The Transformative Renters’ Rights Bill: Landlord and Tenant Obligations and Rights

WHAT YOU WILL LEARN

1. 10 Key Changes being implemented by the Renters’ Rights Bill.

2. Where the Renters’ Rights Bill is in Parliament.

3. What Landlords should be doing now.

INTRODUCTION

The Renter’s Rights Bill is a Government Bill to make provision changing the law relating to rented homes, including provision abolishing fixed term assured tenancies and assured shorthold tenancies. New obligations will be imposed on landlords when renting homes and providing temporary accommodation. The aim of the Bill is to improve the current private renting system for landlords and renters, and crucially to provide renters with greater security and stability. This article will cover the key changes being implemented by the Renters’ Rights Bill, and when we can expect the Bill to become law.

10 KEY CHANGES BEING IMPLEMENTED

1. The Bill will abolish fixed term assured tenancies and assured shorthold tenancies. All tenancies will instead be periodic (rolling) tenancies from the outset.

2. Landlords can currently end tenancies by using a no-fault process known as a section 21 notice. The Bill will abolish section 21 no-fault evictions.

3. Tenants will have to give 2 months’ notice to the landlord to end the tenancy. Landlords will have to give tenants 4 months’ notice to end the tenancy and will not be able to evict a tenant or sell the property until the tenant has occupied the property for at least 12 months. The day the tenancy ends must fall at the end of a rent period (for example, on the last day of a month if rent is paid monthly).

4. The mandatory threshold for eviction on the basis of rent arrears is being increased from 2 to 3 months’ arrears, and the notice period is being increased from 2 to 4 weeks.

5. A Private Rented Sector Database will be created to help landlords understand their legal obligations and demonstrate compliance, and to provide tenants with information to make informed decisions when entering into tenancy agreements.

6. A new Private Rented Sector Landlord Ombudsman will be introduced that will provide quick, fair, impartial and binding resolutions for tenants’ complaints about their landlords.

7. Landlords will be prevented from gaining possession if they have not properly protected a tenant’s deposit or registered their property on the private rented sector database, unless eviction is in relation to antisocial behaviour grounds for possession. Landlords can rectify non-compliance, so they are not prevented from regaining possession indefinitely.

8. Rent review clauses will no longer be permitted, and landlords will only be able to increase rents once per year to the market rate by serving a section 13 notice, setting out the new rent and giving at least 2 months’ notice of it taking effect. Tenants can challenge this at the First-tier Tribunal if they believe the proposed rent exceeds market rate. The Tribunal can no longer increase rent beyond what the landlord initially proposed.

9. Landlords and agents will be prohibited from asking for or accepting offers from prospective tenants which are above the advertised rent. It will be illegal to accept offers made above this rate.

10. Tenants will be given strengthened rights to request a pet in the property. Landlords must consider such requests and cannot unreasonably refuse them. Landlords can require pet insurance to cover any potential damage to their property.

WHERE THE BILL IS IN PARLIAMENT

The Bill has passed all stages in the House of Commons and House of Lords and is now in the final stages of passage. The Bill is currently undergoing consideration of final amendments. Once this stage is complete and Royal Assent is given, the Bill will become an Act of Parliament. The Bill is expected to become law in late 2025 or early 2026.

WHAT LANDLORDS SHOULD BE DOING NOW

Whilst the 10 key changes highlighted above offer a useful summary of the Bill and highlight key transformations, this is a non-exhaustive list, and both landlords and tenants should gain a comprehensive understanding of their obligations and rights under the Bill. The government’s guide to the Renters’ Rights Bill is a useful tool that can help navigate these substantial changes, and can be found at the following link: https://www.gov.uk/government/publications/guide-to-the-renters-rights-bill/guide-to-the-renters-rights-bill. Landlords must familiarise themselves with the new tenancy system and ensure they are compliant with this transformative regulation.

Should you require any further assistance on any of the topics mentioned in this article, please reach out to us at [email protected] or on 020 7952 1723.