The Renters’ Rights Bill: Key Takeaways for Landlords and Tenants

The Renters’ Rights Bill is set to bring about significant changes to the UK’s residential letting landscape, with Royal Assent expected in autumn. This legislation aims to address long-standing tenant grievances regarding substandard living conditions, retaliatory evictions, and contractual uncertainties. With nearly 20% of UK households in privately rented properties, the call for reform has been substantial. The Bill seeks to improve living conditions and enhance security for renters, fundamentally shifting the perception of landlords towards regulated housing providers rather than just property owners. Corporate tenancies, however, will generally remain unaffected.

A significant driver for the Bill is highlighted by scenarios such as Emma’s, a long-term tenant of 10 years+ who, despite being a good renter, received a Section 21 “no-fault” eviction notice to vacate in 2 months because her landlord wanted to sell the property. In 2023 alone, over 20,000 households in England faced eviction via Section 21 notices, underscoring the insecurity many renters experience. Conversely, landlords like James, who rely on rental income, are concerned about regaining possession from problematic tenants and navigating increased regulation. The Bill attempts to create a more simplified, regulated framework that encourages responsible ownership.

When to expect the changes

Following Royal Assent, likely in September, there will be a substantial lead-in period, possibly three to twelve months, before all new regulations are fully enforced. This period is crucial for establishing necessary infrastructure, such as a new landlord ombudsman service and register. A clear timetable will be provided once the Bill becomes law.

Key changes introduced by the Renters’ Rights Bill

The Bill introduces several pivotal changes that will redefine landlord-tenant relationships:

A Single, Periodic Tenancy Agreement

The Bill will abolish fixed-term Assured Shorthold Tenancies (ASTs), converting all existing ASTs to periodic tenancies. This means tenancies will run month-to-month, even for student accommodation (unless purpose-built). If a tenant is midway through a fixed term when the Act is enacted, it will convert to a periodic tenancy. The aim is simplification, moving away from a complex web of tenancy types.

Landlords will need to familiarise themselves with a new standard agreement protocol, and a new government model tenancy agreement is expected. There will be no more tenancy renewals, with tenancies continuing until the tenant gives two months’ written notice to quit, or the landlord uses one of the new Section 8 grounds for termination. This effectively makes two months the minimum tenancy period. Crucially, one joint tenant will be able to terminate a periodic tenancy for all, which could significantly impact student lettings. For tenants like Emma, this offers greater security. For agents, renewal fees will cease, with discussions suggesting charges for services related to Section 13 notices and rent review procedures instead.

New Rules on Rent

With over 50% of UK renters spending more than a third of their income on housing, the Bill introduces regulations to balance power in rent negotiations:

• Maximum one-month rent periods: All rent payments will be pro-rata to be payable monthly upon the Act’s commencement, regardless of previous arrangements.
• No upfront rent requests: Landlords can only request one month’s payment at a time. This could impact international students or self-employed individuals who traditionally pay large sums up front. Rent paid in advance before the law changes will not need to be returned. Tenants can voluntarily pay rent in advance once the tenancy has commenced or the agreement signed, but landlords cannot make it a contractual condition.
• Rent Review: Existing rent review clauses will be void. Landlords can only increase rent by serving the new version of a Section 13 notice (Form 4), and only once per year, with two months’ notice. Tenants can challenge increases at the First-tier Tribunal, and if challenged, the new rent commencement date will be after the judge’s decision. The Bill does not introduce rent caps.
• Rental Adverts: Adverts must state the proposed rent, and landlords cannot accept offers to pay more, effectively banning rental bidding. Applicants can offer less than the proposed rent but not above it.

The abolition of Section 21 “No-Fault” Evictions

Landlords will no longer be able to evict tenants without providing a statutory reason. If a Section 21 notice is served before the Bill is enacted, landlords will have a limited time (expected 3 months’) after the commencement date to apply to the court, provided the notice is still within its six month validity period. While this significantly enhances tenant security, landlords will still have avenues for repossession through valid Section 8 grounds which have also been amended in the new Bill.

