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

The government has published a new Renters’ Rights Bill, which includes draft legislation to outlaw Section 21 evictions and limit rent increases.

The bill, which will apply to tenancies in England, also contains proposed measures to ban bidding wars and improve rental property standards.

Read on for more details about:

• the proposed ban on Section 21 evictions
• what’s included in the Renters’ Rights Bill
• the government’s plan to ‘overhaul renting’
• when the Renters’ Rights Bill could become law
• what the Renters’ Rights Bill means for landlords

Latest plans to ban Section 21 evictions revealed

The headline measure of the Labour government’s bill is a proposal to ban Section 21 evictions for new and existing tenancies.

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 (most likely through Section 8).

It’s been suggested that there’ll be no changes to the court system before this takes place. The Labour Party’s election manifesto said that Section 21 evictions would be banned ‘immediately’. And, on launching the new bill, Housing Secretary Angela Rayner said there can be no ‘dither and delay’”’.

What else is included in the Renters’ Rights Bill?

As well as ending Section 21 evictions, the bill includes a range of other measures. Many of the proposed new laws were also included in the Conservatives’ Renters’ Reform Bill, which was shelved shortly before the 2024 general election. 

Here’s what’s being proposed in the Renters’ Rights Bill:

• landlords won’t be able to impose blanket bans on letting to tenants with children or those on benefits
• there will be no more fixed-term assured tenancies, meaning all tenancies will be periodic
• a new landlord ombudsman for the private rented sector will be introduced
• Awaab’s Law and the Decent Homes Standard will be extended to the private rental sector
• landlords will only be able to increase rent once a year, in line with market rates, while mid-tenancy rent increases will be banned
• a Private Rented Sector Database will be created to help landlords understand their compliance obligations. It will also be used by tenants and local authorities 
• tenants will be given the right to keep a pet in their rental property

Meanwhile, in an attempt to stop bidding wars on rental properties, landlords and letting agents will be legally required to publish the asking rent of an available property. They’ll also be banned from encouraging or accepting bids above the asking price.

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

Government to ‘rebalance the relationship between tenant and landlord’

Angela Rayner said the bill will ‘overhaul renting’ and ‘rebalance the relationship between tenant and landlord’. 

“Renters have been let down for too long and too many are stuck in disgraceful conditions, powerless to act because of the threat of a retaliatory eviction hanging over them,” she said.

“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.”

Many of the rental reforms will be familiar to landlords. The intention to ban Section 21 evictions was first put forward by Theresa May’s government in 2019. 

The Conservatives’ Renters’ Reform Bill made it to the House of Lords but was abandoned before any changes could become law. 

When could the Renters’ Rights Bill become law?

There’s no official date on when rental laws could be updated. However, Housing Minister Matthew Pennycook told the BBC that he hopes the bill will make ‘very quick progress’ through the House of Commons.

He added that the government intends to have a new tenancy system in place during the first half of 2025 or by next summer.

It’s likely that some of the measures included in the bill, such as banning Section 21 evictions, could be introduced quicker than others. Some measures may require consultation or primary legislation, which means they could take longer to get through parliament.

After its first reading today, the bill will now start its journey through the House of Commons and House of Lords. It will then receive Royal Assent, which is when it formally passes into law.

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. 

It’s likely that some landlords may need to make improvements to their properties, while others may need to review their tenancy agreements to reflect new rules around evictions and pet ownership. 

Housing minister Matthew Pennycook has committed to engaging with landlord and tenant groups as the bill progresses to ensure everyone is ready for the changes.

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.

More guides for buy-to-let landlords

• New energy efficiency rules for rental properties
• Landlord responsibilities – a guide to property maintenance and repair
• Property viewing checklist: a guide for landlords
• UK house price predictions for next 5 years: a landlord’s guide

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