As a landlord, staying informed about legislative changes is crucial to ensure compliance and maintain a positive relationship with your tenants. The Renters' Rights Bill, set to become law in October 2025, introduces significant reforms to the private rented sector. Here's what you need to know:
Abolition of Section 21 Evictions
One of the most notable changes is the abolition of Section 21 'no-fault' evictions. This means landlords will no longer be able to evict tenants without providing a valid reason. Instead, Section 8 will become the primary method for eviction, with updated and expanded grounds for possession. For instance, landlords can now evict tenants if they wish to sell the property, provided they give four months' notice and the tenants have lived in the property for at least 12 months.
Transition to Periodic Tenancies
All fixed-term assured shorthold tenancies (ASTs) will convert to periodic tenancies overnight once the bill becomes law. This change offers tenants greater flexibility, allowing them to give two months' notice to end the tenancy at any time and for any reason. While this may seem daunting, it's unlikely that tenants will move out immediately due to the associated time and cost of relocating.
Rent Increases Limited to Once a Year
The Renters' Rights Bill also limits rent increases to once a year. Serving a Section 13 notice will be the only way to raise the rent, as rent review clauses, renewals, and written agreements will no longer be applicable.
Enhanced Tenant Protections
The bill introduces stronger protections against backdoor evictions, ensuring tenants can appeal excessive above-market rents designed to force them out. Landlords can still increase rents to market price, but an independent tribunal will make a judgment if needed.
Private Rented Sector Landlord Ombudsman
A new Private Rented Sector Landlord Ombudsman will provide quick, fair, impartial, and binding resolution for tenants' complaints about their landlord. This ombudsman will also offer landlord-initiated mediation, enabling disputes to be resolved before escalating to court.
Decent Homes Standard established
Private rental homes need to meet minimum standards. Landlords who fall below these standards can be fined up to £7,000 by local councils and may face prosecution.
More freedom to have pets
Tenants will have more freedom to request a pet. However, landlords can require a tenant to have some form of pet insurance to protect against pet damage. The landlord could also take out this policy and charge the cost back to the tenant (the Tenant Fees Act 2019 will be amended to allow this).
Private Rented Sector Database and Landlord Ombudsman set up
A new digital database will provide transparency on landlord compliance. Every property must be registered on the database and the database will need to be kept up to date with compliance documents such as the EICR, Gas Safety Certificate and EPC.
The landlord ombudsman scheme will provide a fair and resolution service to settle disputes without the need for court involvement. Every landlord must be registered with the scheme.
Tenant Discrimination Banned
Landlords can’t refuse tenants just because they have children or are receiving benefits.
Key Takeaways for Landlords
While the Renters' Rights Bill brings significant changes, it's essential to understand that these reforms aim to create a fairer and more secure rental market for both landlords and tenants. By staying informed and adapting to these changes, landlords can continue to provide quality housing and maintain positive relationships with their tenants. At Robert Williams will be taking every care to look after our client's best interests and to keep their properties fully compliant.
For more detailed information, you can refer to the official guide on the Renters' Rights Bill on the GOV.UK website.
