The Renters’ Rights Bill is expected to become law after Easter this year and is expected to take effect between July and October 2025.
What is the Renters’ Rights Bill?
The Renters’ Rights Bill is a proposed piece of legislation designed to strengthen legal protections for tenants in the UK. This bill’s primary goal is to address power imbalances between landlords and tenants by introducing new legal obligations for landlords and protecting the rights of tenants to live in safe, stable, and affordable homes.
What is the most recent update?
The Renters’ Rights Bill has advanced its second reading in the House of Lords and is currently undergoing the Committee Stage as of 16th April, which is a crucial phase to becoming law.
Once this stage is completed, it will proceed to the Report Stage, followed by the Third Reading. If all goes well, this bill will change all tenancy agreements, landlords’ obligations and tenants’ rights in the country.
What is included in the Renters’ Rights Bill?
The bill will:
- Abolish Section 21 evictions: landlords will no longer be able to evict tenants with “no-fault” notices
- Abolish fixed-term assured shorthold tenancies (ASTs): tenancies will now become periodic
- Limit rent increases: Because all tenancies will be periodic, Section 13 notices will be the only way for landlords to raise rent, and this can only be served once yearly
- Deposit reform: Tenants will no longer need to raise a new deposit before receiving their old deposit from their previous home.
- Ban rental bidding wars: landlords and estate agents can no longer accept offers above the listed rent amount
- Introduce landlord ombudsman: This body will help resolve disputes between landlords and tenants impartially
- Create a private rented sector (PRS) database: this database is designed to compile information about landlords and properties and provide visibility on compliance
- Apply Decent Homes Standard: all rental properties must meet the minimum quality standards set
- Criminalise discrimination: landlords can no longer refuse tenants on benefits, with children or with pets
- Allow renting with pets: landlords can no longer unreasonably refuse tenants with pets, but can require them to take out insurance to cover damages to the property
Key changes from the Renters’ Rights Bill
Abolishing section 21 “No-fault” evictions
One of the most important changes from the bill is the abolition of Section 21, usually referred to as “no-fault” evictions. This means landlords will no longer be able to end tenancies without providing a valid reason, such as anti-social behaviour, rent arrears, or the desire to move into/ sell the property.
While this initiative is welcomed by tenants and tenants’ rights advocacy groups, some landlords are concerned about how this may affect their ability to regain possession of their properties. To address these concerns, the bill will:
- Introduce stronger grounds for possession of property: landlords will be able to regain possession for reasons like moving back to the property or selling it.
- Reform court processes: A more efficient court system to prevent delays in processing disputes or evictions will be discussed
No more fixed-term tenancies
Under the new bill, fixed-term tenancies will be removed, and all tenancies will be periodic. Tenants will be given 2 months’ notice to leave the property.
No more bidding wars and unreasonable rent increases
To protect tenants from sudden price hikes and provide more financial stability, the new bill will put stricter regulations on rent increases. Landlords will be able to increase rent once a year, where any increases must align with market rates.
Rental bidding wars will also be prohibited. Properties must be listed with a clear asking price, and it will now be illegal to accept offers higher than the listed price. This change aims to prevent inflated rental prices in a competitive period or market.
Deposit reform
With the new bill, the government is planning to introduce a lifetime deposit system, where tenants only have to pay a deposit fee once. This will reduce the financial burden on tenants moving home, as they will no longer need to raise a new deposit before receiving their old deposit funds from their previous home.
