Renters’ Rights Bill – what do landlords need to know?

The Renters’ Rights Bill, which includes plans to ban Section 21 evictions, is set to bring about the biggest changes to tenancy laws in a generation.

The bill also contains proposed measures to limit rent increases, ban bidding wars, and improve rental property standards.

What is the Renters’ Rights Bill?
What’s included in the Renters’ Rights Bill?
Timeline – when could the Renters’ Rights Bill become law?
3 ways landlords can prepare for the Renters’ Rights Bill
How could rental reforms impact landlords?

What is the Renters’ Rights Bill?

The Renters’ Rights Bill is the result of the Labour government acting on its manifesto pledge to transform private renting.

The bill’s headline measures are to stop landlords from issuing Section 21 evictions and to end assured shorthold tenancies, making all tenancies periodic.

Many of the proposed new laws were also included in the Conservatives’ Renters’ Reform Bill, which was shelved shortly before the 2024 general election.

The new tenancy system will apply to new and existing tenancies at the same time. This will prevent a confusing two-tier system and allow tenants to benefit from immediate security, according to the government.

It’s important to note that these new laws will apply only to tenancies in England. There are different rules for Scotland, Wales, and Northern Ireland.

Read the full guide to the Renters’ Rights Bill on the government website.

What’s included in the Renters’ Rights Bill?

The bill includes a mix of proposed laws that either introduce new processes, ban existing practices, or change the way the market currently operates.

As well as revamping the structure of tenancies and evictions, the bill includes measures that aim to improve property standards and enforcement.

Here’s an overview of the 12 key measures:

Banning Section 21 evictions
Replacing fixed-term assured tenancies with periodic tenancies
Introducing a landlord ombudsman
Extending Awaab’s law to private rentals
Extending the Decent Homes Standard to private rentals
Limiting rent increases
Introducing a Private Rented Sector Database
Giving tenants the right to keep pets
Banning rental property bidding wars
Ending blanket bans on tenants on benefits or with children
Strengthening local authority enforcement
Strengthening Rent Repayment Orders

1. Banning Section 21 evictions

Removing Section 21 evictions from the Housing Act 1988 means tenancies will only be ended by a tenant or if a landlord has a valid reason, defined in law (through an updated Section 8 process).

Under the new system, when a tenant moves into a property they’ll be protected from eviction for 12 months (provided they don’t break their tenancy agreement). After that, if the landlord wants to sell or move into the property, they’ll need to give four months’ notice.

Simply Business research found that two thirds (66 per cent) of landlords think it will be harder to regain possession of a property without Section 21 evictions.

And although 71 per cent said they’d never used a Section 21 eviction, it’s clear that many landlords see it as a vital safety net.

A full list of the updated grounds for eviction is available on the government website.

2. Making all tenancies periodic

Currently, most tenancies are Assured Shorthold Tenancies (ASTs) which means it’s usually for a fixed term (such as 12 months) before becoming a periodic tenancy if the tenant stays beyond the fixed term.

The Renters’ Rights Bill pledges to make all tenancies periodic. As a result, tenancies will have no end date. Tenants will be able to end the tenancy by giving two months’ notice or the landlord will be able to end the tenancy by serving a Section 8 notice.

3. Introducing a landlord ombudsman

Landlords (including those who use a letting agent) will be required to join a new Private Rented Sector Landlord Ombudsman Service.

Tenants will be able to make complaints about their landlords to the ombudsman. The service will provide binding decisions on all cases that could require a landlord to pay compensation or make improvements to their property.

4. Extending Awaab’s Law to private rentals

Awaab’s Law was introduced in the social rented sector in 2023. As part of the Renters’ Rights Bill, it’ll be expanded to cover private rentals.

The law requires landlords to address hazards such as damp and mould within a specific timeframe. Tenants can take them to court if they don’t comply.

5. Extending the Decent Homes Standard to private rentals

Similar to Awaab’s Law, the Decent Homes Standard currently only applies to social housing but will be extended to private rentals as part of the Renters’ Rights Bill.

The Decent Homes Standard will set a minimum requirement for all rental properties, giving local authorities powers to take enforcement action against those who don’t comply.

6. Limiting rent increases

When the Renters’ Rights Bill becomes law, all rent increases will be made using a single process:

landlords will be able to increase rents once a year
the rent increase will have to be in line with market rates (the price that the property would be advertised for if it was empty)
rent rises will need to be communicated via a Section 13 notice, including a two month notice period

Tenants will be given the opportunity to challenge rent increases if they think they’re unreasonable and exceed the market rate.

