H&H Land & Estates Lettings Manager, Pauline Carrera-Silva, clarifies the key changes that landlords must plan for when the new Renter’s Rights Bill comes into force in Spring 2025
The Renters' Reform Bill introduced by the Conservative Government in May 2023 aimed to create a fairer, more balanced rental market for the 11 million people who live in rented accommodation, and for the 2.3 million landlords who let their properties in the UK.
The Labour Government’s Renter’s Rights Bill passed in September retains many of the original Bill’s provisions, but also strengthens tenants’ rights in key aspects deemed to offer them greater protection against potentially unfair actions by their landlords:
Abolition of "No-Fault" Evictions (Section 21)
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One of the most notable changes under the bill is the end of Section 21, which has allowed landlords to evict tenants without providing a reason. Under the new system, landlords will only be able to evict tenants in specific circumstances, such as non-payment of rent, or breaches of the tenancy agreement or selling of the property.
Landlords will need to familiarise themselves with the new eviction procedures and the grounds for repossession. Proper record-keeping, such as documenting rental payments and tenant conduct, will become essential in defending legitimate claims for possession.
Improved Grounds for Possession
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While the abolition of no-fault evictions offers greater security to tenants, the bill also provides landlords with clearer and more efficient legal routes for regaining possession of their properties. For example, landlords can evict tenants if they need the property for themselves or their family, or plan to sell it. Importantly, these grounds are now clearer and designed to ensure a fairer process for both parties.
Reform of Tenancy Structures
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The bill proposes the introduction of periodic tenancies, meaning fixed-term tenancies will be phased out. It is proposed that all tenancies will effectively be a periodic tenancy (month to month) with the tenant having the right to occupy the property for 12 months.
This will allow tenants to leave their homes with only two months’ notice, while landlords will be able to end the tenancy with a clear legal basis.
This provision will come into immediate effect when the legislation, the earliest anticipated date for this is Spring 2025. Landlords will need to get used to periodic tenancies, which give tenants more flexibility. While this can reduce the certainty of long-term rental income, landlords will still be able to regain possession through legal means, provided they follow the correct procedures.
Improvements to Property Standards
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Another key element of the bill is the introduction of the Decent Homes Standard to the private rental sector, currently only applicable to social housing.
Landlords will be responsible for ensuring that their properties meet the Decent Homes Standard, which may require investments in property maintenance and improvements, particularly to older properties. Failing to meet these standards can result in penalties and possible intervention by local authorities.
Establishment of a Landlord Ombudsman
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To further regulate the private rental market, the bill introduces a new, independent Landlord Ombudsman to handle disputes between tenants and landlords, ensuring that issues can be resolved quickly and fairly without resorting to lengthy and costly court proceedings.
The Ombudsman will offer a new channel for tenants to raise disputes, and landlords will need to ensure they have clear communication with tenants and adopt a proactive approach to resolving issues before they escalate.
Rental Price Control Measures
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While the bill stops short of imposing rent caps, it introduces measures aimed at preventing excessive rent increases. Rent hikes will need to be proportionate, and tenants will have the ability to challenge unfair rent increases through the new system.
Preparing for change
While the Renters' Rights Bill aims to enhance tenant rights, it also seeks to provide a fairer and more structured environment for landlords, but landlords operating in the private rental sector will need to familiarize themselves with these changes, ensure their properties comply with new standards, and adapt their management practices to align with the evolving legal landscape.
H&H Land & Estates has been helping landlords manage their properties across the north of England for many years, and can offer expert support and advice to any landlord seeking to prepare for the introduction of the Renter’s Rights Bill in just a few months’ time.