Key Provisions of the Renters’ Rights Bill
There has been significant media attention and discussion surrounding the Renters Rights Bill. We believe that many of these rule changes will have minimal impact on how responsible landlords currently operate; however, we will strive to keep landlords updated as the bill proceeds through the House of Lords. It is envisaged that the bill will come
The new Bill should not raise concerns for responsible landlords and agents who adopt a proactive stance, offer safe, warm, and secure housing, and treat tenants with fairness.
We have included a quick read below to catch up, followed by a little more in depth opinion for landlords who would like more information. We will keep you up to date with timely updates as the bill proceeds.
Quick Read
Tenancy and possession
- End of Section 21, the so-called ‘no fault eviction’. Section 21 notices served before the commencement date will continue to be valid until they expire.
- Abolish fixed-term tenancies. All tenancies to become periodic with no more than a month at a time for the periods. Tenants can serve two months’ notice to end the tenancy, at any time, and via any written method.
- New ‘Landlord circumstance’ grounds. A new ground where the landlord needs to sell will be introduced, as well as an amended ground where the landlord or their family needs to move in. Landlords won’t be able to use these grounds in the first 12 months of a tenancy, will need to give four months’ notice, and can't market the property for 12 months after the notice expires or the claim is filed at court.
- Mandatory rent arrears ground amended - requiring three months’ arrears and four weeks’ notice.
- A new student possession ground – which will require prior notice from the landlord and only applies to HMOs let entirely to students.
- Ban discrimination against tenants in receipt of benefits or with children when choosing who to let to.
Setting rents
- Ban rental bidding wars – preventing landlords and agents from encouraging or accepting rents above the listed rate.
- Limit in-tenancy rent rises to a single annual increase capped to whichever is lowest of market rates or the amount proposed by the landlord. Landlords must give two months’ notice. Tenants can challenge this via the First-tier Tribunal. Any increase can't happen until the tribunal’s made its decision.
Standards and enforcement
- Introduce a Decent Homes Standard to the private rented sector with fines of up to £7,000 for failing to meet standards
- Extend Awaab’s Law to private renting – setting clear timeframes within which landlords must make homes safe where they contain serious hazards
- Create a digital private rented sector database with information for landlords, tenants, and councils
- Local authority enforcement - give local authorities greater powers to investigate and enter PRS properties and substantially increase the financial penalties for non-compliance
Resolving disputes
- Set up a new ombudsman service that will provide fair, impartial and binding resolution to both landlords and tenants, reducing the need to go to court.
- Support for landlords who want to initiate disputes will not be through the ombudsman but the Government has confirmed they are looking at ways to allow this.
A more in-depth opinion
Key changes include
A 12-month protection period at the start of tenancies, during which landlords cannot evict tenants unless there is a breach. A longer four-month notice period for landlords who intend to sell or move into the property.
Abolition of Section 21 Evictions
Section 21 “no-fault” evictions will be replaced by an updated Section 8 process, allowing landlords to regain possession under specified grounds.
Shift to Periodic Tenancies
All tenancies will convert to periodic agreements, meaning they will no longer have fixed terms. Tenants’ notice period will be increased to “ two months” notice, while landlords must follow the Section 8 procedure for eviction if the tenant does not agree to vacate on request or by mutual agreement
Strengthened Grounds for Possession
Anti-social behaviour (ASB) and criminal activity will permit landlords to initiate possession proceedings immediately.
Rent arrears thresholds will rise from two months to three months, yet landlords can still attach a money order to cover the arrears. Putterills suggests that landlords look into a rent guarantee product to alleviate any risks linked to this extended arrears period if they have concerns.
New Compliance and Property Standards
The Decent Homes Standard and Awaab’s Law will extend to private rentals, requiring landlords to address issues such as damp and mould promptly.
Landlords must register properties in the Private Rented Sector Database, ensuring greater transparency and accountability.
Limiting Rent Increases
Rent increases are limited to one per year and must correspond with market rates. They will be communicated through a Section 13 notice, providing a two-month notice period. This is in line with practices most landlords and agencies follow. As the current legal framework only annual rent increases unless the terms and conditions of the AST specify otherwise, detailing that increases could occur more frequently or be of a fixed amount, irrespective of market rates.
Additional Tenant Protections
The right to request a pet, which cannot be unreasonably refused, provided tenants arrange suitable insurance. The banning of discriminatory practices, such as rejecting tenants on benefits or with children. However, it remains the landlord's decision which tenant they would like to accept, as long as they are not being discriminatory.
How Putterills Supports Landlords
At Putterills, we’re here to help landlords adapt to these changes by implementing practical solutions and offering tailored advice.
1. Careful Tenant Selection and Referencing
Putterills has always spent considerable time and effort at the commencement of a tenancy to ensure that we select the best tenant in the market at that time. This thorough selection and vetting process is now more important than ever. Our robust referencing process includes credit checks, rental history reviews, and affordability assessments to help landlords select reliable tenants who are likely to respect the property and fulfil their obligations.
2. Rent Guarantee and Legal Protection Insurance
To mitigate risks associated with the increased arrears threshold, we recommend landlords consider investing in rent guarantee insurance. This protects against income loss and ensures landlords can meet financial obligations, even in challenging circumstances. These products often include legal protection and streamlining the eviction process where necessary.
3. Tenancy Agreement Updates
We are proactively updating tenancy agreements to include required notices and align with the new periodic tenancy model. This ensures landlords are compliant from day one of the new system.
4. Property Standards Compliance
Our regular property assessments help landlords meet the Decent Homes Standard and Awaab’s Law. This includes guidance on repairs, maintenance schedules, and risk assessments to ensure properties remain safe and habitable.
5. Supporting Section 8 Applications
Our experienced team is familiar with the Section 8 process and is ready to assist landlords in meeting legal requirements should the situation arise.
The bill has to go through the Committee stage, which is set for 28 November, when a committee of MPs will scrutinise the bill line by line. This provides the first opportunity to propose, debate and vote on suggested amendments and new clauses.
There will then be the following stages
Call for evidence A Public Bill Committee in the Commons can take oral and written evidence on the bill.
Report Stage All MPs will have an opportunity to table, debate and, if needed, vote upon further suggested amendments and new clauses to the Bill.
Third Reading: The final chance for the Commons to debate the contents of the Bill. It usually takes place immediately after the Report Stage. No amendments are possible.