Landlords will no longer be able to increase rents through rent review clauses, which are currently included in the majority of tenancy contracts.

7. Introducing a Private Rented Sector Database

Landlords will need to register themselves and their property details on a new Private Rented Sector Database.

The database will be designed to:

give landlords easy access to compliance information
provide tenants with more transparency before they rent a property
provide local councils with more information on rental properties

8. Giving tenants the right to keep pets

To encourage pet ownership in rental properties, landlords will not be able to unreasonably reject a pet request from a tenant. And tenants will be given the opportunity to challenge decisions they see as unreasonable.

Landlords that accept pets will be able to require tenants to get insurance that covers damage caused by pets.

Full guidance will be published before the Renters’ Rights Bill becomes law.

9. Banning rental property bidding wars

Landlords and letting agents will be required to publish an asking rent for a property. They’ll be banned from encouraging or asking for bids above the advertised price.

The government says this will level the playing field for tenants and crack down on the minority of landlords and agents who encourage rental bidding.

10. Ending blanket bans on tenants on benefits or with children

Discriminatory practices such as ‘no DSS’ rental adverts will be banned and the government says it will crack down on other unnamed ‘indirect practices’.

Landlords will still be encouraged to complete tenant referencing before accepting a tenant, with the ability to reject tenants due to affordability. However, they won’t be able to reject tenants for receiving benefits or having children.

11. Strengthening local authority enforcement

The government plans to underpin the reforms with an effective enforcement framework. Local councils will be given powers to request information from landlords, plus the right to enter residential properties during investigations.

Fines for non-compliance with rental reforms will be set at up to £7,000 for an initial or minor offence. For serious or persistent offending, landlords could be fined up to £40,000 or criminally prosecuted.

12. Strengthening Rent Repayment Orders

To increase enforcement and deter landlords from offending, the government plans to strengthen the rules on Rent Repayment Orders (RROs):

Rent Repayment Orders will apply to all new offences set out in the Renters’ Rights Bill
if landlords commit the same offence for a second time, they’ll be required to pay the maximum RRO amount
the maximum amount of rent a landlord can be ordered to repay will double from 12 to 24 months
RROs will apply to superior landlords (property owners) and company directors to cover rent-to-rent arrangements

Timeline – when could the Renters’ Rights Bill become law?

The Renters’ Rights Bill is 226 pages long but has so far enjoyed a quick journey through parliament.

The bill passed its first and second readings in the House of Commons by early October 2024.

The committee stage was completed by 5 November, with the report stage and third reading due for December 2024.

The bill will then move to the House of Lords, where it will go through the same stages.

It’s expected that the Renters’ Rights Bill will receive Royal Assent, which is when it formally becomes law, in spring 2025.

The government is planning to have the new rental rules in place by summer 2025.

3 ways landlords can prepare for the Renters’ Rights Bill

There will be a lot of change for landlords over the coming years, so preparation will be key.

Here are three things you can start doing now to get ahead of the game:

Familiarise yourself with the bill – the proposed changes to tenancy laws have been described as the biggest for a new generation. That’s why it’s so important that landlords take the time to read through the bill in detail to understand their new obligations
Review your tenancy agreement – one of the biggest changes will be the move from fixed term to periodic tenancies. Most landlords will need to make changes to their standard tenancy agreements to reflect the new rules. Speak to a tenancy law expert if you’re not sure of anything
Assess the standard of your property – the extension of the Decent Homes Standard and new rules on pets mean it’ll be crucial for landlords to make sure their property is up to scratch and think about any changes that could make it easier to comply with new laws

On top of this, landlords should keep up to date with the bill’s latest progress so they can get to grips with government guidance when it’s published, as well as start dates for the new system.

What could new tenancy laws mean for landlords and tenants?

The Renters’ Rights Bill is likely to have a significant impact on landlords and tenants.

The new laws could make tenants feel more secure and increase the appeal of renting, which could lead to longer tenancies and boost rental demand.

However, some landlords may be encouraged to sell which could exacerbate the lack of housing supply, causing rents to increase further.

Housing Secretary and Deputy Prime Minister Angela Rayner said the bill will ‘overhaul renting’ and ‘rebalance the relationship between tenant and landlord’.

“Most landlords act in a responsible way but a small number of unscrupulous ones are tarnishing the reputation of the whole sector by making the most of the housing crisis and forcing tenants into bidding wars,” she said.

Keep an eye on our Knowledge centre for regular updates on the Renters’ Rights Bill.

Do you have any concerns about the Renters’ Rights Bill? Let us know in the comments below.

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