Renters’ Rights Bill explained: What does it mean for landlords and tenants?

The Renters’ Rights Bill was introduced to the UK Parliament with its first reading in the House of Commons on 11^th of September 2024. As of 15^th of January 2025, the Bill has now completed its passage through the House of Commons and had its first reading in the House of Lords, with the second reading on the 4^th of February 2025. I have put together this important update to help you understand the main points currently set out in the Bill.

Once the Bill has had its third reading in the Lords, if there are any amendments from the Lords the Bill will be sent to the Commons for agreement, to ensure that both Houses approve the contents. So, there could be further changes before it receives Royal Assent. It's also worth noting that all of this applies only to Assured Shorthold Tenancies.

So, what’s in the Bill?

I have updated the following to include amendments which have been made to the Bill so far.

1. The end of Assured Shorthold Tenancies
2. Section 21 to be abolished as soon as the Bill comes in; it will be replaced with section 8, which will allow landlords to gain possession of their property using prescribed grounds only.
3. The prescribed grounds for possession will be updated to include mandatory grounds if a landlord wants to sell or move back in; in these cases, landlords will be required to give 4 months’ notice, and such notice cannot expire earlier than 12 months from the start date of the tenancy. The mandatory and discretionary grounds will also be updated for a tenant who is in rent arrears, involved in anti-social behaviour or breaches the terms of their tenancy agreement.
4. The end of fixed term tenancies; tenancies will be periodic from the start of the tenancy.
5. Rent periods will be limited to monthly or less, and rent will only be payable on the due date, unless the tenant wishes to pay sooner.
6. Rent increases will be restricted to once a year and by way of a formal Section 13 notice only, with tenants having the ability to challenge a rent increase through the First Tier Tribunal.
7. Tenants will be able to serve 2 months’ notice (or less if agreed otherwise) in writing to end their tenancy from the start of their tenancy, and common law suggests a tenant’s notice should expire at the end of a rental period. For example, if the tenant’s notice period is two months, and the rent due date is 1st of the month and the tenant serves notice on 15th June, the notice would be to 31 August. If one tenant gives notice to leave, they are binding all tenants to that notice.
8. Tenants will have the right to request a pet, and a landlord will not be able to unreasonably refuse such a request unless the superior landlord doesn’t allow pets.
9. Agreed rent cannot be higher than the advertised rent and bidding will not be allowed above the advertised rent.
10. Landlords cannot discriminate against those who receive benefits or those with children living with them or visiting.

The details of the following changes were set out in secondary legislation, meaning that some or all of these changes will not initially be rolled out.

1. Landlords will have to sign up to a Landlord Redress Scheme, with landlords required to sign up before the property is marketed. This will allow tenants to seek redress against landlords and is expected to be cheaper and quicker than going through the court system.
2. Landlords will need to sign up to a PRS database, registering themselves and their property before the property is marketed.
3. All tenants must be provided with a written tenancy agreement.
4. Awaab’s Law will apply to the Private Rented Sector, outlining set times to investigate and repair certain issues.
5. Decent Homes Standard will also apply to the Private Rented Sector to ensure minimum acceptable property standards.

When are these changes coming in?

The date for these will be dependent on when Royal Assent is received. It is rumoured to be in Summer 2025, except where secondary legislation will be required. However, it is clear now that this will probably not happen in this time period.

What will enforcement look like?

Local authorities’ enforcement powers are to be strengthened and extended, with civil penalties being increased up to £7,000 for initial or minor non-compliance and up to £40,000 for repeat offences.  Rent Repayment Orders could be demanded on some of the new offences, with penalties being increased from 12 to 24 months’ rent; superior landlords and company directors could now also be liable.

The government have produced a set of guidance alongside the Bill, which can be found here.

How can I support you?

As an independent agent with more than 15 years’ experience, a high percentage of my new tenancies are agreed on non-ASTs, due to my excellent relationships with Relocation Agents, so much of the above won’t apply.

Over the years, my tenants have stayed for between three and five years, starting off with tenancies that are consistently agreed on a minimum 12-month basis. Unlike high street agents who may focus more on their fee than their client, I am transparent with my service and aim to forge the best relationship between my landlords and tenants; ultimately, if all parties are happy, there should be less issues.

If you choose me to manage your property, you will have an expert responding to any property-related issues and access to my panel of contractors (who I use on my own properties). This is why, as my client, you can rest assured that your asset is in the best possible hands.