizon.
While discussions and amendments are still ongoing, the key aspects of the bill are expected to include the following:
Abolishment of the Section 21 Notice
The bill will protect tenants by abolishing Section 21 evictions, which currently allow landlords to evict tenants without providing a reason. Under the proposed changes, landlords will only be able to terminate tenancies in specific circumstances defined by law, such as tenant misconduct or the landlord’s need to sell or move into the property. Landlords will also need to give tenants more notice in these situations, providing additional time to find alternative accommodation or settle rent arrears.
Simplified Tenancy Structure
All tenancies will automatically convert to periodic agreements, rolling on a month-by-month basis, even if they originated as fixed-term agreements. This change aims to offer tenants greater security and flexibility while allowing them to challenge poor landlord practices. For tenants wishing to leave, the notice period will increase from one month to two months, giving landlords more time to find new tenants.
No Bidding Price Wars and More Notice for Rent Increases
To ensure fairness, bidding wars among prospective tenants will be prohibited. Properties must be let at market value. Rent increases will still be permitted annually in line with market rates, but landlords will need to provide two months’ notice, compared to the current one-month requirement. Tenants can challenge unreasonable rent increases through a first-tier tribunal if they feel the proposed rent is above market value.
No Advance Rent Payments Beyond One Month
Landlords and agents will be restricted from requesting more than one month’s rent in advance. This policy also prevents tenants from offering additional rent to outbid others for a property. The advance payment must occur after the tenancy agreement is signed but before the tenancy begins.
New Private Rented Sector Ombudsman and Database
The bill will establish a new Private Rented Sector Landlord Ombudsman Service, which all private landlords in England with assured or regulated tenancies must join. Additionally, a Private Rented Sector Database will be introduced, requiring landlords to register themselves and their properties. This database will serve as a comprehensive resource, providing landlords with guidance and ensuring transparency.
Pets in Rental Properties
Recognising the importance of pets to their owners, the bill will make it unlawful for landlords to unreasonably withhold consent for tenants to keep pets. Landlords may require tenants to obtain insurance to cover potential pet-related damages, offering peace of mind for both parties.
Prohibiting Rental Discrimination
The bill will address discriminatory practices, such as “No DSS” or “No Children” policies, as well as indirect methods used to exclude tenants with children or those on benefits. Landlords will retain the right to screen tenants based on affordability and suitability but cannot reject applicants purely on these grounds.
Decent Homes Standard & Awaab’s Law
The bill will introduce the Decent Homes Standard to the private rental sector, setting clear benchmarks for housing quality and safety. This ensures tenants live in safe and well-maintained properties. Additionally, Awaab’s Law will mandate landlords to address hazards like damp and mould within specific timeframes, improving tenant living conditions.
Alison, Our Lettings Manager, Comments:
“While this bill contains a lot of information, there are several positive aspects that will benefit everyone involved. Most landlords already provide good-quality homes, comply with regulations, and are open to tenants with pets or children. These landlords are usually willing to adapt to change.
However, staying informed about legislation has never been more critical. We recommend landlords consider using a managing agent to keep up with changes and avoid potential fines. At Rush Witt & Wilson, we regularly attend webinars and training sessions to stay updated and will continue to do so as the bill progresses into law. For more information on our property management services, please contact us on 01424 430011.”
