Renters’ Rights Bill is coming!

What this means if you are a landlord

Although not yet finalised, The Renters’ Rights Bill is expected to pass into law this year.

Intended to provide tenants with greater protection, it will end Assured Shorthold Tenancies, which is the most common type of agreement when renting to private tenants.

You can read more about the Bill on the Government website here

FAQ

Under the new legislation, landlords and tenants will no longer agree fixed tenancy periods. Known as “assured periodic tenancies”, these tenancies will run from month to month instead until the tenant serves notice, or the landlord wants to regain possession of the property by meeting one of the grounds that will enable this.

Landlords will not be allowed to move back into their property or attempt to sell it during the first 12 months of any new tenancy unless selling to a landlord who will take over the tenancy. This will give tenants a protected period for 12 months. If the tenant, however, wishes to leave the property during this period, they can do so as long as they give two months’ notice to terminate, and it must be in line with the rent payment date.

Currently as the Bill is written, the implementation of the new legislation is set to take place on the same day for new and existing tenancies, and does not allow for any phasing in or out. It is, however, our understanding that before the legislation is enforced, there will be an adjustment period provided to allow landlords and agents time to prepare for the new tenancy rules.

Part of the new Bill is to provide tenants with more security. The new legislation will therefore abolish Section 21 notices, or “no-fault evictions”. Instead, landlords must use a Section 8 notice, and this will have to cite one of the specific grounds for possession, for example if the landlord is looking to move back into the property, or they want to sell it. Other grounds to use a Section 8 notice could be rental arrears or antisocial behaviour.

Yes, a landlord can still propose an annual rent increase, and this would be done by serving a Section 13 notice. Any rent increase proposed must be in line with local market rents and, if required, evidence of such rents provided. If the tenant is in agreement with the proposed increase, the increase will take effect from the next rent due date after the anniversary. If a tenant believes the rent increase is unfair and above the market rate, they can dispute it by applying to the First Tier Tribunal. However, they must do this before the start date of the proposed new rent.

Landlords and agents will not be allowed to encourage or accept bids above the stated price, and will be required to publish an asking rent for the property.

Once the Renters Rights’ Bill has been enacted, the Tenant Fees Act 2019 will be amended prohibiting landlords or letting agents from requiring or accepting any payment of rent in advance of the tenancy being entered into. A landlord will only be able to require up to one month’s rent (or 28 days’ rent for tenancies with rental periods of less than one month) once a tenancy agreement has been signed and before commencement.

It is imperative that the new legislation is adhered to as non-compliance will be met with fines. These fines are being increased, and local authority enforcement powers will be strengthened. Currently, fines can be up to £7,000 for minor or initial non-compliance and up to £40,000 for repeat offences so the penalties will be significant.

The Government will introduce a new Private Rented Sector Landlord Ombudsman Service, which will be mandatory for private landlords to join, including those who use a managing agent. The new Ombudsman will provide tenants with the tools to challenge their landlord without the need to go to court and the same access to redress as is the case in other essential services and markets.

Please do not worry, you are in expert hands and, as our client, you can be confident that we will be prepared for all the changes. We do not believe there is any reason why tenants will make any changes to how they currently rent, and we do not believe the new rules will impact the length of time tenants like to stay in a property unless they are moving on or experiencing any difficulties.

This is our understanding of the Bill as it’s written currently. As with new parliamentary Bills, there may be further amendments as it works its way through the legal process.

If you are unsure how the upcoming changes will affect you, contact one of our team or seek independent professional advice.

**Information correct at time of publishing – 22^nd April 2025**

Disclaimer: This is not legal advice and should not be relied on as such. We recommend seeking legal advice from a solicitor should you wish to rely on it in Court.

Renters' Rights Bill