Having been drafted, revised and debated across two Parliaments, the Renters' Rights Bill will be brought back to the House of Commons on September 8 for its final stage.
Referred to as the ‘ping pong stage’, it sees the Lords and the Commons debate the Bill for any final amendments. If as expected, this will pass into law the same month, with implementation likely to follow within 6-12 months.
While widely reported in the media, often alongside amendments and misconception, understanding the legislation’s specifics and its impact on your portfolio is essential for making informed, strategic decisions that protect the long-term health of your investments.
The Bill seeks to introduce a clearer, more streamlined residential tenancy framework. It preserves landlords’ control over key areas, including rent reviews and the ability to regain possession for sale or re-occupation, while also claiming to enhance security for tenants.
Here, we explore the key legislative changes and what they mean for landlords.
Abolition of s.21 no fault evictions
Arguably the most prominent change in the Renters Rights Bill is the end of the existing Section 21 notice.
The familiar notice has acted as the primary route for landlords to obtain vacant possession of a property through asking a tenant to leave in a set time frame on a statutory or periodic tenancy (usually two months on a standard monthly tenancy), and without reason having to be legally given.
Through abolishing the s.21 evictions, landlords must now end tenancies in specific circumstances set out in law, including where the tenant is at fault or if the landlord needs to sell. All the usual requirements for needing vacant possession are accounted for under the new guidelines.
Tenants will also have a 12-month protected period at the start of their tenancy, during which landlords cannot evict them to move in or sell the property. This shouldn’t adversely affect things given most are accustomed to offering initial 12month fixed terms under current regulations, but landlords should be aware that four months’ notice will then be required, giving tenants more time to secure a new home.
Under other sections of the Bill, there will be various grounds to regain possession through a Section 8 notice, but only where there is a genuine need – most landlords aware though that notices are only issued in these scenarios.
A move to periodic tenancies
The Bill will bring an end to the current Assured Shorthold Tenancy (AST) agreements most people are familiar with.
All new tenancies will operate on a periodic basis from the start, which differ from fixed-term ASTs as they don’t have a specified end date.
The bill’s intent is that tenants will benefit from greater security, as their tenancy will continue unless the landlord seeks possession under one of the valid Section 8 grounds.
From a landlord’s perspective, this does open up the prospect of tenants vacating early in the tenancy. Most are aware though that most tenancies will run as normal due to a shortage in housing stock, and tenants fully aware of high moving costs, and indeed often desiring long-term stability, so the prospect of this occurring may be minimal.
In fact the new legislation also increases tenant notice periods to two months allowing owners to plan better, and minimise void periods.
New possession grounds under s.8 for any tenancy breach, or requirement to re-occupy / sell
Although tenants gain greater security with the removal of ‘no-fault’ evictions, landlords do still retain the ability to manage their investments in an ever-changing market.
Landlords have generally only used s.21 as a possession mechanism due to it being the simplest legal process, not because there has been ‘no fault’, or requirement.
The reform of Section 8 (s.8) is the way landlords will regain possession of their rental properties when there is a genuine reason, including rent arrears, anti-social behaviour, or any other breach of tenancy.
For rent arrears, the Bill has increased both the threshold for eviction and the notice period by a combined six weeks. The eviction threshold has risen from two to three months, whilst landlords must give four weeks’ notice prior to an eviction (up from two weeks).
Landlords can still obtain vacant possession if they intend to sell the property or occupy it themselves. In this circumstance changes are also being introduced around re-letting a property if it cannot be sold. Landlords must wait six months before the property can be put back on the rental market, which has been proposed to be reduced from 12 months following an amendment to the Bill. Investors therefore need to plan with certainty if they intend to sell.
All annual rent reviews to fall under statutory s.13 notice procedure
Landlords will be continue to be permitted to raise rent once per year, ensuring their investments can track market levels. With stock levels in the private rented sector still low, long term growth and returns should remain.
To implement this change, landlords must serve a Section 13 notice, clearly stating the revised rent and allowing at least two months’ notice (increased from the previous one month) before it takes effect. The increase in notice period allows tenants additional time to financially plan for any potential rental rises. As before, they also maintain the existing right to challenge any rent increases through a First-tier Tribunal.
