Renters' Rights Bill

What is the Renters' Rights Bill?

The Renters' Rights Bill aims to make renting more secure, affordable and fair. It introduces new rules regarding evictions, rent increases and tenant agreements, and introduces new regulations for landlords, provide tenants with greater protections while ensure landlords remain compliant.

Current projections expect the bill to become law around summer 2025, and when introduced will come into effect immediately. This means contracts signed before the bill is introduced will be subject to the new rules and regulations.

Key changes introduced in the Renters' Rights Bill

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.

Transition to Periodic Tenancies

Fixed-term Assured Shorthold Tenancies (ASTs) will be replaced with 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.
Expected notice periods are two months notice for tenants, and four months for landlords.

Rental increase

Tenants will be able to appeal proposed rental increases
Increases are limited to once per year and capped at market rate
Rent increase clauses will now be prohibited
Landlords will now be required to serve a Section 13 notice to increase rent

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

Consequences for breach

The bill will introduce new consequences for landlords who breach the new rules
Landlords in breach of the law may face enforcement action, including fines and potential bans from operating in the sector

Rent in advance

Upfront rent payments will now be capped at one months’ rent
Guarantors will become more important, particular for overseas tenants and those with insufficient credit history

New 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

Pets

Landlords can require pet insurance to cover potential property damages
Tenants will have the right to request to keep a pet in the property, and landlords cannot unreasonably refuse

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

Landlord database, property portal and 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

Renters' Rights Bill FAQs

What is an Assured Shorthold Tenancy?

An assured shorthold tenancy (AST) is the most common type of tenancy in England, typically offering fixed-term contracts with limited tenant security and allowing landlords to evict tenants without cause under Section 21.

Will the new legislation affect existing tenancies?

Yes, existing tenancies will transition to the new system over time. This means that any tenancy agreements created prior to the bill's introduction will still be subject to the terms of the new laws.

What does the abolition of Section 21 mean for landlords?

Section 21, known as a 'no-fault' eviction, allowed landlords to evict tenants without providing any grounds. When the Renters' Rights Bill is introduced, they will no longer be able to do this, and instead must use Section 8 with valid grounds.

Under the new laws, there will be a wide range of provisions for landlords to possess a property, including if the landlord wishes to sell the property.

Will I still be able to regain possession of my property?

Many landlords are concerned about possession of their property once the Renters’ Rights Bill becomes law and abolishes Section 21.

However, landlords will still be able to possess property using the Section 8 process, which includes specific legal grounds like selling the property, moving in, or serious rent arrears.

Can I reject applicants on housing benefit?

No. The Renters’ Rights Bill will prohibit blanket bans on tenants receiving benefits.

Can I refuse tenants with pets?

Under the new laws, tenants will have the right to request to keep a pet, and landlords will be required to consider their request, and must provide a valid, reasonable reason to refuse.

It is not yet clear what will be deemed a reasonable reason for refusal, but if a tenant feels that a landlord has unreasonably refused their requests they will be able to escalate their complaint to the Private Rented Sector Ombudsman or take their case to court.

How much notice will my tenant have to give me?

A tenant will be able to end a tenancy by giving two months' notice under the new periodic tenancy model.