Landlords and tenants: are you prepared for Renters’ Rights Bill changes?
If you are a landlord or tenant you may be asking, ‘What is happening with the Renters’ Rights Bill?
In a nutshell the Bill which will apply to the private rental market is in its final parliamentary stages. It has been completed between the House of Commons and House of Lords and the next step is for the Royal Assent which is expected imminently.
What does this Bill mean for landlords and tenants? It is expected to reshape the private rental sector by bringing in a set of sweeping changes – for higher volume urban properties, and nationwide. The effect? One prediction is that some landlords may sell, while others may face increasing pressure to improve the standard and energy efficiency of their properties.
Seven key changes expected in the Renter’s Rights Bill:
Abolition of Section 21 ‘no-fault’ evictions
Landlords will no longer be able to evict tenants without a valid reason. Evictions must now rely on revised Section 8 grounds, such as:
- Persistent rent arrears which will increase from two months to three months of arrears.
- Sale of property (a key inclusion).
- Landlord or family occupation.
- Serious anti-social behaviour.
End of fixed-term tenancies
- All tenancies will become open-ended periodic tenancies, offering tenants greater security without fear of tenancies being renewed.
- Tenants will be able to leave with 2 months’ notice.
Rent controls
- Rent increases limited to once per year with two months’ notice.
- Tenants can challenge excessive increases via the First-tier Tribunal and must do so within 28 days of the notice.
Pets
- Tenants have the right to request a pet.
- Landlords cannot unreasonably refuse, but may require pet insurance.
Increased homes standard
- Extended to the private rental sector for the first time.
- Properties must be safe, free from damp, and have effective heating.
Rent bidding ban
- Landlords and agents cannot invite offers above the advertised rent.
Private Rented Sector Ombudsman
- A new independent body will handle disputes between tenants and landlords.
When is the Bill going to happen?
As the Renters’ Rights Bill is expected to come into force in early 2026. The recommendation from the specialist property lawyers at HM3 Legal is: Be prepared by taking pre-emptive action now.
Mike Richards, Senior Associate at HM3 Legal comments:
“The new Renter’s Rights Bill proposes all residential landlords and private rented accommodation will be recorded on a central database. Access will be granted to landlords, tenants and local authorities.
“While local authorities will have enforcement powers when investigating any breaches (and with many already experiencing stretched budgets), only time will tell how this new Bill will work in practice.”
How will this Bill affect your rental property or property portfolio?
If you are unsure about next steps, or require specialist legal support, please contact us for a free, no-obligation discussion to help you to prepare for the changes.
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