Renters' Rights Bill: 12 Key Changes

March, 2025

 

Navigating the Renters' Rights Bill: 12 Key Changes for Landlords in England

The landscape of private renting in England is on the brink of transformation with the introduction of the proposed Renters' Rights Bill. This comprehensive legislation aims to overhaul how landlords manage, market, and let their properties, affecting every stage of the landlord lifecycle. From property registration to tenant rights during a tenancy, several changes will empower tenants and enhance standards within the private rented sector. Here’s a detailed breakdown of the 12 key changes landlords need to be aware of:

Before Letting: New Registration and Redress Requirements

1. Mandatory Landlord Registration

One of the foundational changes in the Renters' Rights Bill is the establishment of a national digital Private Rented Sector Database. All landlords will be legally required to register, providing key details about themselves and their rental properties. This centralised database is designed to promote transparency for tenants and ensure that local authorities can effectively monitor landlord compliance. It aims to create a safer and more accountable rental environment.

2. Compulsory Ombudsman Membership

A significant step towards tenant protection is the creation of a new Private Rented Sector Landlord Ombudsman. It will be mandatory for all private landlords with assured or regulated tenancies to join this body. The Ombudsman will provide a streamlined process for tenants to lodge complaints and seek resolutions, while also offering guidance and support for landlords—helping to foster healthier landlord-tenant relationships.

Preparing the Property: Enhanced Standards

3. Extension of the Decent Homes Standard

The Decent Homes Standard, previously limited to social housing, will now extend to the private rented sector, requiring landlords to ensure their properties meet essential health and safety standards. This builds upon existing obligations under the Homes (Fitness for Human Habitation) Act 2018, which mandates that properties must be safe and fit for human occupation.

Marketing and Tenant Selection: Fairer Practices

4. Prohibition of Discrimination

The bill explicitly prohibits discrimination against tenants based on familial status or whether they receive housing benefits. "Blanket bans" against certain groups will be outlawed, requiring landlords to assess each application on its individual merits. This change aims to create a more inclusive rental market.

5. Ban on Bidding Wars

To curb rising rental costs, landlords and agents will be required to advertise a set asking rent and will be prohibited from inviting or accepting bids above this amount. This measure is designed to standardise rental pricing and protect tenants from inflated costs driven by competitive bidding.

6. Reasonable Pet Requests

Tenants' rights to keep pets will be strengthened, as landlords will no longer be able to unreasonably refuse pet requests. Decisions will be evaluated on a case-by-case basis, with landlords required to provide valid reasons for refusal. Importantly, landlords will be allowed to request that tenants obtain pet insurance to cover potential damages.

Tenancy Agreements: Shift to Periodic Tenancies

7. Abolition of Fixed-Term Tenancies

The traditional structure of assured shorthold tenancies (ASTs) will transition to periodic tenancies. Tenants will gain the flexibility to provide two months’ notice to vacate at any time, significantly enhancing tenant mobility. Additionally, the government will impose a cap on upfront rental payments, limiting them to a maximum of one month’s rent, making it easier for tenants to afford the initial costs of renting.

Managing the Property: Improved Tenant Protections

8. Extension of Awaab's Law

Awaab's Law, which sets strict timeframes for addressing serious health hazards in rental properties, will be extended to cover the private rented sector. This means landlords will be held to higher standards regarding tenant safety and welfare.

9. Restrictions on Rent Increases

New regulations will limit rent increases to once per year, requiring landlords to issue a Section 13 notice to implement changes. Rent increases must reflect current market rates, and tenants will have enhanced rights to challenge them. This measure aims to stabilise rental costs and protect tenants from sudden financial strain.

10. Tougher Civil Penalties

Landlords who fail to comply with these new regulations will face stricter civil penalties for serious breaches. Local councils will have increased powers to enforce these penalties, including provisions to address illegal evictions. The newly introduced Rent Repayment Orders can be applied against any landlord within the tenancy chain, further strengthening tenant protections.

End of Tenancy: Reformed Eviction Processes

11. Abolition of Section 21 Evictions

A landmark change in the Renters' Rights Bill is the abolition of “no-fault” evictions under Section 21. This means landlords will no longer be able to terminate tenancies without providing a valid reason. Instead, they must use Section 8 notices, which require justifiable grounds for eviction.

12. Reformed Section 8 Grounds

The bill will also reform the grounds under Section 8 for possession claims, increasing notice periods for various reasons, such as selling the property or moving in personally. Additionally, the notice period for eviction due to rent arrears will be extended, though landlords will retain the right to evict tenants in cases of serious tenancy breaches.

Key Takeaways

The Renters' Rights Bill represents a major shift in the relationship between landlords and tenants, with a strong focus on empowering tenants while ensuring landlords meet their responsibilities. As the legislation takes effect, landlords must proactively familiarise themselves with these changes to ensure compliance, safeguard their interests, and foster positive tenant relationships. Understanding these reforms not only helps navigate the regulatory landscape but also contributes to a more stable and transparent private rental market in England.

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