The Renters’ Rights Bill represents the most significant reform to the private rented sector (PRS) since the Housing Act 1988. First introduced to Parliament on 11 September 2024, the Bill has far-reaching implications for landlords, tenants, and letting agents, aiming to improve standards and create a fairer, more transparent rental market.
Given its rapid progress through Parliament, the Bill is expected to receive Royal Assent by April 2025, with some provisions taking immediate effect while others such as the Decent Homes Standard may be introduced later, potentially in 2026.
This article explores what the Renters’ Rights Bill entails, how it will affect landlords, and why many are considering selling their rental properties in response to these upcoming changes.
Key Changes Under the Renters’ Rights Bill
1. Abolition of Section 21 Evictions (“No-Fault” Evictions)
Perhaps the most significant change is the abolition of Section 21, which currently allows landlords to end tenancies without providing a reason. Under the new system, tenancies can only be terminated by a tenant or if the landlord has a legally defined reason, such as rent arrears, anti-social behaviour, or the intention to sell the property.
Additionally, tenants will be protected from eviction for the first 12 months of their tenancy, provided they adhere to their tenancy agreement. If a landlord wishes to sell or move into the property after that period, they must provide at least four months’ notice.
2. Simplified Tenancy Structure
The Bill introduces a single system of periodic tenancies, replacing fixed-term contracts. This provides greater flexibility for tenants, who can give two months’ notice to leave at any time.
3. Regulation of Rent Increases and Bidding Wars
Landlords will be restricted to increasing rents no more than once a year, and any rise must be in line with market rates. The Bill also prohibits rental bidding wars, aiming to eliminate unfair competition for properties.
4. Deposit Reform: Lifetime Deposits
The introduction of a lifetime deposit system will reduce the financial burden on tenants when moving homes. Instead of raising a new deposit for each property, tenants will be able to transfer their existing deposit to the next property.
5. Tenant Protections: Pets, Benefits, and Families
The Bill seeks to combat discrimination by preventing landlords from refusing tenants solely on the grounds that they have children or receive benefits. It also introduces a new right for tenants to request pets in their homes. While landlords can still refuse on reasonable grounds, blanket bans will be prohibited. Landlords may request tenants to take out pet insurance to cover potential damage.
6. Mandatory Landlord Ombudsman
A new landlord ombudsman will be established to offer an impartial resolution service for disputes, avoiding costly court proceedings. Membership will be mandatory for all landlords, although those using a letting agent will already benefit from existing redress schemes.
7. Awaab’s Law
Following the tragic death of Awaab Ishak due to mould exposure, Awaab’s Law will now apply to private rentals. Landlords must address serious health hazards, such as damp and mould, within a set timeframe or face penalties.
8. Decent Homes Standard for Private Rentals
The Decent Homes Standard, long applied to social housing, will now extend to private rentals. This ensures properties meet minimum standards of safety, warmth, and decency. Local authorities will have the power to enforce these standards and take action against non-compliant landlords.
9. Digital Private Rented Sector Database
A new digital database will be introduced to improve transparency in the rental market.
- Tenants will gain access to essential details when starting new tenancies.
- Landlords will have clearer guidance on their legal responsibilities.
- Councils will be able to target enforcement efforts in areas with high levels of non-compliance.
How Are Landlords Responding?
The Renters’ Rights Bill has received mixed reactions from landlords. While some welcome the increased clarity and focus on raising standards, others are concerned about the potential impact on property management and profitability.
According to recent surveys, one in five landlords plans to reduce their property portfolio in 2025, with the Renters’ Rights Bill cited as the primary reason. The abolition of Section 21 and the introduction of stricter regulations have led many landlords to consider selling their rental properties before the new laws come into effect.
Industry experts have also highlighted the need for a more efficient court system to support the new framework, ensuring that disputes and evictions are handled in a timely manner. Without these improvements, there are concerns that landlords may face longer, more challenging processes when trying to regain possession of their properties.
Preparing for the Reforms
With the Renters’ Rights Bill expected to become law by summer 2025, landlords still have time to prepare:
- Review tenancy agreements to ensure they align with the anticipated reforms.
- Address property compliance issues, such as meeting the Decent Homes Standard and resolving hazards like damp and mould.
- Consider management adjustments for the abolition of fixed-term tenancies.
- Stay informed on the latest updates as the Bill progresses through Parliament.
Looking to Sell Your Rental Property?
If you’re a landlord considering selling your rental property due to the upcoming changes, we can help. Any House Wanted are specialist cash house buyers, we offer a quick, hassle-free solution, allowing you to sell your property without the stress of lengthy processes or additional costs.
Contact us today for a quick quote and take the first step towards a stress-free sale.