The Renters’ Rights Bill is the most significant reform the private rented sector has seen since the Housing Act 1988. The primary goal is to give tenants more security to stay in their homes and have more freedom to leave substandard properties. The Bill will impact all Assured Shorthold Tenancies, including both new and existing tenancies and there will be significant changes that will be implemented as soon as the Bill becomes enforceable.
The Bill concluded the committee stage with the House of Lords on 15th May, and it is now approaching the final stages. The bill was scrutinised for over 30 hours and it seems to have largely remained the same as the original proposals. The Bill now moves onto the report stage, where the Bill will be further scrutinised and additional amendments can be made, this will be quickly followed by the third and final reading before it moves from the Commons to be passed by the House of Lords. It is assumed it will pass Royal Assent in July and become law some time between October 2025 and February 2026.
The main changes are:
- Fixed terms tenancies will end
All tenancies will have no end date and will become a rolling or ‘periodic’ tenancy. Tenants will be able to stay in their home until they decide to end, providing 2 months’ notice.
- Section 21 ‘no fault’ evictions will be abolished
New section 8 grounds introduced to enable you to serve notice under different circumstances. This will ensure landlords can recover their property when reasonable.
- Rent Increases
Any pre-agreed rent increases will not be valid. Rent can be increased one per annum and must be in line with market rates. A section 13 notice must be serviced giving a minimum of two months’ notice of the increase. Tenants will be able to challenge and appeal excessive above market rents via independent first-tier tribunal.
- Advance payments
Landlords will be prohibited to demand more than one month’s rent in advance. Tenants must switch to monthly payments. Rules on students are still being discussed.
- Tenants and Pets
Landlords must consider and cannot unreasonably refuse pets. You will only be able to refused a tenant’s pet request under certain circumstances. Landlords will be able to require pet insurance to cover any damage to their property.
- Prohibit Discrimination
It will be illegal for landlords to refuse tenants with children or receiving benefits.
- Introduce Private Rented Sector Landlord Ombudsman
All private landlords will be required by law to join, including those who use a managing agent. Tenants will be able to use the service for free and obtain quick, fair impartial and binding resolutions for tenants’ complaints about a landlord’s actions or behaviours. Landlords will also have access to guidance and support to help them improve their complaint handling practices.
- Introduce Private Rented Sector Database
All landlords will be legally required to register themselves and their properties on the database and could be subject to penalties if they market or let out a property without registering it and providing the required information. It will help landlords understand their legal obligations and demonstrate compliance.
- Rental bidding
Rental bidding will be illegal and landlords and letting agents will be prohibited from asking for, encouraging or accepting any bids above the advertised price.
- Decent Homes Standard (DHS)
Decent homes standard will be introduced to ensure tenant benefit from homes that are safe and decent. Regulations will be made setting out DHS requirements and provide local councils with effective and proportional enforcement powers.
- Awaab’s Law
Awaab’s Law will be extended to private rented homes. It will set clear legal expectations about timeframes within which landlords must address hazards, such as damp and mould. If landlords do not comply, tenants will be able to bring enforcement action against them through the courts.
Landlords and tenants are encouraged to stay updated on the Renters’ Rights Bill to understand how these changes might impact their responsibilities and rights. Castlereagh will be keeping informed with the progress of the Bill and how it will affect our portfolio and Landlords. We will be revising our processes and procedures in order to prepare for the Bill and ensure we are ready to implement the new rules when they become law.
You can also find more detailed information here: https://www.gov.uk/government/publications/guide-to-the-renters-rights-bill
