The Renters’ Rights Bill is currently making its way through parliament. It is expected that the Bill will receive royal assent by summer 2025, with many of the new rules becoming law over subsequent months.
The legislation represents a significant overhaul of the private rental sector in England and Wales and will bring various changes for landlords of private residential properties.
It is likely that landlords will have to register on a new portal, called the Private Rented Sector Database, with non-compliance with the new rules resulting in various penalties, including criminal sanctions.
In this blog, our experienced Landlord and Tenant solicitors in Marylebone round up the main provisions of the Renters’ Rights Bill and consider how it will affect private landlords.
1. No-fault evictions.
Currently, landlords can ask tenants to move out of a property without giving a reason under section 21 of the Housing Act 1988 (known as ‘no-fault evictions’). Tenants have two months to vacate the property before a landlord can apply for a court order to evict them.
Impact on landlords of the abolition of section 21:
Under the new rules, no-fault evictions will be scrapped.
Instead, landlords must rely on section 8 grounds for eviction and provide clear and expanded possession grounds, like rent arrears or anti-social behaviour, to reclaim properties.
If tenants don’t leave the property after the allotted notice period, depending on the ground provided, landlords must apply to the court for a possession order.
Many fear that the current court system will be unable to handle the increased number of possession claim cases, causing delays and landlords losing rental income.
2. Abolition of assured shorthold tenancies (ASTs).
The Renters’ Rights Bill abolishes fixed-term assured shorthold tenancies (ASTs).
Once the Renters’ Rights Bill becomes law, all tenancies will be periodic, and tenants can stay in their homes until they decide to end a tenancy by giving two months’ notice.
Impact on landlords of the end of assured shorthold tenancies:
Open-ended tenancies mean landlords have less control over tenancy length and will restrict their ability to end tenancies easily.
Landlords will no longer have the security of rental income for a minimum six-month or longer fixed term.
The abolition of ASTs could result in higher tenant turnover.
3. Decent Homes Standard.
New minimum standards will be applied to the sector to ensure properties are safe and secure.
Impact on landlords of the introduction of Decent Homes Standard:
Applying the Decent Homes Standard to the private rental sector means landlords will be legally required to ensure their rental properties meet minimum safety and quality standards in certain areas, such as damp, mould, fire hazards, and heating.
This could lead to higher maintenance costs for landlords. Non-compliance will lead to penalties.
4. Rent.
The Renters’ Rights Bill is set to overhaul rent terms and conditions in various ways, including setting the maximum rent period at one month and proposing an annual rent increase via a section 13 notice.
Impact on landlords of new rent terms under the Renters’ Rights Bill:
Landlords will be unable to ask for more than published asking rents, and limits will be placed on how much rent landlords can ask for in advance.
They can only make rental increases once a year, with any increase aligned to market rates.
5. Discrimination.
It will be illegal for landlords to discriminate against prospective tenants on various grounds, such as having children or receiving benefits.
Impact on landlords of new anti-discrimination measures:
Landlords must consider all applicants equally. Discriminating against certain tenants would lead to legal action and penalties.
What does the Renters’ Rights Bill mean for landlords?
Landlords must ensure they are fully aware of their new responsibilities under the Renters’ Rights Bill.
To prepare effectively to meet enhanced tenant rights and regulatory standards, landlords should:
- Review tenancy agreements.
- Update advertising.
- Revisit rent policies.
- Ensure properties comply with minimum standards.
- Reconsider eviction procedures.
- Adjust property management practices and strategies.
There are concerns that the changes introduced under the Renters’ Rights Bill will cause more landlords to sell their properties and leave the sector.
This could make it more difficult for renters to find properties and cause a ‘black hole’ for those who cannot afford to buy and cannot access social rented housing.
Reduced supply could also result in higher rental prices.
It is also likely that landlords will become more risk averse.
The added complexity involved in the eviction process will make landlords more cautious regarding tenant selection. Landlords will have to carry out more pre-contract research and rely upon guarantors more than they have previously.
Landlord and Tenant Solicitors London
If you are a landlord and need clarification about how the Renters’ Rights Bill is likely to affect you, get in touch with Muscatt Black Graf.
Our experienced Marylebone-based lawyers are specialists in their field and excellent communicators, providing clear and concise advice in plain English and offering pragmatic solutions that fit your commercial interests.
For specialist legal advice on landlord and tenant issues, please contact Muscatt Black Graf’s solicitors by calling 0207 586 1141 or emailing contact@muscattblackgraf.com.
This blog was prepared on 15 April 2025. It is not intended to be advice and should not be relied upon as such.