Andrew Fairman
Partner at MSB Solicitors
Andrew Fairman, partner at MSB Solicitors, sets out the key elements of the Renters Rights Bill and urges lawyers to be ready for its swift implementation following Royal Assent later this year
The introduction of the Renters’ Rights Bill brings with it the most sweeping reform of housing law in decades. Originally proposed as the Renters (Reform) Bill under the previous government, the current Bill was resurrected by the current government in a slightly different guise but with similar aims.
The bill is expected to achieve Royal Assent later in 2025, although an exact date remains unclear.
The Bill introduces significant changes to the statutory position managing residential tenancies, and will have wide-ranging implications for landlords, managing agents and social housing providers alike.
The key changes it will introduce are:
1. Abolition of assured shorthold tenancies and Section 21 evictions
The removal of Section 21 evictions, or so-called “no-fault” evictions, is seen as the government’s landmark priority. Rather than outright removal of Section 21, the reality is that the abolition of assured shorthold tenancies would then be followed by the redundancy and removal of the Section 21 process.
As such, from a date to be specified, all new and existing tenancies will convert to assured tenancy types, regardless of the previous position.
The intention here is to increase tenants’ security of tenure. However, it will amend how landlords can recover possession of properties and also affect the social housing sector, whereby “starter tenancies”, currently used for first 12 months as an assured shorthold tenancy before converting, will no longer be viable.
2. Amendments to the grounds for possession
The Bill makes amendments to existing statutory grounds for possession under Section 8 and Schedule 2 of the Housing Act 1988. Key developments include:
- Mandatory Grounds: New limitations on the use of Grounds 1 and 1A (landlord occupation and intention to sell) restrict their use within the first 12 months of a tenancy, with a new four-month notice period.
- Rent Arrears: The threshold for mandatory possession under Ground 8 is raised to three months’ arrears, and the notice period is doubled to four weeks.
- Anti-Social Behaviour: Powers to seek immediate possession have been retained and strengthened where tenants have engaged in serious misconduct.
3. A ban on discriminatory letting practices and bidding wars
In a further attempt to provide greater security, the Bill introduces statutory prohibitions on discrimination against tenants with children, tenants in receipt of benefits, and tenants wishing to keep pets, subject to limited exceptions. It also statutorily removes any rental bidding practices by requiring landlords to specify a maximum rental amount in any advertisement and preventing acceptance of higher offers.
4. Regulation of rent increases and rent in advance
Section 13 of the Housing Act 1988 will be amended to prevent contractual rent review mechanisms. Future increases must follow the statutory route as set out in this legislation. Significantly, rent cannot be demanded more than one month in advance.
5. Greater compliance obligations
The Bill imposes a duty on landlords to provide a written statement of key tenancy details before commencement. Non-compliance may result in a financial penalty of up to £7,000 and restrict access to certain grounds for possession.
It also criminalises any misleading practices in purporting to end tenancies improperly, creating offences that may attract fines of up to £40,000.
6. Decent homes standard and Awaab’s Law for the private sector
For the first time, private landlords will be required to comply with a version of the Decent Homes Standard, including prompt remediation of health hazards under “Awaab’s Law”. This currently affects the more regulated social housing sector.
7. Creation of a National Landlord Database and redress scheme
The Bill looks to create a centralised database of landlords and properties within the private rented sector, with regulatory enforcement actions established alongside mandatory registration requirements.
A landlord redress scheme will also be introduced to handle tenant complaints, with remedies including damages and compulsory apologies. These developments align with current practices in social housing.
8. Energy efficiency targets and future requirements
The government has confirmed that by April 2030, all tenanted properties must achieve a minimum EPC rating of C. For new tenancies, this requirement will take effect from April 2028. The cost cap for compliance will increase to £15,000, subject to ongoing consultation.
Take steps now
The Renters’ Rights Bill represents a landmark attempt to address the balance of power between landlord and tenants through new, specific and targeted changes in law. It increases tenant security of tenure, creates new regulatory burdens on private landlords and requires careful management of possession proceedings and tenancy structuring.
Law firms acting for landlords and housing associations must now take steps to reflect on the incoming changes, as the current proposal is for the new law to be implemented as soon as possible after Royal Assent is achieved.
This will not provide any grace period such as those seen following the introduction of previous compliance-based legislation, so an early review of property portfolios to fit in with the new framework is recommended. Preparation will no doubt be key to understanding where landlords stand and avoiding falling foul of incoming compliance requirements.
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