The Renters’ Rights Bill has passed its third reading in the House of Commons and moved to the House of Lords on 4th February for its second reading. As the bill progresses it will undergo further scrutiny in the Committee stage. If approved, it is expected that the bill will become law by summer 2025.
The bill will transform tenancy agreements, landlord obligations, and tenant rights. It is therefore important for landlords and tenants to stay updated and seek legal advice when required to understand how the reforms will impact them.
Key Proposed Changes
1. Abolition of Section 21 Evictions
Landlords will no longer be able to evict their tenants using the section 21 ‘no fault’ eviction. Landlords will still be able to evict tenants with four months’ notice in some circumstances, such as:
If the landlord wishes to sell the property
If the landlord or their close family member intends to move into the property
These grounds cannot be used within the first 12 months of a new tenancy, and landlords must provide at least four months’ notice.
2. Introduction of Periodic Tenancies
The bill proposes a single system of periodic tenancies, allowing tenants to give two months’ notice to leave at any time.
3. Stronger grounds for evictions
Where a tenant is at fault, for example where a tenant commits antisocial behaviour, is damaging the property, or falls into significant arrears the landlord can give notice using the relevant ground/s at any point during the tenancy.
4. Enhanced Property Standards
Under Awaab’s Law, landlords must address serious health hazards (such as damp and mould) within a set timeframe to avoid penalties. Additionally, the Decent Homes Standard – previously applied only to social housing – will now extend to private rentals. This ensures that properties meet the minimum standards of safety, warmth, and state of repair.
5. Strengthened Tenant Protections
Anti-discrimination measures: Landlords will no longer be able to refuse tenants solely because they receive benefits or have children.
Right to keep pets: Landlords cannot unreasonably refuse a tenant’s request for a pet. However, they may require tenants to obtain pet insurance to cover potential property damage.
6. Deposit Reform
A single lifetime deposit system will be introduced, removing the need for tenants to raise a new deposit every time they move home.
7. Regulations on Rent Increases and Bidding Wars
The bill introduces regulations on rent increases. Landlords will only be able to raise rents once a year and the increase must align with market rates. Additionally, rental bidding wars will be prohibited.
8. Prohibition of Upfront Rental Payments
In a move to alleviate financial burdens on renters, the bill bans landlords from demanding multiple months' rent upfront. This practice has been criticised for excluding low-income tenants and exacerbating housing inequality.
Research indicates that nearly 60% of renters have faced such demands, preventing over 800,000 individuals from securing housing in the past five years.
9. New Private Rented Sector Ombudsman
Landlords will have to pay a mandatory fee to fund a new private rented sector Ombudsman, which will deal with disputes between landlords and tenants.
How to Prepare
Landlords should take proactive steps to ensure compliance by:
Staying up to date with legislative changes.
Reviewing tenancy agreements to reflect the new legal requirements.
Ensuring their properties meet the Decent Homes Standard.
If you are a landlord or tenant and wish to discuss the forthcoming changes or any issues concerning a private rental, please call our litigation team for a consultation and we will be happy to advise you.
Contact us on 01208 812415 or info@macmillans-solicitors.co.uk or complete this questionnaire for further advice and assistance.
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