Breaking Down the Renters Rights Bill

Breaking Down the Renters Rights Bill: Key Changes for Landlords

Since reforms to the private rented sector were first announced by the UK Government, many landlords have had concerns about how it will impact their property business. 

Deputy PM Angela Rayner has described the reforms as a positive move for good landlords, stating that it will be the “unscrupulous” landlords who will be the ones to lose out.

If you are a landlord wondering what the Renters Rights Bill (RRB) will mean to you, read on.

What are the key changes in the Renters Rights Bill?

The bill is set to introduce some significant changes to the private rented sector, including:

Abolishment of Section 21 “no fault” evictions

One of the biggest reforms is the plan to abolish Section 21 no fault evictions. Currently, landlords can legally evict tenants without providing a reason. Under the new Bill, landlords will only be able to evict tenants under reasonable circumstances. 

The reality of the changes shouldn’t have a negative impact on the large majority of landlords, as only a small number unfairly evict tenants. Reasons such as rent arrears, selling the property or the landlord moving into the property, will all still be grounds for eviction.

However, getting a possession order from the court can be more difficult for Section 8 compared to a Section 21. It is expected that improvements to the court system will be introduced to support landlords who legally evict tenants.

Restrictions on rent increases

Another change outlined in the RRB is the restriction on rent increases to one increase per year. Landlords will not be able to practice “rental bidding wars” to achieve higher rent than advertised. Tenants will have more rights to challenge what they deem to be unfair rent increases, as any rent increases should be in line with the market rates.

Again, these reforms should only impact a small minority of landlords who are charging unfair rent amounts. Most landlords do not use “bidding wars”, so the RRB reforms for rent increases shouldn’t be a concern for landlords practising fair rent increase processes.

More rights for tenants to keep pets

While some landlords prefer not to accept tenants with pets, many have already removed restrictions to ensure they have a bigger tenant pool. A huge proportion of households now have pets and landlords understand that having more flexibility around pets can work in their favour.

The reforms will allow landlords to charge tenants a fee for additional insurance to cover pet damage, so this will help many landlords.

All tenancies to be periodic

The changes will require all tenancies to move to periodic, rolling tenancies. While this will give tenants more freedom to move out, they will still be required to give the required notice. The length of notice required has not been confirmed yet but given the high demand for rental properties, it should still provide adequate time to find new tenants.

Awaab’s Law and Decent Homes Standard extended to the private rented sector

The RRB will extend both Awaab’s Law and the Decent Homes Standard into the private rented sector. Already introduced in the social housing sector, this will require landlords to investigate and rectify issues that are hazardous to the health and safety of tenants. For example, reports of mould or damp will need to be investigated and remedied within a set timescale. 

Many landlords would already do this without the newlegislation in place, so these landlords will not need to be overly concerned about the new requirements.

New property portal and ombudsman

Under the new rules, landlords will be required to register on a property portal, providing greater transparency of who is renting property out in the UK. Landlords will also be required to join an ombudsman, which will require a fee that is yet to be disclosed.

This will enable tenants past and present to submit claims against landlord, with an independent investigation. If landlords operate in compliance with all the correct legislation, it is unlikely that they will be negatively impacted by this.

When will the Renter’s Reform Bill be introduced?

The Bill is expected to be passed into law by the end of 2025, having passed through the House of Commons. For landlords, it will mean a few changes such as becoming members of an ombudsman and registering on the property portal but for the majority of landlords, their day-to-day activities will business as usual.