The Renters’ Rights Bill: What Landlords and Tenants Need to Know
The Renters’ Rights Bill, currently making its way through Parliament, is set to bring significant changes to the rental market.
These reforms will affect tenants and landlords, which aim to create a fairer, safer, and more transparent rental system.
Our general manager, Mark, has summarised the key changes for landlords and tenants and how they could impact you. Scroll down to see the main adaptations now.
What is the Renters’ Rights Bill?
The Renters’ Rights Bill is a new piece of legislation proposed by the government to change the rules around renting homes.
It was first introduced to Parliament on September 11, 2024. At this stage, the bill is formally presented without any debate.
The bill aims to make several key changes to rental laws, such as getting rid of fixed-term rental contracts and setting new requirements for landlords regarding rental homes, temporary housing, and supported accommodation.
These changes are designed to offer more protection and clarity for both tenants and landlords.
The Main Changes Landlords & Tenants Should Know
Awaab’s Law: Tackling Damp and Mould
Awaab’s Law is a new rule aimed to make homes healthier by tackling issues like damp and mould.
Landlords will be required to investigate the causes of damp and mould within 14 days after a tenant raises a concern. This law protects tenants from unsafe living conditions and holds landlords accountable for quickly fixing problems.
No More Bidding Wars
Under the new law, landlords and letting agents must list a set price for rental properties. They won’t be allowed to encourage or accept offers higher than the asking rent.
This will help avoid the stress and unfairness of bidding wars, giving everyone a fair shot at finding a home within their budget.
Rent Increases – Once a Year, Max
Landlords will only be able to raise the rent once a year, and it must reflect the current market rate (the price for similar properties in the area).
If they want to increase the rent, they must give tenants at least two months’ notice. This gives tenants more stability and time to plan for any changes.
Challenging Unfair Rent Hikes
If a tenant feels that a rent increase is unreasonable, they’ll have the right to challenge it.
This ensures that landlords can’t use rent increases to push tenants out unfairly while still allowing rents to rise in line with the market.
Pets in Rental Homes
Under the new Bill, tenants can ask their landlord if they can keep a pet.
Landlords can’t unreasonably refuse this request but can ask for pet insurance to cover any potential damage.
This gives pet owners more opportunities to find homes while protecting landlords’ properties.
Better Standards for Rental Homes
The Bill introduces a new “Decent Homes Standard,” ensuring all rental properties are safe and free from hazards.
Landlords who don’t meet these standards could face fines of up to £7,000. This is a big win for tenants, as it will help reduce the number of poorly maintained properties on the market.
End of Section 21 Evictions (“No Fault Evictions”)
The Bill will end Section 21 notices, also known as “no-fault” evictions, where landlords could ask tenants to leave without a reason.
Now, tenants can only be asked to move out for legitimate reasons, making renting more secure.
The abolition will apply to new and existing tenancies.
Rolling (Periodic) Tenancies
Fixed-term leases will be replaced with rolling tenancies, which will renew monthly. Tenants can give two months’ notice to end the tenancy at any time, giving them more flexibility.
New Digital Database for Rentals
A new digital database will be created to help landlords manage their responsibilities and provide tenants with key information about rental properties. This will also assist local councils in targeting landlords who do not follow the rules.
No Discrimination Against Families or People on Benefits
The Bill will make it illegal for landlords or letting agents to refuse tenants just because they have children or are receiving benefits.
“No DSS” or “No benefits” policies have been ruled as unlawful discrimination, ensuring everyone has a fair chance at finding a home.
Simplified Tenancy System
All short-term tenancies (like six-month or year-long leases) will be replaced with one simplified system of rolling monthly tenancies. This will streamline the rental process and help tenants and landlords understand their rights.
A New Landlord Ombudsman
The Bill will introduce a new Private Renters’ Ombudsman, providing a fair and impartial way to resolve disputes between landlords and tenants.
All landlords will be required to join, ensuring that tenants have access to help, whether or not their landlord uses a letting agent.
Changes for Student Rentals
For landlords renting to students, the Bill will allow them to take back possession of the property before each academic year starts (June to September), as long as they provide proper notice ahead of time. This will help streamline the process for student housing.
Rent Repayment Orders
If landlords break the rules, tenants can take action to claim back up to two years’ worth of rent through Rent Repayment Orders.
This will apply to landlords at all levels, including company directors, and is designed to punish repeat offenders more harshly.
Looking to The Future & A Note From General Manager Mark
The Renters’ Rights Bill has the potential to reshape the rental market, so understanding the potential changes before they’re implemented is vital.
With this blog, I wanted to take a moment to highlight some of the most critical aspects of this Bill and what it means for both landlords and tenants.
More changes are coming soon. One big update is that landlords won’t be allowed to refuse tenants just because they receive benefits (often called “no DSS” policies).
Another change is that landlords renting to students will be able to take back their properties before the new school year starts. Both landlords and tenants should be ready for these updates.
At Allen Goldstein, we’re here to help you understand these new rules. If you have any questions, feel free to reach out to us anytime.
Mark Winship,
General Manager, Allen Goldstein.
Get in touch with the team today.
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