The Renter’s Rights Bill is set to bring significant changes to landlords and tenants alike, but landlords are arguably going to be impacted the most. From the abolition of Section 21 evictions, to the introduction of a single system of periodic tenancies, the Renter’s Rights Bill is set to create a fairer and more balanced system with better tenants rights. However, with the introduction of the Renter’s Rights Bill comes new rules for landlords, and it will reshape the way landlords manage their rental properties.
In this article, we will go through what the Renter’s Rights bill is, when it will become law, the difference between it and the Renter’s Reform Bill, and what the key changes and new rules for landlords are.
What is the Renter’s Rights bill?
The Renter’s Rights Bill is a significant piece of legislation aimed at transforming the experience of private renting, and ultimately improving tenants rights. Introduced to parliament on the 11th September 2024, it will affect landlords, tenants and letting agents. The bill will improve the current rental system for 11 million private renters as well as 2.3 million landlords in England. It allows those who rent to have greater security and stability, helping them to stay in their rental property for longer.
New rules for landlords: Key changes explained
Building upon previous proposals, this bill introduces several key changes designed to enhance tenants rights and clarify landlord responsibilities. As the bill is set to become law in a few months, landlords should know everything about it so they’re set up for success. The new rules for landlords include:
- Abolishing Section 21: Applying to both new and existing tenancies, landlords will no longer be able to serve “no fault” notices to regain the possession of their property.
- Abolishing fixed-term assured shorthold tenancies (ASTs): All tenancies will now become periodic, meaning that tenants will have greater flexibility to end their tenancy with appropriate notice.
- Limiting rent increases: The shift to periodic tenancies means Section 13 notices will be the only way landlords can raise rent, and this can only be done once a year.
- Banning rental bidding wars: This means that landlords and letting agents will no longer be able to accept offers that are above the advertised price.
- Expanded Section 8 possession grounds: Due to the abolition of Section 21, the government is adding and updating both mandatory and discretionary grounds.
- Introduce a landlord ombudsman: This will help resolve disputes between landlords and tenants.
- Prohibiting discrimination: Landlords can’t refuse tenants who are on benefits or who have children.
- Apply the decent homes standard: All landlords must make sure their rental properties meet the minimum quality standards.
- Create a private rented sector database: This will be designed to compile information about landlords and properties which will provide visibility on compliance.
When will the Renters’ Rights Bill become law?
The bill is expected to become law by the end of Spring 2025. The commencement of it will most likely be more than two months after this, meaning it’s expected to be a working reality between July-October 2025. The government is keen to push the bigger changes as soon as possible, such as Section 21 and the shift to periodic tenancies. Other parts of the bill may be staggered.
The difference between the Renter’s Rights Bill and the Renter’s Reform Bill?
The Renter’s Reform Bill was a government backed proposal, aimed at improving the private rental sector, looking to abolish Section 21 ‘no-fault’ evictions, introducing periodic tenancies, and improving tenants rights. However, it faced delays and was not fully enacted.
The Renter’s Rights Bill coming into effect this year will build on the Renter’s Reform Bill, while introducing stricter regulations, such as limiting rent increases and banning discrimination against tenants on benefits. While both the Renter’s Rights Bill and Renter’s Reform Bill seek to improve renting conditions in England, the 2025 Renter’s Rights Bill takes a more tenant focused approach, strengthening tenants rights.
How landlords can prepare for the Renter’s Rights Bill
These new rules for landlords will mean landlords will need to:
- Stay informed with updates on the Bill’s progress.
- Plan rent reviews more strategically and consider the annual limitation.
- Ensure rent increases comply with new regulations.
- Consider the potential for tribunal involvement if increases are challenged.
- Be prepared to justify proposed increases whilst referencing local market data.
- Review and revise your documentation such as tenancy agreements and templates for notices etc.
- Enhance property management practices.
- Financial planning which takes into account the upcoming changes.
- Ensure full legal compliance with upcoming obligations.
How Aspire to Move can help
The team here at Aspire to Move stay ahead of the latest legislation, including the 2025 Renter’s Rights Bill, ensuring we provide landlords with the best possible advice and support.
If you need guidance on the new rules for landlords or expert rental advice, we’re here to help. Become an Aspire landlord today or get in touch to find out more.
