The Renters’ Rights Bill: what landlords and letting agents need to know

The Renters’ Rights Bill proposes substantial reform to Landlord & Tenant law in England. If passed, it will have a significant impact on landlords, letting agents and housing providers in both the private rented sector and supported housing. The Bill is expected to receive Royal Assent in Spring 2025. The new rules will first apply to the private rented sector, with changes to social housing following later.

The implementation date is not yet confirmed, but the government has said landlords and agents will be given sufficient notice before the legislation takes effect. It is likely though that we will see changes starting to come into force later this year.

Who needs to Take Note

• Private landlords
• Letting agents managing residential lettings
• Providers of supported or temporary accommodation on behalf of Local Authorities
• Private registered providers of social housing (later implementation)

What is Changing

End of Fixed-Term and Assured Shorthold Tenancies
The Bill abolishes fixed-term tenancies and assured shorthold tenancies. All tenancies will become periodic, linked to the rental period and not exceeding one month. Landlords will no longer be able to recover possession using section 21 of the Housing Act 1988. In future, possession can only be sought on statutory grounds set out in the amended Housing Act.

Updated Grounds for Possession
The Bill updates the existing grounds and introduces several new ones, including grounds for landlords intending to sell and for specific supported accommodation scenarios. Notice periods for possession will change. In some cases, they are extended, such as under the rent arrears grounds. In others, such as anti-social behaviour, landlords may act more quickly than under the current regime.

Rent Increases Through Statutory Procedure Only
The Bill removes the ability to increase rent through clauses in tenancy agreements. Instead, landlords must use the process in section 13 of the Housing Act 1988, which includes serving notice on a prescribed form and gives tenants the right to challenge the increase before the First-tier Tribunal, which would then determine the market rent for the property.

Tenants’ Right to Request a Pet
Tenants will have a right to request permission to keep a pet. Landlords must consider the request and can only refuse if there is a reasonable basis. This could include a restriction in the superior lease or insurance policy. Landlords may also impose conditions such as requiring the tenant to hold pet damage insurance or to cover the cost of the landlord taking out a policy.

Written Tenancy Information Must be Provided
Landlords will be required to provide tenants with a written statement of key tenancy terms and information before the tenancy begins. This will be in a prescribed format and may be similar to the approach currently used in Wales. Failure to provide the required information may lead to financial penalties.

Ban on Discrimination and Rental Bidding
Landlords must not refuse tenancies on the basis that a prospective tenant has children or receives benefits. The Bill also prohibits inviting or accepting offers of rent above the amount stated in an advertisement.

New Redress Scheme and Database
Landlords will be required to join a redress scheme approved by the Secretary of State. A national database of landlords and properties will also be introduced. A property must be registered on the database before it can be marketed or let.

How to prepare

Although the Bill is not yet in force, landlords and letting agents should begin preparing now. Once the new regime is introduced, it will apply to all tenancies in the private rented sector, including those already in place.

Actions to consider include:

• Check whether rent increases have been actioned and that tenancies are at market rent. Under the new rules, rent can only be increased by notice under section 13 of the Housing Act 1988.
• Where landlords wish to remove a tenant, consider serving a section 21 notice before the law changes. A valid notice served in advance will remain effective and possession claims can still be issued within three months of the commencement date.
• Ensure all tenancy paperwork is in place and compliant. This includes deposit protection, prescribed information, gas safety and energy performance certificates, and the current How to Rent guide.
• Review superior leases and insurance policies to confirm whether they would prevent consent to pets.
• For new tenancies, consider using periodic agreements from the outset. As tenants will have greater security under the new law, it may be appropriate to require a guarantor where suitable.

Further updates and resources

To stay up to date, landlords and agents can refer to the following official sources:

• A fairer private rented sector – GOV.UK
• Renters’ Rights Bill 2024-25 – Parliament Tracker
• Department for Levelling Up, Housing and Communities

Formal guidance and regulations will be published in due course once the Bill receives Royal Assent.

To stay up to date, landlords and agents can refer to the following official sources:
– https://www.gov.uk/government/publications/a-fairer-private-rented-sector
– https://bills.parliament.uk/bills/3438
– https://www.gov.uk/government/organisations/department-for-levelling-up-housing-and-communities

Formal guidance and regulations will be published in due course once the Bill receives Royal Assent.