Understanding the Renters' Rights Bill
WEBBERS CENTENARY YEAR ESTABLISHED 1924
Dear Landlords
The recently introduced Renters' Rights Bill which is currently before Parliament is set to make major changes to the private rental sector. It aim is to create more security for tenants while establishing clear legal frameworks for landlords
Here is a brief summery breakdown of the key components of this legislation although some of the detail may change before it becomes Law – no clear date has been given but it is expected late Spring/early Summer 2025 There is not expected to be a transitional period but what industry commentators and experts are clear on is that the impact of the Bill will cause rents to rise. Some detail may change, and the months ahead will allow us time to full understand and digest the full implications of the Bill and assess how we integrate it within our business process You may also wish to take formal legal advice on any matters but information can be found here: Guide to the Renters’ Rights Bill - GOV.UK or search “Renters Rights bill guidance” online
Kind regards
Lawrence Williams
Head Of Lettings
A century of caring for your happiness and your home
Abolition of Section 21 ‘NoFault’ Evictions 1.
Perhaps the most widely publicised change in the Renters' Rights Bill is the abolition of Section 21, which previously allowed landlords to evict tenants without providing a reason (a “ground”) at the end of a fixed-term tenancy However, under the new legislation, landlords will now need to rely on defined legal grounds to end a tenancy
What This Means for Landlords: Any future eviction is via a Section 8 notice, and must be based on meeting a specific defined grounds.
2. Section 8 notices – increased Grounds for Possession
Although Section 21 is being removed, the bill provides landlords with enhanced grounds for possession under the Section 8 route These include:
Selling the property: If you wish to sell the property, you can use this as a reason for eviction
Moving in: Landlords can evict tenants if they or a close family member plan to move into the property.
Tenant fault: Stronger provisions for dealing with tenants who break the terms of their lease (e.g., rental arrears, damage to the property)
Means for Landlords: Landlords will still l grounds to reclaim their property The ices have changed and notice may not served within certain timeframes There penalties for landlords who rely on a y ” . We recommend landlords familiarise th these updated criteria, as the process lear evidence. It is generally expected some ” tenants will be served notice tion 21 process before the changes are ou can view the proposed Grounds for he above link
We attach a Do Not Disturb label to your property until you are ready for viewings
3. New default Assured Periodic (monthly) Tenancies
Any existing fixed-term tenancies will automatically be replaced and become rolling periodic tenancies, with no set end date Tenants will be required to give 2 months notice (an increase on the current 1 month period) and this must coincide with a rent due period
What This Means for Landlords: The abolition of a fix term tenancy in theory will allow a tenant to give 2 months notice on the day they move in, however the reality is that the demand for long term rental homes remains exceptionally high It will no longer be possible to accept 6 months rent in advance for applicants who offer to do so, or have a “risk” associated with them, as the rolling contract will only be for a month at a time Likewise, as Guarantors can provide “reasonable notice” the effectiveness of their security is diminished. This will mean more focus on securing applicants who are able to meet their obligations.
4. Rent Increases: Timeframe & processes
Rent increases will still be limited to once per year, with 2 months notice of any planned increase (increasing from 1 month), and can only be issued via Section 13 notice. Tenants will still have the right to appeal any increase to the First Tier Tribunal (FTT) to review if they feel an increase is unfair, although currently this practice is extremely rare. The Bill does change the FTT process in that any increase will take affect after a review, which may take some months and the abolition of Section 21 may encourage some tenants to raise an appeal. The decision of the FTT is binding.
What This Means for Landlords: Once the Bill becomes Law any rent increases need to be fair and with supporting evidence to justify the proposal Landlords, especially those with property values that are undervalued, are now reviewing rent levels
5.
New
Minimum Housing Standards
& “Awabbs Law”
The bill places greater emphasis on ensuring properties meet certain safety and quality standards This includes new protections against damp, mould, and poor living conditions All rental properties must meet these updated criteria, and local authorities will have enhanced powers to enforce these standards or tenants can seek compensation
What This Means for Landlords: You should ensure that your rental properties comply with the new safety standards. Prompt action on maintenance issues will be essential to avoid penalties
6. Mandatory Ombudsman Scheme
All landlords will be required to join a mandatory ombudsman scheme, which will provide tenants with a way to resolve disputes without going to court This scheme will offer tenants a simple, low-cost way to escalate issues if they believe their rights have been violated
What This Means for Landlords: Landlords will need to register with the ombudsman scheme to ensure you are compliant with the law, although we await further details
7. Request for a pet
The legislation will imply that a tenant can have a pet but a tenant will need to ask for permission, which “cannot be unreasonably withheld”.
What this means for landlords: There will be an amendment to the Tenant Fees Act which will allow a tenant to pay for pet insurance should permission be granted
8. Landlord Property Database
This will be an online database to provide information to landlords on legal compliance and allow tenants to check that that legal requirements have been complied with. We expect tenants to be able to download for example copies of electrical reports or the property EPC.
We attach a Do Not Disturb label to your property until you are ready for viewings
What this means for landlords: The database is not expected to share any personal information such as phone numbers or email addresses
9. Preventing Rental discrimination
It will be an offence to discriminate against a tenant if they are receiving benefits or have children
What this means for landlords: We don’t consider this a concern and our marketing will always comply with legal requirements.
We attach a Do Not Disturb label to your property until you are ready for viewings
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*The guidance in this booklet should not be relied upon, and is subject to change. We recommend that you speak to your solicitor for formal legal advice.