Tenants’ rights will strengthen this year and sooner than you think. The Renters’ Rights Bill is making its final passage through the House of Lords, with the possibility of implementation as an Act just weeks away.
Conversations within the private rental sector have switched from how the final Act will look, to how well the industry is prepared to adapt to change. An interesting insight came from a recent webinar on the Renters’ Rights Bill, hosted by Goodlord and legal expert David Smith.
More than 1,200 landlords and letting agents joined live to hear the latest about the Bill’s progress and implications. The key takeaway was a lack of clarity, with agents and landlords feeling ‘far from prepared’ for the introduction, with ‘many areas of confusion and concern’.
The hosts used the webinar to conduct a snap poll among the 400 landlord participants, finding 1 in 4 were considering exiting buy-to-let or selling a portfolio they own due to the incoming reforms. This was a higher number when compared to a similar poll conducted in autumn 2024.
The Bill’s reporting and committee stages have seen a number of amendments, which landlords may not have noticed. Many of those pertain to strengthening tenants’ rights but it is imperative to know how lettings law will change this spring in order to assess the viability of any buy-to-let ventures.
Here’s a recap incoming tenants’ rights:
- Capped upfront rental payments: tenants will enjoy a new cap that means they can’t be charged more than one months’ rent upfront before a tenancy starts. Landlords will no longer be able to request 6 months or a year’s rent in advance.
- New student protection: a late Bill amendment will ease pressure on student tenants, who are frequently hassled to sign a lease for a new house very early in an academic year. Landlords will be banned from making students sign a tenancy agreement that’s more than six months in advance of moving in.
- Ban on ‘no fault’ evictions: tenants will enjoy more secure tenancies thanks to the abolition of Section 21 possession notices. Landlords will need a valid reason for asking a tenant to leave, as set out in a Section 8 notice.
- Protection from landlords selling up or moving in: one of the eviction amendments covers the situation where a landlord may want to regain possession to sell the property, move in themselves, or move in a family member. In this respect, tenants will gain new protection, thanks to a new 12-month period when a landlords can’t serve notice for the aforementioned grounds. When it is legally permissible to do so, the landlord must give four months’ notice if they want to sell the property, move in themselves, or move in a family member.
- An improved way to hold landlords accountable: the Renters’ Rights Bill will see the creation of a new private rented sector landlord ombudsman. Tenants will be able to lodge a complaint about a landlord, with the promise of a quick, fair, impartial and binding resolution.
- Better protection against unscrupulous rent rises: the Bill states all rent rises must be served using a Section 13 notice, and they will only be allowed once per year to the market rate (the price that would be achieved if the property was newly advertised to let). Additionally, at least 2 months’ must be given and rent review clauses will be banned. Tenants will be able to challenge rent rises at the First-tier Tribunal.
- More rights to keep a pet: tenants will be in a better position to keep a dog or a cat in a rental property. The Bill’s wording makes it clear that landlords ‘must consider and cannot unreasonably refuse’ a tenant’s request to keep a pet.
- End to certain discriminations: the Bill makes it easier for tenants with children and renters in receipt of benefits to secure a privately rented property. It will become illegal for landlords and letting agents to discriminate against these two groups.
- More flexibility over when to end a tenancy: all fixed-term tenancies will switch to period tenancies by default. This hands more power to tenants and will allow them to quit a property, perhaps if it’s not up to standard or their circumstances change, by giving two months’ notice.
- More leniency for tenants in arrears: tenants will have more time to repay arrears and remain in their rented home once the Bill becomes an Act. This is a result of the mandatory threshold for eviction increasing from 2 to 3 months’ arrears. There will also be an increase to the notice period, rising from 2 weeks to 4.
- An end to gazumping: the Bill will outlaw tenants being pitted against each other in order to force the rental price up. Instead, landlords and letting agents will have to publish an asking rent, with a ban on asking for, encouraging or accepting any bids above this price.
LandlordBuyer is monitoring the Renters’ Rights Bill’s progress as it heads towards Royal Assent. Although further amendments are not likely, it is possible. Future blogs will report on changes and enactment, or you can contact us to discuss how the Bill will affect your landlord journey.