30/06/2025

The Renters' Rights Bill could be in force within six months.

It's important that landlords are aware they need to be preparing for this now.

There isn't a fixed timescale, although the Bill is likely to become law this year, with October having been mooted as a possible date, but it could be earlier.

The Renters' Rights Bill is the biggest shake-up to the private rented sector (PRS) in the last 10 years. And that's saying something: it's been a busy decade.

The aim of this new legislation is one we can all agree with: clear and robust protection for the 11 million people living in the private rented sector.

The Bill addresses the insecurities faced by tenants by reforming the sector and the quality of homes in it, while cracking down on unscrupulous landlords.

So far, so good, but the devil is in the detail and many landlords are concerned about unintended consequences of the Bill, as yet more costs and work get heaped upon them.

What's in the Renters' Rights Bill?

The Renters' Rights Bill aims to overhaul the private rented sector, giving greater rights and protections to people renting their homes, while ensuring landlords operate fairly and transparently.

Here are the key measures:

Section 21 evictions banned: No-fault evictions will be abolished and landlords will have to use expanded Section 8 possession grounds to end a contract.

No more fixed-term tenancies: Fixed-term tenancies will be replaced by open-ended rolling agreements, which tenants can leave with two months' notice.

Decent Homes Standard: This standard, already in place for social housing, will extend to private rentals. It requires properties to be safe, warm, and free of serious hazards, potentially requiring landlords to invest in property upgrades.

Awaab's Law: This law, also in place in the social sector, enforces strict timelines for landlords to address serious hazards like mould and damp.

Rental bidding wars banned: Landlords and agents will have to advertise a rental price and can't accept higher bids. Rent increases will be limited to once a year, and tenants will be able to challenge the rise. Landlords will only be permitted to request one month's rent in advance along with a security deposit.

New landlord database and Ombudsman: Landlords will need to register on a national database, and disputes with tenants will be resolved through a new Ombudsman scheme.

Strengthened enforcement and penalties: Local councils will have greater powers to crack down on rogue landlords, including forcing those who commit certain offences to repay rent to their tenants.

What does this mean for landlords?

It's potentially more work and added cost for landlords, although there are some likely benefits involved.

Landlord benefits: Many of the measures could boost trust and satisfaction among tenants, leading to longer tenancies, fewer void periods and fewer rent arrears. Upgrading properties could also mean higher property values.

Admin: Landlords will need to spend time updating tenancy agreements, ensuring compliance with new legal requirements and possibly upgrading properties, as well as registering on the national database.

Tenancies: It will be harder to evict tenants and regain possession of a property. The court system is already overwhelmed and without significant improvements, long delays seem likely.

Impact on rents: If landlords can't increase rents or accept higher offers, they could be more likely to price their rents higher in the first place, pushing up costs for tenants.

Cost pressures: Higher quality properties are undoubtedly a good thing, but some landlords might decide to exit the market because of added costs, squeezed profit margins and more complexity.

Change is coming

There's no denying the Renters' Rights Bill introduces significant changes and challenges, in particular the removal of Section 21.

There's a risk of unintended consequences if landlords exit the market and rents rise, but the overall aim to protect tenants and boost quality in the PRS is something we all want.

Luckily, landlords are experts at overcoming regulatory hurdles. They've had to be in the last 10 years!

Get in touch with our friendly and knowledgeable team for more information.