Landlord briefing
Renters' Rights Bill: what landlords need to know
The Renters' Rights Bill (RRB) has received Royal Assent and officially became law on Monday 27th, marking one of the most significant changes to the private rented sector in a generation. The Government will confirm an implementation timeline in the coming weeks, outlining when each part of the Bill will take effect.
Objectives of the Bill
The Renters' Rights Bill aims to re-balance the relationship between tenants and landlords — offering greater protections to renters while ensuring that landlords meet higher standards of responsibility.
Balancing rights
Striking a balance between the rights of tenants and landlords, ensuring fairness and transparency in the renting sector.
Improving standards
Setting minimum property standards to ensure rented properties meet basic safety and habitability requirements, improving living conditions for tenants.
Ensuring affordability
Landlords will not be able to accept offers over the advertised asking price, and rent increases will only be allowed once per year. Tenants must be given at least two months' notice and can challenge excessive increases through a tribunal.
Greater security
Providing tenants with greater security and stability in their rented accommodation through simpler tenancy structures and new protections.
Key changes landlords need to know
Abolition of Section 21
The main aim of the Bill is to simplify tenancy structures by transitioning all tenancies to periodic contracts. A tenancy will end only if the tenant chooses to leave, or if the landlord has a valid reason.
Changes to Section 8
Following the removal of Section 21, landlords will need to use Section 8 of the Housing Act 1988 to regain possession, typically by providing grounds for eviction — the Bill also introduces several new and strengthened grounds.
Periodic contracts
Fixed term tenancies will end. When a tenant moves in, there will be no end date as per current Assured Shorthold Tenancy Agreements. The tenancy will continue on a month-by-month basis until the tenant decides to leave or the landlord has a valid ground for possession.
No bidding wars
Landlords will not be able to accept offers that exceed the advertised asking price — accurate pricing will be essential.
Minimum notice periods
Tenants will have the right to end their tenancy at any time with two months' notice. Landlords will be able to give tenants four months' notice to sell or move into their rental property. Notice periods for other grounds (antisocial behaviour, rent arrears, etc.) will continue to vary.
Restrictions on rent increases
Landlords will be able to increase rents once per year, provided the increase reflects the market rate. Tenants will have the right to contest any proposed increase they believe to be unfair.
Property Portal
All landlords will be required to register on a new digital property portal to help demonstrate compliance with their legal requirements.
Pets in properties
Tenants will have the right to request permission to keep pets. Landlords will have to consider each request and provide a fully considered response.
Landlords should also be aware of…
- Landlords will need to provide tenants with a minimum of 12 months' tenancy before being able to regain possession using the sale or occupation grounds — notices can only be served at month 8.
- An overhaul of Rent Repayment Orders will provide additional recourse for tenants or local authorities to go to a tribunal if a landlord commits certain offences.
- In addition to strengthened grounds for eviction due to anti-social behaviour, many notice periods will be doubled.
- Fines for minor or initial non-compliance can be up to £7,000, rising to £40,000 for repeat offences — per offence.
- Where a landlord serves notice to sell or move back in, they will not be able to re-let the property for a period of 12 months from the date the tenants vacated.
- A ban on upfront rental payments of more than one month — rental payments will be restricted to a maximum of a month at a time.
- Landlords will be required to sign up to a new digital property portal to demonstrate compliance with their legal requirements.
- A ban on "no children" and "no DSS" advertising.
What should landlords be doing now?
Although the Bill is unlikely to take full effect until the end of 2025 or early 2026, Hume Homes recommends the following for landlords:
Consider Rent Protection
Being without access to their rental property — or the income from it — is the worst-case scenario for any landlord. Although this is already a risk, the new laws may mean it takes longer to regain possession if a tenant fails to pay. Protect yourself with a Rent Protection product. Hume Homes offers one of the most comprehensive options on the market.
Be selective with tenants
Most landlords will agree that a good tenant is more important than anything else. Take time to select the best tenant for your property, and use an agency like Hume Homes with one of the most robust and stringent tenant referencing systems in the industry.
Optimise your property
The best rental properties always achieve the best rents and attract the best tenants. Ensure your property is in good decorative order and presents well to prospective tenants. If your property is suffering from mould or damp, now is the time to address it — before the new Decent Homes Standard is applied to the private rented sector.
On the flip side, the removal of fixed-term contracts means tenants will no longer be able to lock themselves into long-term tenancies with their rents fixed at a specific amount.
Plan your portfolio with Hume Homes
Our lettings and management team can walk you through what the Renters' Rights Bill means for your specific properties, and help you prepare for each phase of implementation.
Speak to our team
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