The Renters’ Rights Bill – the Changing Landscape

The Renters' Rights Bill is in its final stages and is expected to proceed to Royal Assent becoming the Renters’ Rights Act 2025 shortly thereafter.  The objective of the proposed reforms is to have a more regulated, transparent and tenant friendly rental system.  Whilst the full reforms have yet to come into effect, it is imperative that landlords begin preparing for change.  

We outline below some of the key changes the Bill will bring into effect:

End of Fixed-term Tenancies

All Assured Shorthold tenancies will convert to Periodic Tenancies. Whilst tenants will be able end a tenancy giving two months’ notice, a landlord will be unable to terminate the tenancy unless able to rely on the expanded grounds for possession.

Abolition of Section 21

Landlords will no longer be able to regain possession of a property through Section 21 “no-fault” evictions as these are being dispensed with. Rather they will need to rely upon one or more of the grounds in Section 8.

Section 8 Grounds for Possession

The Bill proposes a number of amendments to both mandatory and discretionary Grounds for Possession under Schedule 2 Section 8 of the Housing Act 1988. Changes are proposed to most mandatory grounds and will introduce new grounds. There appear to be less changes to the discretionary grounds, however it will be for a Judge to determine if it is reasonable to make an order for possession.

Key changes include but are not limited to:

Requirement for Landlord or family occupation and/or Sale of Property: Landlords can evict tenants if they or a close family member intend to move in (Ground 1), or if they plan to sell the property (new Ground 1A). Both require a four-month notice period.  Such grounds cannot be relied upon in the first 12 months of a tenancy.  

In addition, if the property is repossessed for the purposes of sale, in the event that sale falls through, a landlord will be unable to relet the property for a period of 12 months.

• Redevelopment of the property: where a landlord wishes to substantially redevelop or demolish a property, such grounds cannot be relied upon within the first 6 months of a tenancy and the landlord will also have to give 4 months’ notice.  The landlord will need to demonstrate that any redevelopment cannot be undertaken with the tenant in occupation.
• Repossession by the Landlord’s mortgagee: where the property is subject to mortgage and the lender exercises power of sale requiring vacant possession, 4 months’ notice to the tenant will be required to be given.
• Serious rent arrears: The threshold for eviction has increased from two to three months’ arrears, with the notice period extended from two to four weeks.
• Anti-social behaviour: if a tenant or anyone living with or visiting the property is found to be causing nuisance or annoyance, and/or is convicted of utilising the property for illegal or immoral purposes and/or is convicted or an indictable offence in the locality, notice may be shorter or immediate, however the court may only make an order for possession which is effective at least 14 days following service of the notice.

Evidence requirements: Landlords must provide clear evidence of any or all grounds to be relied upon, and most evictions will likely require court involvement, i.e. where the tenant does not.

Proposed penalties for misuse: Serving a Section 8 notice based on a ground the landlord does not reasonably believe applies (or does so recklessly) may be subject to a civil penalty of up to £30,000 per breach, an/or a criminal conviction and unlimited fine. If the landlord is a limited company, both the company and its directors may be held liable.

Compliance with Statutory Requirements – deposits gas safety certificates and EPCs

• Tenancy deposits: Landlords will still need to ensure any tenancy deposit is protected under the new regime.  If they fail to do so they will be unable to evict a tenant on any ground under the Section 8 procedure save for in relation to anti-social behaviour
• Gas safety certificates and EPCs: a landlord’s failure to comply in relation to these provisions will not restrict its ability to gain possession

Pets, children and recipients of benefits

Tenants will be permitted to request a pet and a landlord must give full consideration to the request. Landlords will be unable to unreasonably refuse a request and must provide or refuse consent in writing within 28 days of receipt of any request.
To prohibit further discrimination, landlords can no longer refuse tenants with children or those in receipt of benefits.

Rent bidding wars banned

Under the new legislation, rent bidding wars will be banned.  Landlords and agents must advertise a fixed rent and cannot accept offers above it.  

Rent in advance limited

It is intended that the practice of landlords demanding large amounts of rent in advance of a tenancy being entered into will cease.  The government intends to restrict  landlords from requesting more than one month’s rent once a tenancy agreement has been signed and prior to commencement.

Rent Reviews

Rent reviews will be limited to one per year to market value. Rent review provisions within the tenancy agreement will have no effect.  The landlord will need to issue a Section 13 notice giving at least 2 months’ notice of the new rent taking effect.  Tenants can challenge increases at the First-tier Tribunal which will only award either the proposed rent or the fair market rate (whichever is lower). 

A Private Rented Sector Ombudsman

The “Ombudsman” will be established to resolve disputes between landlords and tenants providing an independent, swift, fair and binding resolution in relation to tenants’ complaints about their landlord. 

National Private Rented Sector Database

A digital database for the private rented sector will also be introduced, requiring landlords to register each property for a fee (amount yet to be confirmed). The aim is to assist landlords in their understanding of their legal obligations and to demonstrate compliance with the same. The database will become a central hub of accountability, allowing tenants to make informed choices about when entering into a tenancy. It is also designed to support local authorities seeking to take enforcement action where required. Importantly, some possession grounds will only be available to landlords registered in the database.

Local authority enforcement

New duties and powers will be conferred upon local authorities to enforce the new rules enabling them to:

•    investigate alleged breaches
•    enter certain premises without a warrant
•    require production of documentation
•    apply for a rent repayment order if a landlord has committed an offence such as knowingly or recklessly relied upon a ground for possession and/or is in breach restrictions for the letting or marketing of a property.

Penalties

Local authorities have enhanced enforcement powers against landlords who do not comply with the legal requirements. They will be able to issue fines for each breach. There will be no defence to a landlord who says it was unaware of the rules and therefore it is vital that both landlords and agents are fully aware of the effects and meaning of the changes.

The Decent Homes Standard

Previously limited to social housing, this will be extended to private rentals to ensure that properties meet minimum standards of safety and decency. Properties must therefore:

•    Be in a reasonable state of repair
•    Have modern facilities and services
•    Provide effective heating and insulation
•    Be free from serious hazards, including damp and mould
Awaab’s Law will also apply to private rentals, mandating strict timeframes for landlords to inspect and fix health hazards. Landlords will no longer be able to attribute damp or mould to tenant behaviour. 

Next steps

The Bill has not yet become law, but the path forward is clear: the aim is for a more regulated, transparent, and tenant-friendly rental system. The proposed reforms aim to protect tenants by closing existing loopholes, while still allowing landlords to regain possession when necessary.

Whether you manage a portfolio or just a single property to let, our Dispute Resolution, Litigation and Conveyancing Teams are here to offer advice, guidance and assistance.