The bill introduces new protections and rights for the 11 million private renters in England, promising greater stability of tenure, longer notice periods to find a new home, and safeguarding against eviction and unfair rent rises.
While tenants get more rights, the bill gives landlords less control over their properties, which, argues the National Residential Landlords Association (NRLA), could force landlords out of the sector.
In our two-part lowdown special on the Renters’ Rights Bill, Mortgage Solutions looks at how we got here, the bill’s biggest changes and what we can expect to happen next.
Renters’ Rights Bill – how did we get here?
The legislation was first introduced by the Conservatives as the Renters’ Reform Bill in 2023 with the aim of providing more security for tenants in their homes, but it failed to pass through government before the party was ousted by Labour.
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One of the key purposes of the bill, under both governments, has been to abolish Section 21 ‘no-fault’ evictions and move away from fixed-term tenancies to periodic agreements, also known as rolling contracts.
However, Michael Gove, the Conservative housing minister, postponed the ban, stating that the courts did not have the capacity to deal with the extra workload caused by a rise in grounds-based eviction claims.
Once elected, Labour re-established the ban regardless of the courts’ capacity.
Before ascension, the House of Lords tabled a host of amendments to the bill. The majority were rejected by housing minister Matthew Pennycook – however, a few small concessions were made.
He agreed to introduce a delegated power to enable the backdating of rent rises, following rulings by the tribunal of new higher rent amounts appealed by tenants.
The government acknowledges there is uncertainty over the volume of rent challenges that might arise and the delays this could cause in hearing them, but it said it wasn’t its intention to use the new power unless it was necessary to avoid lengthy delays.
What are the main changes in the Renters’ Rights Bill?
Eviction changes
Section 21 no-fault evictions have been abolished.
Now, landlords can only evict tenants under strict grounds laid out under Section 8, which include anti-social behaviour, rent arrears or if they intend to sell or move back into the property. If they do plan to sell up or move back in, they must give tenants four months’ notice so they have enough time to find a new home.
Where they are unable to sell, they must wait 12 months before they’re permitted to re-let the property.
Landlords under Ground 4a can reclaim house in multiple occupation (HMO) properties occupied by full-time students to prepare for the next cohort of undergraduates and postgraduates by giving four months’ notice.
Periodic tenancies
Periodic tenancies, or rolling contracts that don’t have an end date, will replace fixed-term tenancies. Existing assured shorthold tenancies (ASTs) will automatically convert to rolling contracts without the need to sign new documents. If there is no written agreement in place, landlords must provide one.
All landlords must issue information to tenants about the new rules within one month of them starting.
This is to give renters the freedom to move home when they want; for example, if they need to move for work or to stop them getting trapped in poor-quality accommodation.
Tenants can give two months’ notice to leave the property at any time but benefit from a 12-month period of protection from the start of their tenancy, which stops their landlord from evicting them to move back in or sell during this time.
Landlords can only end a tenancy if they plan to sell or move back in, or in cases of rent arrears.
Setting and collecting rent
Landlords can only up their rents once per year, and then this can only be to the market rate.
Tenants have the right to challenge this at the first-year tribunal if they think the increase is excessive.
Furthermore, large amounts of rent cannot be charged upfront before the tenancy begins – a practice often used when letting properties to international students or UK tenants with no credit history or a poor credit background.
Bidding wars will be banished to history now that it’s become illegal for landlords to accept offers higher than the rent advertised, which must be published on the listing.
Tenants in arrears
Landlords must wait longer before they can move to evict a tenant in arrears.
A tenant must have missed three months’ payments before they can be evicted – up from two before the law was changed. Additionally, the notice period that must be issued has increased from two to four weeks.
Raising standards
Private sector landlords are now subject to the Decent Homes Standard and Awaab’s Law, like those in the social housing sector, to make sure tenants’ homes are safe, good quality and good value.
Landlords will be required to register themselves and their properties on a new digital database to legally let out their home and demonstrate they are compliant. It’s likely that documents like gas safety certificates will need to be uploaded, but this has yet to be confirmed.
Failing to register will exempt them from using certain grounds of possession.
Local authorities will be given greater powers to crack down on rogue landlords who fail to comply with the new reforms. Civil penalties ranging from £7,000 up to £40,000 for a serious breach or repeated non-compliance could be slapped on those flouting rules. Some 15 new offences have been introduced that will see landlords issued civil penalties.
Rent repayment orders will be given more strength, with six new offences introduced that could trigger this action.
Tenants will be able to claim back up to two years of rent repayments for breaches made by their landlord.
Ombudsman to oversee fairness
Tenants will now be able to complain for free to a dedicated private sector landlord ombudsman that will provide a binding resolution on disputes.
Stamping out discrimination
The bill aims to end discrimination against tenants on benefits by making it illegal to enforce policies such as ‘no DSS permitted’ or ‘professionals only’ on rental adverts. Benefits can be considered when assessing a tenant’s affordability.
Landlords can no longer refuse tenants on the grounds they have children. However, landlords will still have the final say on who they let their property to.
Tenants will also have the right to request a pet, but landlords can insist that pet insurance is taken out to cover any damage that the pet may cause to their property.
However, the wording around the issue of pets is vague, with the bill stating that landlords cannot “unreasonably refuse” and that requests must be considered “fairly”.
What can we expect next?
Steve Reed, Housing Secretary, said on BBC 4’s Today Programme that he plans to publish a timetable of when events will take place as soon as possible.
Some parts of the act require secondary legislation before they are implemented; these include the introduction of a new landlord database and private rental sector ombudsman.
The proposed date for the full introduction of the Decent Homes Standard to the private rented sector is currently 2036, but the removal of the most dangerous hazards could come sooner.
Meanwhile, some of the new enforcement powers given to local authorities will take effect two months from now.
