Tenants and landlords, are you ready for the new Renters’ Rights Bill?

Later this year, the Renters’ Rights Bill is expected to become law and is seen as the most significant reform the private rented sector (PRS) has undergone since the Housing Act 1988. First introduced to Parliament on 11 September 2024, the Bill has wide-ranging implications for landlords, tenants, and letting agents alike.

The Bill will abolish fixed-term assured shorthold tenancies (ASTs); as a result, all tenancies will become periodic. Rent increases will be limited, and the shift to periodic tenancies means Section 13 notices will be the only mechanism for landlords to raise the rent—these can only be served once per year.

Section 21 evictions will be abolished, meaning landlords will no longer be able to serve “no-fault” notices to regain possession of their properties. However, Section 8 possession grounds will be expanded, with the Government adding and updating both mandatory and discretionary grounds to compensate for the abolition of Section 21.

Landlords and agents will no longer be permitted to accept offers above the advertised price, effectively banning bidding wars. A landlord ombudsman will be created to help resolve disputes between landlords and tenants impartially.

Landlords and their properties will need to be registered on a central database to improve visibility and ensure compliance. Additionally, the Decent Homes Standard will be introduced for all rental properties, requiring them to meet minimum quality standards.

Landlords will no longer be able to refuse tenants who are on benefits or have children. They also cannot unreasonably refuse tenants with pets, although they may require tenants to take out insurance to cover potential damages.

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