Renters’ Rights Bill: What do we know, so far?

Fri 7 February 2025

The Labour Government’s Renter’s Rights Bill is an upcoming piece of legislation set to change the Private Rented Sector. The bill has this week passed its Second Reading in the House of Lords and widely anticipated to become law this Spring.

Key Provisions of the Renter’s Rights Bill

The bill, which expands on the Renters’ Reform Bill tabled by the Conservative Government, introduces new protections and more rights for renters and intends to improve housing quality. Below is a summary of the bill, following the Second Reading:

Tenants’ Rights

• All Assured Shorthold Tenancies (ASTs) will move to a single, simpler system of periodic tenancies.
• Section 21 “no fault eviction” Notices will be abolished.
• Tenants will have a 12 month “protected period” from the beginning of their tenancy.
• Section 8 grounds for possession will be enhanced to include notice provisions for landlords wishing to sell or occupy their properties.
  • For rent arrears, the mandatory threshold for eviction will be lifted from 2 months to three months and the notice period from 2 weeks to four. Landlords will still be able to use discretionary grounds for rent arrears.
  • For landlords wishing to sell or occupy, 4 months' notice will need to be provided to the tenant requiring possession no sooner than the end of the 12 month protected period.
  • As is the current system, landlords will need to apply to the courts for a possession order should the tenant fail to vacate.
• Tenants will be able to leave by providing 2 months' notice which must align with the end of a rent period.
• Landlords will be legally required to consider a tenants’ request to keep a pet, with consent not being unreasonably withheld.
  • It will be considered reasonable for landlords to refuse pets where the superior landlord prohibits them.
  • Landlords will be able to request that the tenant takes out insurance against damage caused by pets or take out the insurance themselves with the ability to recover reasonable costs from the tenant.

Rent

• It will only be possible to review rents once per year with a prescribed notice and with two months’ notice to take effect.
  • Rent review clauses within Tenancy Agreements will no longer be enforceable.
• If tenants do not agree with proposed rent increases, it will be possible for them to apply, at no cost, to a rent tribunal, who will determine the market rent.
  • The tribunal will not increase the rent above what the landlord has sought and increases will take effect from the tribunal determination date.
• Landlords or letting agents will be required to publish an asking rent for their property and will be unable to accept offers higher than this.
• It will no longer be possible to demand lump sums of rent in advance.
• Landlords and letting agents will only be able to collect the first months’ rent in advance once a tenancy agreement has been signed.
• Direct action will be taken to prevent discriminatory practices in the PRS including banning “No DSS” adverts and refusal to consider prospective tenants with children or are in receipt of benefits.
• Guarantors will no longer be liable for rent following the death of a tenant.

Property Standards

• A Decent Homes Standard, to ensure tenants live in safe and decent homes, will be introduced and enforced by local authorities.
• Awaab’s Law, which requires landlords to address hazards such as damp and mould within a specific timeframe, will extend to the PRS.
• Existing Mandatory and Selective Licensing Schemes will remain in place.

 Private Sector Database, Landlord Ombudsman Service & Enforcement

• Landlords will be legally required to register their portfolio on the PRS Database and sign up to the PRS Landlord Ombudsman, with civil penalties to those who fail to do so.
• The PRS Database is intended to help landlords better understand their responsibilities and obligations.
• It is expected there will be a small annual fee to register with the PRS Landlord Ombudsman and there will be a deadline for registration.
• Tenants will be able to use the database to access information about a property they are looking to rent or refer to the Landlord Ombudsman to address any unresolvable issues with their landlord.
• Local authorities will be responsible for enforcement of the regulations and will be able to issue civil penalties, Rent Repayment Orders (RPOs), and potentially criminal proceedings, to those who fail to comply.

The Government intends the Renter’s Rights Bill to create a better and more transparent rental market. Although the Second Reading has left many important questions unanswered and potential amendments still to be debated as it moves to the Committee Stage.

RH & RW Clutton is here to assist with your ever increasing responsibilities as a Landlord, including compliance with upcoming legislation. Contact Sam Benson MARLA in our Lettings Department for further information.

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