The Renters' Rights Bill: What It Will mean for Tenants and Landlords in 2025?

The UK rental market is abuzz with talk about the Renters' Rights Bill, the reworked version of the Renters' Reform Bill which was first read in the House of Commons in May 2023. This landmark legislation will change the relationship between tenants and landlords across England. Whether you’re a tenant looking for clarity or a landlord navigating upcoming regulations, here’s everything you need to know.

What Is the Renters' Rights Bill?

The Renters' Rights Bill is a government initiative aimed at creating a fairer rental system. It introduces significant changes designed to protect tenant rights while maintaining a balanced framework for landlords.

The Renters' Rights Bill includes several major provisions:

1. Abolition of “No-Fault” Evictions: Section 21 evictions, which allow landlords to remove tenants without providing a reason, will be abolished. This move offers tenants greater security and stability in their homes.
2. Introduction of a Decent Homes Standard: For the first time, the private rental sector will be required to meet a Decent Homes Standard. This ensures that all rented properties are safe, warm, and free from health hazards.
3. Creation of a Single System of Periodic Tenancies: The bill eliminates fixed-term tenancies, replacing them with periodic tenancies that allow tenants to leave with two months' notice, or landlords to regain possession under reasonable circumstances (more on those later).
4. Strengthened Rules for Landlords: New measures will make it easier for landlords to recover properties for legitimate reasons, such as selling or moving back into the property. However, they must follow strict protocols to ensure fairness.
5. Banning Blanket Bans: The bill bans blanket restrictions on renting to families with children or those receiving benefits, promoting inclusivity in the rental market.

A Simplified Dispute Resolution System: A new ombudsman service will provide free and impartial resolution for disputes, reducing reliance on costly court proceedings.

What Does the Renters’ Rights Bill Mean for Tenants?

For tenants, the Renters’ Rights Bill is a significant win. Here are the benefits you can expect:

• Greater Security: With Section 21 evictions abolished, tenants can feel more secure in their homes.
• Improved Living Standards: The Decent Homes Standard ensures all properties meet a baseline level of quality, such as having modern facilities and being in a reasonable state of repair.
• Easier Disputes: Access to an ombudsman service simplifies resolving issues without the hassle and cost of court involvement. The ombudsman will have the authority to compel landlords to issue an apology, provide information, take remedial action, and/or pay compensation.
• The right to have pets: Tenants will have the right to request keeping a pet in the property, as well as challenge unfair decisions. Landlords will not be able to unreasonably withhold consent, but will be able to require tenants to have pet insurance.

No more bidding wars: Landlords won't be able to accept offers above the advertised asking price. This will prevent tenants from receiving unexpected price hikes after viewing a property.

What Does the Renters' Rights Bill Mean for Landlords?

Landlords will also see changes, some of which will require adjustments to their current practices:

• Stronger Obligations: Landlords must ensure properties meet the new Decent Homes Standard. This could mean refurbishing kitchens that are older than 20 years old, or bathrooms more than 30 years old, or updating heating systems and insulation in their properties.
• Clearer Grounds for Possession: While “no-fault” evictions are removed, landlords still have mechanisms to regain property under valid conditions, such as if they intend to sell the property, or have a family member or themselves move in. However, they cannot use these grounds within the first 12 months of a tenancy and must provide four months’ notice to tenants.
• Change to Periodic Tenancies: Adjusting from fixed-term to periodic tenancies will require careful management of tenant agreements.
• The ability to require insurance for pet damage: This is to provide landlords with reassurance that their tenants will be responsible for any damage caused by having a pet. 
• Private Rented Sector Database: Landlords must register on the Private Rented Sector Database to understand their legal obligations, demonstrate compliance, and use certain possession grounds.

No discrimination: Prohibit landlords and agents from discriminating against prospective tenants who receive benefits or have children, ensuring fair treatment for all when seeking housing.

When Will the Renters' Rights Bill Become Law?

As of now, the Renters' Rights Bill has not yet been passed into law. However, based on its current pace in parliament, it is expected to move forward in spring 2025. The new government has expressed a strong commitment to pushing this legislation through. You can keep track of the progress of the bill on the bill's webpage.

FAQs

What is the Renters' Rights Bill?

The Renters' Rights Bill is a proposed law aimed at creating a fairer rental system in England, protecting tenant rights, and setting clear guidelines for landlords.

What is a Section 21 notice?

“No-fault” evictions (Section 21) allow landlords to remove tenants without providing a reason. The Bill abolishes them to provide tenants with greater security.

What is a Section 8 notice?

A Section 8 refers to a legal process under the Housing Act 1988 in England and Wales that allows a landlord to regain possession of their rental property. Unlike Section 21, which is being abolished under the Renters' Rights Bill, Section 8 requires landlords to provide a valid reason (or "grounds") for eviction, such as significant ren\t arrears or when a landlord intends to live in the property.

What is the Decent Homes Standard?

It is a new requirement ensuring all rental properties are safe, warm, and free from health hazards, with modern facilities and effective repairs.

How will tenancy agreements change under the Bill?

Fixed-term tenancies will be replaced by periodic tenancies, allowing tenants to leave with two months' notice and landlords to regain possession under specific circumstances.

Can tenants have pets under the new rules?

Yes, tenants can request to keep pets, and landlords cannot unreasonably withhold consent. Landlords may require pet insurance to cover potential damages.

Will landlords be able to evict tenants under the new rules?

Yes, but only for valid reasons like selling the property or personal use, and strict notice periods and protocols must be followed.

Why choose HomeQuarters?

Navigating these changes can feel daunting, but we’re here to help. As an experienced and award-winning provider of stunning rental apartments in London’s most sought-after neighbourhoods, we ensure our properties meet the highest standards of comfort and quality. All of our apartments are also pet-friendly, and always have been! Find your next home today.

If you’d like to read about the Renters’ Rights Bill in more detail, you can do so on the government's website.