The Renters' Rights Bill was introduced by the Labour Government on 11 September 2024, with its aim to provide greater protection for tenants and aims to bring in multiple legal changes to the private rental market. With the Bill expected to become law by Autumn 2025, the Bill brings in several new laws that landlords must understand and prepare for, particularly so when looking to evict tenants. Once the Bill has been passed there will be time before the new law applies in full; as it stands there is likely to be two months before full implementation.
Key changes under The Renters' Rights Bill 2025
Abolition of Section 21
One of the most significant changes that can be seen in the Renters' Rights Bill is the abolition of Section 21, which is often known as "no-fault" evictions which currently allows landlords to evict tenants with no reason. The new law would mean that landlords would no longer be able to end tenancies without a valid, legal reason. This will provide more security for tenants but will mean landlords will have to ensure they adhere by this when evicting tenants.
The Bill proposes changes to the current section 8 notice eviction process by extending the reasons for any eviction. The current grounds for eviction will stay, such as rent arrears, tenants causing damage to the property or causing a nuisance but other new grounds will be available, such as the landlord requires the property back to live in themselves or the landlord needs to sell the property.
Periodic tenancies to replace fixed-term agreements
Fixed-term tenancies, those most commonly granted for 6 or 12 months, will be phased out and the Bill will introduce periodic tenancies. Under this rule, tenants will no longer be tied into a contract for longer than they may want. They will only be required to give two months' notice when ending their tenancy. This gives tenants more flexibility and prevents them from being stuck paying rent when their circumstances change or if the property is not up-to-standard.
Rent increases and ban to rental bidding
All rent increases in the private rented sector will have to follow a new process. Landlords will only be able to increase the rent once a year and it must be line with the open market rate. The market rate of a property is the price in which the property could be let for if it was newly advertised. The aim of this law is to stop landlords potentially taking advantage of using increased rent as a backdoor means of eviction.
There will also be more support for tenants looking to challenge any unreasonable rent increases; if they believe the proposed rent exceeds the market rate they can challenge this at a First-tier Tribunal. If tenants make a Tribunal application, they would be protected from the rent being increased in the interim and having to make any backdating payments, and the new rent price would apply from the date of the Tribunal decision.
In addition to putting extra measures in place for rent increases there is also provision to stop bidding wars on rental properties. The Bill will make it illegal for landlords and agents to ask or accept offers on rental properties above the advertised rent. This aims to make it fairer for tenants in competitive markets.
Limits to rent in advance
There will also be amendments made to the 'Housing Act 1988', the current main piece of legislation regulating tenancies and evictions. Landlords will only be able to insist on up to one month's rent being paid in advance at the start of a tenancy.
Ending discrimination in the rental market
The Bill takes a strong stance against indirect or systemic discrimination. Landlords will no longer be able to refuse tenants simply because they have children, receive housing benefits, or have pets, creating a fairer system for renters.
The Bill means that landlords cannot unreasonably refuse to allow tenants to have pets in the property, and tenants can challenge if they think they have been given an unfair decision. As landlords may be worried about the potential damage that could be caused to a property from pets, they can require that tenants take out insurance covering pet damage.
Awaab's Law and the Decent Homes Standard
The Awaab's Law came into force after the tragic death of Awaab Ishak caused by mould exposure in his social rented home. The 'Awaab's Law' was first introduced for social housing, but the new Bill will extend the law to private rentals. This will give tenants the power to challenge dangerous living conditions and will require landlords to take action to resolve the issues, such as extreme mould, within a specified time.
How can landlords prepare for the Renters' Rights Bill?
If you are a landlord in the private rental sector, ensuring you are prepared for these changes is vital. Our list of our recommendations to stay on top of the new Renters' Rights Bill is as follows:
- Review your existing tenancy agreements and update them in line with the new regulations.
- Understand the new eviction process, so you are fully compliant when the changes come into effect.
- Plan for changes to rent increases and ensure any future increases are justifiable and align with market rates.
- Implement inclusive tenant screening practices, especially in light of the new anti-discrimination rules.
- Inspect properties regularly to ensure they meet the Decent Homes Standard.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
