Cart
Although it has not yet received Royal Assent, we now have a much clearer picture of what the Renters’ Rights Bill will look like.
Please note that this article has been published on 21st February 2025 and may (most probably, will!) be subject to change, though other than clarification here and there, we don’t expect the content of the bill to significantly change.
Key features of the Renters’ Rights Bill that you need to know are:
• All tenancies to become periodic
ALL tenancies will become periodic immediately from the start date of the Bill. Assured Shorthold Tenancies will no longer exist. They will become “Assured Tenancies”.
This means that there will be no such thing as an early termination, or tenancy renewal.
Notice periods for both parties will change – 2 calendar months for tenants, mostly 4 calendar months for landlords.
• Abolition of Section 21 evictions
Ending a tenancy via a Section 21 notice will no longer be possible. If you have a S21 in place before the start date of the Bill, we expect that these will still be valid.
• Update Section 8 possession grounds
There will be a new selection for S8 grounds, but longer notice periods required for all grounds.
The main grounds that you should be aware of are:
Rent arrears – Before you can serve a S8 for rent arrears (Ground 8, 10, 11), the tenant will need to be in 3 months’ arrears. The notice period will be 4 weeks.
Landlord/close family member moving in (Ground 1) or selling (Ground 1A) – These grounds can not be used in the first 12 months of the tenancy. The notice period will be 4 months’ notice. You will not be able to re-let for 12 months after Ground 1 or 1A has been used.
Student landlords – New Ground 4A. A landlord can serve 4 months’ notice to recover possession. Possession can only be recovered between June and Sept. The contract must have been signed within 6 months of the tenancy start date, and must contain a clause referencing the possible use of Ground 4A in the future.
Penalties: Rent repayment order for misusing grounds for eviction.
• Rent increases
As now, landlords will only be able to increase the rent once per year, but they must do this via a Section 13 notice.
There will be a change in the process for tenants to appeal against rent rises. The tenant will always have the right to challenge the increase and have their case heard by first tier tribunal (as they do now). They must start the challenge with the tribunal before the start date of the proposed new rent, and notify the landlord that they are challenging the rent increase.
The maximum the rent tribunal can award is the level of rent the landlord has asked for. The date for the new rent to be paid will not be back dated, and the tribunal could give a start date anything up to 2 months from their decision date.
• Tenant’s right to keep a pet
A landlord will not be able to unreasonably refuse a pet. “Unreasonable” is not defined, but prohibition by a superior landlord is an example.
A landlord will be able to require a tenant to get pet damage insurance or will be able to take this insurance themselves and charge tenants the additional cost for the premium. There will be an amendment to Tenant Fees Ban 2019 to allow this.
• Make it illegal for landlords and agents to discriminate against prospective tenants in receipt of benefits or with children
Some specific exclusions will apply re accepting children, for example, where it would create overcrowding.
Government measures will ensure that terms in mortgages, superior agreements and insurance restricting letting to tenants with children/in receipt of benefits are null and void.
Penalties: Civil penalties on landlords/those acting on their behalf up to £7,000 for breaches. Can receive multiple penalties for continued/repeat breaches.
• End rental bidding
A landlord and/or agent will not be able to ask for, encourage or accept over the asking rent.
Penalties: Civil penalties on landlords/those acting on their behalf up to £7,000 for breaches. Can receive multiple penalties for continued/repeat breaches.
• Limiting rent in advance
A landlord/agent will not be able to take more than 1 month’s rent and 5 weeks deposit.
Regardless of the situation (for example those who can’t pass references through the usual means), no rent in advance can be accepted at all.
We do not expect that landlords will be required to repay rent that they have already received up front, but from the date the next rent payment is due, it must only be paid monthly.
The first month’s rent can only be taken after a tenancy agreement has been signed.
Penalties: Repayment of a prohibited payment of rent in advance to the tenant. Civil penalty on landlords, and anyone acting on their behalf, of up to £5,000 for breaches.
• New Private Rented Sector Landlord Ombudsman
Landlords will need to sign up to the PRS Landlord Ombudsman. An annual fee will apply. Even if you’re managed by an agent, the landlord still needs to apply.
Landlords must join in order to let a property and must remain members for a reasonable period of time after they cease being a landlord.
Tenants will be able to lodge a complaint with the Ombudsman at any time from making an initial enquiry about the property until after the tenancy has ended. Only tenants will be able to seek redress from the service.
The Ombudsman will have powers to compel landlords to issue an apology, provide information, take remedial action, and/or pay compensation.
Penalties: Failure to join could result in rent repayment order, civil penalty of £7000 – £40,000 or criminal prosecution for continuing or repeated breaches.
• New Private Rented Sector Database
Landlords will need to register themselves and their properties on the PRS Database. A fee will apply. Landlords will have an obligation to keep the database updated.
The database will inform landlords of their legal obligations and help them demonstrate compliance, provide access to guidance and communicate changes to requirements/responsibilities.
Landlords will need to be registered in order to let a property or to use any S8 Grounds other than ground 7A or ground 14 (which relate to tenant anti-social behaviour).
The database will be accessible by tenants so that they can make informed decisions about which property they choose and take action to enforce their rights by escalating issues to the local council or PRS Ombudsman.
The database will help councils target enforcement activity where needed.
What information is publicly available on database is yet to be decided but will likely include information related to property standards. It is expected that not all data will be publicly accessible.
Penalties: Failure to join could result in rent repayment order, civil penalty of £7000 – £40,000 or criminal prosecution for repeated breaches or providing fraudulent information.
• Application of the Decent Homes Standard to the PRS
Landlord will have a legal duty to ensure the property is free from hazards, warm, insulated etc.
Penalties: Rent repayment order, civil penalty of up to £7,000 or criminal prosecution for landlords who fail to take reasonably practicable steps.
• Application of ‘Awaab’s Law’ to the PRS
This will bring Awaabs Law (currently only applicable in the social sector) to the PRS.
PRS landlords will be required to address hazards, such as damp and mould, within a specified time period. If landlords do not comply, tenants will be able to bring enforcement action against them through the courts.
Awaabs Law sets legal expectations about timeframes within which landlords must take action to make homes safe where they contain serious hazards.
Penalties: Landlords can be ordered to take appropriate action to remedy fault and pay financial compensation. In addition, a civil penalty of £7,000 to £40,000 can be applied, or criminal prosecution for the worst offences.
• Rent repayment orders
The maximum amount of rent a landlord can be ordered to pay will be increased to 24 months.
A tenant or local authority can apply for a rent repayment order after the offence for up to 24 months.
Rent repayment orders extended to superior landlords and company directors.
Sorry, comments are closed for this post.