The Renters’ Rights Bill: What does it mean for landlords and tenants?
The Renters’ Rights Bill, set to become law in 2025, introduces significant reforms to the UK’s private rented sector, impacting both landlords and tenants.
As specialists in the property and real estate sector, we recognise the importance of understanding these changes for all stakeholders involved, so here is an overview of what to look out for:
What will the Renters’ Rights Bill do?
- Abolish Section 21 ‘no fault’ evictions: Landlords will no longer be able to evict tenants without providing a valid reason, offering tenants greater security in their homes.
- Introduction of periodic tenancies: Fixed-term tenancies will be replaced with periodic tenancies, allowing tenants to end their lease with two months’ notice. Landlords can regain possession only under specific grounds, such as intending to sell the property or moving in a family member.
- Rent increases: Landlords can only increase rent once a year, with two months’ notice. Tenants can appeal unreasonably high rents.
- Implementation of the Decent Homes Standard (DHS): Private rental properties must meet minimum standards concerning repair and maintenance, ensuring safer and more comfortable living conditions for tenants.
- Ban on discriminatory practices: Landlords cannot refuse tenants based on their receipt of benefits or if they have children, promoting fairness and inclusivity in the rental market.
- Right to keep pets: Tenants will have the right to keep pets, and landlords will need a valid reason to refuse. Landlords may request tenants to purchase pet insurance to cover potential damages.
What are the implications for landlords?
Landlords are going to be required to adapt to more regulation…
The abolition of Section 21 means landlords will have to have legitimate grounds for repossession, potentially leading to longer tenancy durations. They will also need to ensure properties meet the Decent Homes Standard which could involve additional investment in maintenance and upgrades.
The main action is for landlords to review and possibly adjust their tenancy agreements and policies to align with the new regulations, particularly concerning non-discrimination and pet allowances.
What about tenants?
When it comes to tenants, they stand to benefit from increased security and improved living standards, which is good news for renters.
The shift to periodic tenancies provides greater flexibility, and the enforcement of property standards ensures a safer living environment. Banning discrimination will also open up more housing options for a broader range of individuals and families, benefiting thousands of people across the UK.
When does The Renters’ Rights Bill come into force?
The Renters’ Rights Bill will significantly impact the UK’s rental landscape, aiming to balance the interests of landlords and tenants.
The bill has passed its third and final reading in the House of Commons and is moving to the House of Lords. It’s expected to come into force this summer, so it is recommended to have things in place before then.
We understand that these changes may influence various aspects of the property sector, including property management and client advisory services. We hope this has helped you stay informed, and don’t hesitate to contact us with any questions you may have.