Ability to again re-take higher pet deposits
The Bill will allow landlords to request an additional three weeks’ deposit from tenants with pets, on top of the previous five-week cap which was in place. This means pet owners could end up paying a total of eight weeks’ deposit, in addition to the first month’s rent.
Although this may come with an increased deposit payment, the change is seen to be favourable to tenants who have pets.
Previously, they may have required specialist insurance to cover any potential damage caused by the pet, which could come at a substantive annual cost, meaning opting for an initial higher deposit payment is a preferred financial option, given it is refundable at tenancy end subject to satisfactory condition.
Landlords may still have to decline pets; where other legislation demands it, or where there is a safety concern - for example, having pets may breach a leasehold agreement on the landlord’s property, some mortgage lenders may have a ‘no pets’ stipulation, or a neighbouring tenant may have a severe allergy. As a default, pets should not be refused.
Other key changes:
Consolidation to a single landlord/agent Ombudsman
The current requirement for agents to belong to a mandatory Ombudsman scheme will now also apply to landlords. This aims to create a fairer sector where private landlords and those using regulated agents follow the same code of conduct. Timescales for implementation are not yet known, but it will take time to put the necessary infrastructure in place. Streamlining to a single Ombudsman will further reduce confusion in the market, ensuring that tenants and landlords alike know exactly where to turn if regulations are breached – and banning rogue landlords who operate outside of the law.
Transparent landlord register
The Bill will establish a new Private Rented Sector Database. All landlords with assured or regulated tenancies will be legally required to register both themselves and their properties. Letting or marketing a property without registration or the required information may result in penalties.
The database will serve as a central hub, offering landlords easy access to guidance and updates through a single platform. It will help them understand their obligations, demonstrate compliance and stay informed about any changes to requirements.
Introduction of Awaab's Law & The Decent Homes Standard
The Renters’ Rights Bill now seeks to extend Awaab’s Law to privately rented homes.
This law was first introduced for social housing under the Social Housing (Regulation) Act 2023. It followed the tragic and preventable death of two-year-old Awaab Ishak, caused by prolonged exposure to mould in his social rented home.
Under Awaab’s Law, renters in England have the right to challenge unsafe living conditions and require landlords to take prompt action to ensure properties are kept safe. Under the Bill, new obligations may be introduced requiring private landlords to rectify hazards such as damp and mould within a set timeframe. Failure to comply could enable tenants to pursue enforcement action through the courts.
In essence, the Decent Homes Standard (DHS) seeks to extend the compliance requirements of public sector rental accommodation to the private rented sector, ensuring that tenants benefit from homes that are both safe and decent. For example, mains integrated smoke alarms are currently a legal requirement in public sector housing but not in the private sector. Under the DHS, the same safety standards would apply across both.
Current legislation – Homes (Fitness for Human Habitation) Act 2018 - largely mirrors proposals under the DHS and as such many will see this as a re-branding of the regulation, as opposed to a significant change, but with additional safety aspects incorporated.
However, this measure is not expected to be introduced under the Bill until as late as 2035.
Ending rent in advance
The Renters’ Rights Bill will end the practice of landlords taking large amounts of rent in advance from tenants.
A landlord can only request up to one month’s rent (or 28 days’ rent for tenancies with rental periods shorter than a month) once a tenancy agreement is signed but before the tenancy begins.
Landlords have sometimes been caught out by taking advance payments as it can affect deemed notice periods in the eyes of the courts. This change should again simplify the process.
Tenants will see the legislation as a two edged sword. On the positive side they will have equal access to available properties where they may have previously been outbid by an applicant offering a larger upfront sum, but on the other hand some tenants with say, poor credit history, may have preferred paying an upfront sum as a way of offering security to the landlord.
Support, advice and guidance from an expert team
At WS Residential, we support serious investors in identifying, acquiring, managing, and growing their portfolios through data-driven insights, regional expertise and a highly personalised service.
If you are a landlord and wish to speak with us about how the proposed Bill can affect your property or portfolio, then please get in touch via our contact us page.
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