Enhanced Housing Standards and Wider Changes

The Bill introduces clearer enforcement measures for property conditions, focusing on the decency of housing stock. This includes increased scrutiny on energy efficiency ratings, structural issues, and hazards flagged under the Housing Health and Safety Rating System (HHSRS). Awaab’s Law will be implemented for the private sector, mandating clear guidance and timeframes for landlords to address serious hazards like mould. The departure of non-compliant landlords is seen as a positive step for the profession.

The Right to Request Pets

Tenants will gain a statutory right to request permission for pets, and landlords must treat such requests reasonably, requiring a “good reason” to deny them. Good reasons include a “no pets” clause in a superior lease, health concerns (e.g., severe pet allergy), or unsuitability of the property for the specific pet. If a pet is allowed, tenancy agreements should include clear guidelines on tenant responsibilities for preventing damage. Landlords cannot charge a pet fee but may be able to request tenants pay a pet deposit, up to a limit of three weeks’ rent to cover potential damage (more on this to come). Denied requests are likely to be appealable to the new Ombudsman service.

Other Notable Changes

• Benefits: Landlords will be prohibited from refusing tenants solely because they receive Universal Credit. Rejections must be based on valid reasons such as overcrowding or inability to afford the rent after credit checks.
• New Landlord Database: A comprehensive database will require landlords to upload details for each property they own, enabling tenants to see who they are renting from.
• New Landlord Ombudsman Scheme: All landlords must register with this scheme upon its launch, aiming to provide quick and cost-effective dispute resolutions and reduce court backlogs.

Penalties for Non-Compliance

The Bill introduces significant penalties:

• Civil penalties of up to £7,000 for a first offence and up to £40,000 for continued or repeated offences.
• Rent repayment orders for up to two years’ rent, claimable by tenants.
• Landlords relying on possession grounds for personal or family use cannot re-let the property for up to 12 months, nor can they advertise it.

For example, using an old AST after the commencement date could lead to a £7,000 fine and a rent repayment order. Councils will have strong investigatory powers, including the ability to enter business premises without a warrant.

Preparing for the Future: Actionable Steps for Landlords

Landlords and agents can take several proactive steps to ensure readiness:

1. Review Existing Tenancies: Identify any clauses that might conflict with the new Bill and consider proactive steps for problematic tenancies.
2. Enhance Tenant Screening and Communication: Implement robust professional credit checks and foster strong relationships with tenants, keeping them informed of changes.
3. Bolster Property Standards: Proactively address energy efficiency and general property safety to mitigate future regulatory risk and enhance tenant satisfaction.
4. Maintain Accurate Records: Meticulous record-keeping will be crucial for protection in legal or tribunal proceedings.
5. Budget for Flexibility: Create a buffer fund for potential rent gaps or legal fees and consider landlord insurance.
6. Implement Fair Policies Now: Proactively adopt practices aligned with the Bill’s objectives, such as accommodating reasonable pet requests or maintaining sustainable rent increases.
7. Engage with Landlord Associations and Stay Informed: Connect with other landlords, agents, or legal advisors and stay abreast of legislative developments.

Final Reflections

While presenting notable challenges, the Renters’ Rights Bill aims to create better, safer homes for tenants. Professional landlords should not view this as negatively as it has sometimes been portrayed, as uncertainties regarding timing and detailed requirements will become clearer. Opportunities exist, such as stable, long-term tenants leading to fewer voids, quicker dispute resolution, and a more professionalised sector fostering greater public trust. Risks include potential for slower rent adjustments and increased administrative burden. Landlords in Scotland and Europe have successfully adapted to similar frameworks, often resulting in strong returns and improved tenant relationships. Ultimately, the Bill seeks to foster stability, fairness, and mutual respect between landlords and tenants.

If you are a landlord and would like to discuss anything raised in this blog, please contact Nicola Davies, Partner and Head of the Property Litigation team.

(This is an updated summary of the talk Nicola Davies provided to the Portsmouth Property Association in June 2025)

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