What the Renters’ Rights Act means for landlords

1. Abolishing Section 21: no more no-fault evictions 

• New guidelines will specify acceptable reasons for eviction, providing tenants with greater security.
• Landlords will have to issue a Section 8 notice citing the valid reason and providing evidence thereof.
• By abolishing Section 21, landlords can no longer evict tenants without a valid reason.

2. Transition to periodic tenancies 

• Fixed-term tenancies where tenants are obliged to remain for a set period will be abolished, and all tenancies will become Assured Periodic Tenancies.
• This means that tenancies will continue on a rolling basis until the tenant decides to leave or the landlord establishes a valid reason for possession.
• The notice period landlords must give depends on the possession ground used. Some grounds require two months’ notice, others four months, and certain serious cases allow shorter notice periods. There is no single “general” notice period for landlords.

3. Rental increase 

• Rent increases will be limited to once per year. 
• Landlords must use the statutory Section 13 procedure to increase rent and give tenants at least two months’ notice.
• Existing rent review clauses cannot be used to raise rent after commencement. 
• Tenants will be able to challenge a proposed increase at the First‑tier Tribunal, which will determine the open market rent.

4. Rent bidding and market value 

• Landlords and agents will be banned from encouraging or accepting rent bids above the advertised price.
• Tenants will still be able to offer below advertised price but landlords will not be obliged to accept.

5. Rent in advance  

• Landlords will be limited to requesting no more than one month’s rent paid in advance in the period between the tenancy being agreed and the tenancy starting.
• Once the tenancy has begun, landlords will not be permitted to require further rent to be paid in advance.
• Guarantors will become more important, particular for overseas tenants and those with insufficient credit history.

6. New anti-discrimination laws 

• It will be illegal for landlords or agents to have blanket bans on renting to tenants receiving benefits, promoting fairer access to housing.
• It will also be illegal to discriminate against tenants on the basis that they have children, making housing more accessible for families.

7. Pets 

• Tenants will have the right to request to keep a pet in the property, and landlords cannot unreasonably refuse.

8. Decent Homes Standard & Awaab's Law 

• Rental properties must meet the minimum quality and safety criteria.
• Local authorities will have increased power to enforce these standards.

9. Private Rented Sector Database and Landlord Ombudsman 

• An independent ombudsman for the rental sector will resolve disputes between landlords and tenants, offering an alternative to court proceedings.
• Landlords will now be required to join a property portal which will inform landlords of their legal obligations and assist tenants in making informed housing decisions.

10. New enforcement powers 

• The act will introduce new enforcement powers for local authorities.
• Landlords in breach of the law may face action, including fines and potential bans from operating in the sector.