The Renters’ Rights Bill is a piece of upcoming legislation designed to deliver reforms to the Private Rented Sector (PRS). Its primary goal is to give tenants more security to stay in their homes and more freedom to leave substandard properties.
For responsible landlords with quality properties, the Bill will have minimal significant impact, as long as they are supported by a capable experienced agent who has access to reliable tenants who pay rent on time and treat the property with respect.
So, what does the Renters’ Rights Bill mean for landlords? We answer some of the most frequently asked questions from our clients.
The Bill will:
- Abolish fixed-term assured shorthold tenancies (ASTs) – as a result of this, all tenancies will become periodic
- Limit rent increases – Section 13 notices will be the only way for landlords to raise the rent and limited to once per year
- Abolish Section 21 evictions – landlords will no longer be able to serve “no-fault” notices to regain possession of their properties
- Expanded Section 8 possession grounds – the Government is adding and updating both mandatory and discretionary grounds due to the abolition of Section 21
- Ban rental bidding wars – landlords and agents can’t accept offers above the advertised price
- Introduce a landlord ombudsman – this will help resolve disputes between landlords and tenants impartially
- Create a private rented sector database – designed to compile information about landlords and properties and provide visibility on compliance
- Apply the Decent Homes Standard – all rental properties must meet minimum quality standards
- Prohibit discrimination – landlords can’t refuse tenants on benefits or with children
When will the Bill become Law?
he Renters’ Rights Bill is expected to pass Royal Assent and become law after Easter 2025. The commencement date of the Bill will likely be more than two months after this, meaning it is expected to be a working reality between July-October 2025.
Rent increases and rental bidding:
The bill introduces stricter regulations on rent increases. Landlords will only be permitted to raise rents once a year, and any increase must align with market rates. This is designed to provide tenants with more financial stability and curb sudden, unfair hikes.
If the tenant agrees to the increase, it will take effect from the next rent due date after the anniversary.
If the tenant believes the proposed increase is above the market rate, they can challenge it by applying to the First Tier Tribunal, but this must be done before the proposed new rent start date.
In addition, rental bidding wars will be prohibited. Landlords and agents must publish a clear asking rent and will no longer be allowed to accept offers above this price. This change aims to prevent inflated rents in competitive markets, offering tenants fairer access to properties.
What security will a tenant have?
Tenants will have greater flexibility to leave a property without being locked into a long-term lease. For the first 12 months of any new tenancy, landlords will be prohibited from moving back into their property or attempting to sell it, unless the property is sold to another landlord who agrees to take over the tenancy. This creates a 12-month protected period for tenants, though they can still serve notice to end the tenancy during this time. Tenants must provide two months’ notice to leave, and the notice must align with the rent payment date.
Will this affect both new and existing tenancies?
As the Bill stands, the new legislation for both new and existing tenancies is scheduled to be implemented on the same day, with no provisions for a phased transition. However, it is expected that there will be a grace period before enforcement to give landlords and agents time to adjust to the new tenancy rules.
In other words, a three-year tenancy signed in February 2025 would instantly become periodic if the Renters’ Rights Bill was passed in April 2025, replacing the fixed term.
How will I be able to regain possession of my property?
Landlords will no longer be able to end tenancies without providing a valid, legally defined reason, such as rent arrears, anti-social behaviour, or a desire to sell the property.The new legislation will abolish section 21 notices (commonly referred to as no-fault evictions) to offer greater security for tenants.
Instead, landlords will be required to use a section 8 notice, specifying one of the allowed grounds for possession.
What happens if landlords or their agents breach the new legislation?
Failure to comply will result in fines, with increased penalties and stronger enforcement powers for local authorities. Fines can reach up to £7,000 for minor or first-time breaches and up to £40,000 for repeat violations.
How Berkeley & Woods have you covered:
- Experienced and knowledgeable in the rental market: we can use current and recent comparables to collate a report to show current market values to justify rent increases and serve appropriate Section 13 notices to tenants
- Referencing: Our comprehensive tenant referencing checks offer our clients the assurance you need to select tenants who are not only trustworthy but also financially stable and likely to care for your property responsibly.
- Decent Homes Standards: Whilst this isn’t an issue for most responsible Landlords in PCL, we are up to date on legislation and can advise our clients where needed
- Landlord compliance: We can help ensure our clients are informed how to register on the landlord portal.
- Pets: When referencing tenants, we also get a pet reference from their previous landlord, which helps mitigate the risk. However, if further protection is needed, we will set our clients up with a Pet Damage Policy to ensure you are covered.
- Guarantors: Our referencing service offers a Guarantor option to tenants that need the extra support to secure their tenancy.