Upcoming Changes to Landlord Regulations: The Renters’ Rights Bill

Upcoming Changes to Landlord Regulations: The Renters’ Rights Bill

The Renters’ Rights Bill is currently progressing through Parliament and is expected to bring significant changes to the private rental sector. While the Bill has not yet received Royal Assent, landlords should be aware of the key proposals and begin preparing for compliance once the new regulations come into effect.

Key Changes for Landlords

If passed in its current form, the Bill will introduce the following major reforms:

1. Abolishment of Assured Shorthold Tenancies & Section 21 Notices

One of the most significant changes will be the removal of assured shorthold tenancies (ASTs) and the abolition of Section 21 ‘no-fault’ evictions. Instead, all tenancies will become periodic from the outset, meaning tenants will have greater security while landlords must rely on alternative legal grounds to regain possession.

2. Periodic Tenancies from the Start

Under the proposed legislation, tenancies will automatically be periodic, allowing tenants to serve two months' notice at any time to end their agreement.

3. Revised Section 8 Grounds for Possession

New and updated Section 8 grounds will be introduced, allowing landlords to regain possession in certain circumstances, such as selling the property. However, specific details on how these grounds will be applied are yet to be finalised.

4. New Private Sector Landlord Ombudsman and Database

A new ombudsman service will be introduced to handle disputes between landlords and tenants. Additionally, a central database of private landlords will be established, aiming to improve transparency and accountability in the sector.

5. Rights for Tenants to Keep Pets

Landlords will no longer be able to unreasonably refuse a tenant’s request to have a pet. This change aligns with the government’s efforts to make rental properties more accommodating for tenants with pets.

6. Ban on Discrimination Against Tenants on Benefits or with Children

It will become illegal for landlords and letting agents to refuse applications from prospective tenants simply because they receive housing benefits or have children.

7. Prohibition of Rental Bidding Wars

Landlords and letting agents will be required to publish a set asking rent. They will be prohibited from encouraging or accepting bids above the advertised rental amount.

8. Changes to Rent Increase Rules

Landlords will no longer be able to impose rent increases through tenancy agreements. Instead, any rent increase will need to follow the Section 13 process under the Housing Act 1988, requiring at least two months’ notice.

9. Limits on Rent in Advance Payments

Restrictions will be placed on how much rent can be taken in advance, preventing landlords from demanding excessive upfront payments.

10. Application of the Decent Homes Standard

The Bill aims to extend the Decent Homes Standard to the private rental sector, ensuring properties meet minimum living conditions. ‘Awaab’s Law’ will also be introduced, setting legal timeframes for landlords to address serious hazards, particularly damp and mould issues.

What This Means for Landlords

While the exact timeline for implementation is yet to be confirmed, the government has stated that there will be a transitional period after Royal Assent to allow landlords and letting agents time to adapt. The provisions may be introduced in stages, but it is essential for landlords to stay informed and begin planning for the changes.

As the Bill progresses, we will continue to monitor developments and provide updates to ensure landlords have all the information they need to remain compliant with the new regulations.

For more details, visit the government’s official guide: Guide to the Renters’ Rights Bill.