Understanding the Renters Rights Bill

What is the Renters' Rights Bill?

The Renters’ Rights Bill is a piece of upcoming legislation designed to deliver “long overdue” reforms to the Private Rented Sector (PRS). Its primary goal is to give tenants more security to stay in their homes and more freedom to leave substandard properties. 

The Bill will: 
Abolish fixed-term assured shorthold tenancies (ASTs) - as a result of this, all tenancies will become periodic

Limit rent increases - the shift to periodic tenancies means Section 13 notices will be the only way for landlords to raise the rent; these can only be served once per year

Abolish Section 21 evictions - landlords will no longer be able to serve “no-fault” notices to regain possession of their properties.

Expanded Section 8 possession grounds - the Government is adding and updating both mandatory and discretionary grounds due to the abolition of Section 21.

Ban rental bidding wars - landlords and agents can’t accept offers above the advertised price

Introduce a landlord ombudsman - this will help resolve disputes between landlords and tenants impartially

Create a private rented sector database - designed to compile information about landlords and properties and provide visibility on compliance

Apply the Decent Homes Standard - all rental properties must meet minimum quality standards

Prohibit discrimination - landlords can’t refuse tenants on benefits or
with children.

WHAT SHOULD LANDLORDS BE DOING NOW TO PREPARE FOR RENTERS’ RIGHTS BILL?
The Bill is unlikely to take effect until Spring 2025 however we recommend the following:

Consider Rent Protection Insurance For landlords, the worst-case scenario is losing access to their rental property or the income it generates. While this risk already exists, recent changes in the law may mean that recovering possession of your property if a tenant fails to pay rent could take longer than before. The good news is, that you can safeguard yourself against this potential issue by investing in a rent protection product. 

Be Selective When Choosing Tenants. Most landlords agree that securing a reliable tenant is far more important than anything else. Take the time to carefully choose the right tenant for your property, and consider working with an agency like Elliott James, which boasts one of the most thorough and rigorous tenant referencing systems in the industry.

Maximise Your Property’s Appeal. Top-quality rental properties always command the highest rents and attract the best tenants. Ensure your property is in excellent decorative condition and looks appealing to prospective tenants. If you’ve noticed issues like mold or damp, now is the time to address them—especially before the new Decent Homes Standard is introduced to the private rented sector.