The Renters’ Rights Bill Explained: Key Provisions and Implications for Renters and Landlords

The Renters’ Rights Bill (“the Bill”), currently at the Report stage in the House of Commons, is set to become law in 2025. This blog provides a summary of some of the main provisions of the Bill.

Tenancy Reform: Abolition of Section 21 and Periodic Tenancies

One of the key provisions in the Bill is the abolition of Section 21, commonly referred to as “no-fault evictions,” which allows landlords to evict tenants without providing a reason. According to the government, this change will protect approximately 11 million tenants from arbitrary eviction​.[1]

The Bill also abolishes fixed term assured tenancies, commonly referred to as Assured Shorthold Tenancies or ASTs. Instead, all current ASTs will be periodic tenancies, with tenants being able to stay in their home until they decide to end the tenancy by giving 2 months’ notice or the landlords recovering possession under one of the new grounds. Landlords will only be able to end a tenancy for specific, legally defined reasons which are set out in the grounds of possession below.

Grounds of Possession

The Bill introduces new grounds of possession that landlords can rely on to seek possession of their properties as well as reforms to existing grounds. For instance, the new ground 1 will allow landlords to seek possession where they intend to sell the property and ground 1A will be available where the landlord or a family member of the landlord requires the property to live in. Landlords intending to rely on these two grounds will be required to give 4 months’ notice and will be unable to rely on the grounds in the first 12 months of the tenancy.

The Bill also introduces other new grounds for possession including grounds for student accommodation, employment accommodation, or where there is a banning order, improvement notice, prohibition order, or where the HMO licence has been refused or revoked.

As well as introducing new grounds, the Bill proposes changes to existing grounds of possession such as grounds 8, 10 and 11, by increasing the mandatory threshold for rent arrears from 2 to 3 months’ and increasing the notice period from 2 weeks to 4 weeks, amongst others.

Importantly, save for grounds 7A and 14 – the antisocial behaviour grounds – deposit protection requirements will be required to be met for a possession order to be made. Currently, the Bill does not contain any reference to the other Deregulation Act 2015 requirements that affect the validity of section 21 notices.

Introducing the Decent Homes Standard to the Private Sector

A critical goal of the Bill is to improve housing quality in the private rented sector. To achieve this, the Decent Homes Standard, which already applies to social housing, will be extended to the private rented sector. According to the government, more than 21% of privately rented homes are currently classified as “non-decent,” with over half a million homes containing serious hazards such as mould, dampness, or structural issues​.[2]

It is intended that this reform will set minimum standards that landlords will be required to comply with to ensure that the tenants live in safe, well-maintained properties. Local councils will also be granted greater authority to enforce these standards, with fines of up to £7,000 for landlords who fail to address serious housing hazards​.

Addressing Rental Bidding Wars and Unfair Practices

In recent years, rental bidding wars have become an increasing concern in high-demand areas. Some landlords and letting agents have leveraged the housing shortage by encouraging potential tenants to outbid each other, driving up rental prices. The Bill addresses this issue by prohibiting landlords and agents from letting properties at a higher rent than the advertised rent.

Additionally, the Bill prohibits discriminatory practices, such as blanket bans on renting to families with children or individuals on housing benefits. These bans, which have long limited access to housing for vulnerable groups, will no longer be permitted except in limited circumstances as set out in the Bill.

The most recent amendments to the Bill also include prohibition on payment of rent in advance which will be treated as a prohibited payment under the Tenant Fees Act (2019).

Rent Control: Limiting In-Tenancy Rent Increases

The Bill also introduces limits on rent increases. Presently, landlords can raise rent mid-tenancy, often forcing tenants out if they can no longer afford the new rates. The Bill will limit the ability for landlords to increase rents to once per year and require landlords to provide a rent increase notice in a prescribed form, giving two months’ notice of the new proposed rent. a tenant dissatisfied with the new proposed rent could then apply to the First-tier Tribunal asking the Tribunal to determine whether the notice served is valid and to make a determination on the rent proposed if it is not in line with market rent.

Extending Awaab’s Law: Ensuring Safe Living Conditions

The Bill also extends the provisions of Awaab’s Law to the private rental sector. Awaab’s Law is named after Awaab Ishak, a two-year old who tragically died due to mould exposure in his family’s social housing, Awaab’s Law compels landlords to address serious housing hazards, such as dampness and mould, within specified timeframes​. Under this law, private renters will have the right to demand repairs and improvements to ensure that their living conditions are safe from hazards. Landlords will then be required to investigate and start works on the specified defects within a specified period which is likely to be in line with the Housing Health and Safety Rating System (HHSRS), with specific timeframes to be set by further regulations which are currently awaited.

Creating a Private Rented Sector Database and a Private Rented Sector Landlord Ombudsman

In an effort to increase transparency and support enforcement, the Bill proposes the creation of a Private Rented Sector Database (“the Database”) and a separate Private Rented Sector Landlord Ombudsman (“the Ombudsman”). While the  proposals on the Database are much the same as they were under the Renters (Reform) Bill – see our blogs here and here, the Ombudsman will offer free and impartial resolution for complaints raised by tenants.

Both the Database and the Ombudsman will allow local councils to target enforcement efforts, focusing on areas and landlords that need the most oversight.

Enhanced Rent Repayment Orders

The Bill also strengthens and expands the use of Rent Repayment Orders (RROs), as these will cover new offences specified under the Bill including but not limited to breach of a letting restriction, breach of the landlord redress scheme and provision of false information to the Database. Additionally, tenants will be able to reclaim rent for 24 months, up from 12 months, and bring a claim within two years of the offence. Further, superior landlords and company directors will also become liable for RROs which is hoped will deter sham rent-to-rent set ups.

Generally, the Bill also proposes that all civil penalties will be increased from a maximum of £30,000 to £40,000.

Impact on Landlords and Tenants: A Balanced Approach?

The Renters’ Rights Bill is heavily focused on improving tenant security in the private rented sector. It does this by restricting the landlords from serving notices seeking possession where there is no breach of tenancy or a rent increase notice within the first twelve months of the tenancy and proposes reforms to enhance enforcement by both tenants and local authorities. However, it also introduces measures aimed at supporting responsible landlords and eliminating unfair competition from rogue landlords. Those compliant landlords and agents will continue to operate in the sector and will be able to provide better standards of living accommodation which will encourage compliance by rogue landlords who will struggle to compete and otherwise risk facing enforcement action and losing out on rental income.

Despite this, some landlords have raised concerns about the increased regulatory burden and the potential impact this will have on their ability to manage properties effectively. Landlords will also be subject to various additional fees which they will have to pay to register on the Database and may have to pay compensation to tenants if ordered to do so by the Ombudsman.

As with any reform, the impact and response of the private rented sector market will surely dictate the extent of the Bill’s success. A change in attitude and approaches by the various stakeholder will be required and will surely play a huge part in the extent to which the reforms will be implemented.

For landlords and property agents, it will be crucial to stay on top of the changes and adopt good property management practices to prevent potential legal challenges by tenants or enforcement actions by local councils. Many landlords and agents should consider reviewing their operating models and conditions of their properties before the Bill completes its legislative journey and becomes law in summer 2025.

Our team of solicitors have advised individuals and organisations on the upcoming changes and the likely impact of these changes. If you have any queries in relation to the proposed changes and would like specific advice and guidance, contact our expert Housing Team at mail@anthonygold.co.uk or on 020 7940 4060.

[1] https://www.gov.uk/government/news/landmark-reforms-to-give-greater-security-for-11-million-renters

[2] https://www.gov.uk/government/news/landmark-reforms-to-give-greater-security-for-11-million-renters