
The Labour Government’s Renters’ Rights Bill is in its final stages in Parliament, which means huge changes for both landlords and tenants are imminent. Here’s a summary of what the largest reforms to the private rental sector for over 30 years will mean for you:
- Tenancy Reform, including the ban of Section 21 notices and fixed term tenancies
- Rent reform, including restrictions to rent increases and it is becoming easier for tenants to challenge said increases
- Implementation of the Decent Homes Standard to the private rental sector
- Creation of both a Landlord Ombudsman and a Private Rented Sector Database
These changes will likely be implemented by the end of the year, with the final form of the bill to be decided in September when Parliament reconvenes, so understanding what the changes are and how they will affect you is essential. If you’d like to find out more information, see our more detailed breakdown of the current changes the bill contains using the link below.
The Labour Government’s Renters’ Rights Bill is in its final stages in Parliament, which means huge changes for both landlords and tenants are imminent. Here’s what the largest reforms to the private rental sector for over 30 years will mean for you:
Tenancy Reform:
- Abolition of Section 21 ‘No Fault’ evictions and changes to Section 8:
Section 21 evictions will be banned, for new and existing tenancies, meaning Section 8 notices will become the primary method of eviction. Alongside this, there will likely be changes to the mandatory and discretionary grounds for possession which you must prove for eviction, such as more leniency on rent arrears.
- Conversion of ASTs to Periodic tenancies:
All fixed term assured shorthold tenancies (ASTs) will immediately convert to periodic tenancies when the bill becomes effective. This includes both old and new tenancy agreements.
Rent Reform:
- Restrictions to rent increases:
Section 13 notices will become the only method of raising rent due to the abolition of ASTs, and these can only be issued once a year. Any increases must also align with the ‘fair market rate’.
- Changes to tenants challenging rent increases:
As before, tenants may challenge section 13 notices at a first-tier tribunal if they feel they exceed the market rate. However, this bill will prevent the tribunal from both raising rent further and backdating the increase from before its determination, which previously put off most tenants from using it. Additionally, it may defer the increase by up to two months, offering another incentive to challenge increases.
- Bidding wars are to be ‘outlawed’:
As a landlord you will be legally required to publish an asking rent for a property, and banned from asking for, encouraging, or accepting any bids above this price. Despite this, prospective tenants can still offer higher rent and you may accept these offers.
- Restrictions to rent payments in advance:
While the maximum tenancy deposit will remain the same, you will no longer be able to demand more than a month’s rent in advance payments. However, tenants are still allowed to pay more voluntarily.
Other changes
- Introduction of the Decent Homes Standard and new enforcement:
This new standard will set clear expectations for the state of properties to ensure decent living conditions, alongside Awaab’s Law which will set timescales for you to inspect and repair hazards. For properties with serious hazards that are not addressed local councils will be given additional powers to issue fines up to £7,000 without resorting to the courts.
- Creation of both a Landlord Ombudsman and a Private Rented Sector Database:
Registration to these systems will be a legal requirement as a landlord, and a small fee will likely be required for each property covered. They should offer an easier method for resolving and mediating disputes, while displaying any offences or penalties you have incurred.
- Banning of discrimination based on those with pets, children, or on benefits:
Blanket bans on properties based on tenants having children or being in receipt of benefits will be made illegal, and you must have a valid reason to turn down a tenant’s request for a pet. However, you will still have the right to refuse tenants if you believe they will be unable to afford rent.
When will these changes be implemented?
Parliament reconvenes in September of 2025, and so this is likely when the final bill should be passed. Therefore, it’s most immediate changes, particularly tenancy reforms (which are to be implemented as soon as possible per Government’s stated aim), are likely to come into effect by the end of the year.
Please remember that since the final bill has not been passed the exact details of reforms discussed here may still be open to changes. It is important that you ensure all your information is as up to date as possible.
Find out more here