Key Updates in the Renters’ Rights Bill: What Tenants and Landlords Need to Know
The Renters’ Rights Bill, introduced in the House of Lords as HL Bill 60 of 2024–25, represents a significant shift in the regulation of the private rental sector (PRS) in England, with some provisions extending to Scotland and Wales. The bill builds upon the previous Renters (Reform) Bill 2023–24 but introduces several crucial changes. Here’s a breakdown of the key updates.
Abolition of Section 21 Evictions
One of the most significant changes is the abolition of ‘no-fault’ evictions under Section 21 of the Housing Act 1988. All new and existing assured tenancies will transition to periodic agreements with no fixed end date. This means tenants can remain in their homes unless they choose to leave or landlords establish grounds for eviction.
Revised Possession Grounds
The bill strengthens protections for tenants while allowing landlords to regain possession in specific cases:
- Selling or Moving In: Landlords must provide four months’ notice and cannot use this ground within the first 12 months of a tenancy. Re-letting the property within 12 months will be prohibited.
- Rent Arrears: The threshold for mandatory eviction due to rent arrears has increased from two months to three months.
- Antisocial Behaviour: Expanded criteria for judges to consider, allowing immediate claims for possession with reduced notice periods.
- Student Accommodation: Landlords of HMOs renting to full-time students can regain possession to align with academic cycles, provided prior notice is given.
Rent Controls and Bidding Wars
- Appeals Against Rent Increases: Tenants can challenge excessive above-market rent increases through the first-tier tribunal, ensuring rent hikes remain fair.
- Ban on Rental Bidding: Landlords and agents cannot encourage prospective tenants to bid above the advertised rent, aiming to prevent unaffordable price inflation.
- Rent Increases: Landlords can only raise rent once a year via a Section 13 notice, with two months’ notice.
Landlord Ombudsman and Compliance Database
- A mandatory private rented sector landlord ombudsman will provide tenants with a streamlined dispute resolution mechanism.
- A PRS database will require all private landlords to register their properties, enhancing transparency and enforcement efforts by local authorities.
Strengthened Tenant Rights
- Anti-Discrimination Measures: It will be illegal for landlords to discriminate against prospective tenants based on benefits status or family circumstances.
- Right to Keep Pets: Landlords must respond to pet requests within 28 days and cannot unreasonably refuse consent.
Improved Housing Standards
- Application of the Decent Homes Standard: PRS properties must meet minimum safety and quality criteria, similar to social housing.
- Awaab’s Law Extension: Landlords will be required to address health hazards such as damp and mould within a defined timeframe.
Tougher Enforcement and Rent Repayment Orders
- Expanded Local Authority Powers: Councils will have stronger enforcement tools, including increased fines and investigatory powers.
- Harsher Penalties: Fines for non-compliance, such as failing to register on the PRS database, will range from £7,000 to £40,000.
- Stronger Rent Repayment Orders: Tenants can claim up to 24 months’ rent back in cases of serious landlord violations.
Political and Market Reactions
- Labour’s Position: The government views the bill as essential to tackling insecurity and poor standards in the PRS.
- Conservative Opposition: The party argues that the reforms will discourage investment in rental properties, potentially exacerbating housing shortages.
- Landlord Associations: Some groups, like the NRLA, have raised concerns about increased regulations, while tenant advocacy groups welcome the changes.
Controversies and Reactions
The Renters’ Rights Bill represents one of the most substantial overhauls of the PRS in decades. While it aims to provide greater security and fairness for tenants, it also introduces new obligations for landlords. As the bill progresses through Parliament, its final form and implementation details will determine its full impact on the housing market.
Tenant advocates praise the bill but argue it doesn’t address affordability crises or include rent controls. Landlord groups warn the reforms may reduce rental supply, citing risks of longer court delays and financial pressures. Political divide: The Conservative Party opposes the bill, claiming it distorts the market, while Labour and smaller parties support it with calls for stricter rent caps.
What’s Next?
The bill now moves to the House of Lords for scrutiny. Key debates will focus on balancing tenant security with landlord flexibility, court system readiness, and funding for local enforcement. For tenants, this bill promises greater stability; for landlords, it demands adaptation to stricter regulations. As the UK rental market evolves, stakeholders on all sides will watch closely to see if these reforms strike the right balance.
Full report is available in House of Lords Library
