The Renters' Rights Bill - What Landlords Need to Know
The Renters’ Rights Bill - What Landlords Need to Know
It’s expected that around April 2025, the Renters’ Rights Bill will pass Royal Assent in the UK, with the bill likely to come into effect between July - October 2025. The Bill aims to transform and improve the private rental sector. There are several key changes that landlords need to be aware of, with some of the upcoming changes to private renting having a bigger impact than others.
We’ve shared the top changes expected to come into play, and what this means for landlords.
Ban on “No-Fault” Evictions (Section 21)
When the Renters’ Rights Bill comes into force, it will abolish Section 21, meaning that landlords will not be able to evict tenants without a specified reason. The purpose of this change is to offer tenants a greater level of security in their homes. Landlords will need to provide a valid reason under Section 8 to regain possession, including:
- Tenant rent arrears
- Property damage
- The intention of the landlord to sell the property
Assured Shorthold Tenancies (ASTs) Abolished
All tenancies will become “periodic assured tenancies”. This means that the maximum rent period will be one month, and tenancies effectively become rolling agreements.
Whilst the changes are claimed to be to the benefit of tenants, there has been feedback that many tenants prefer the security of a 12 month Assured Shorthold Tenancy, for example.
New rental agreements formed after the Renters’ Rights Bill comes into effect will be “Section 4A assured tenancies”.
Restrictions on Rent Increases
Landlords will be able to increase rent only once each year, and will need to provide tenants with at least two months notice of a proposed rent increase.
Any increases must be in line with market rates, and tenants will be able to contest increases that they believe to be unfair, through the same First-tier Tribunal as currently, however, the practice where previously tenants could end up paying more rent than the landlord originally proposed will be removed.
Ban on Rent in Advance
Landlord’s will no longer be able to charge more than one month’s rent upfront. This change is intended to make renting more accessible for everyone.
Ban on Rental Bidding
The practice of bidding wars will no longer be permitted. Advertisements must clearly state the proposed rent and landlords will not be allowed to accept offers above the advertised rent. Both landlords and agents will be banned from encouraging or actively inviting bids on rental properties.
“Awaab’s Law” will be introduced
Awaab’s law will require landlords to address health and safety hazards, such as mold and damp, within a specific time frame. It covers 29 health and safety hazards.
Private Rented Sector Ombudsman to be Established
A new Ombudsman will be introduced to oversee the private rental sector, offering:
- Independent dispute resolution between landlords and tenants.
- Binding decisions to ensure compliance with rental regulations.
Landlords will pay the fees to the Ombudsman for membership, and it will be free of charge for tenants to us.
Mandatory Membership in Redress Schemes
All landlords will be required to join an approved redress scheme, providing tenants with a clear avenue for complaints and disputes, without needing to resort to legal proceedings.
Right to Request Pets
Landlords will be required to consider a tenant’s request to keep a pet in their home and will not be able to unreasonably refuse. Landlords will be able to require that tenants obtain pet insurance to cover potential property damage.
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