Renters' Rights becomes law...but what does it actually mean?

Renters' Rights becomes law...but what does it actually mean?

After 2 ½ years of talking, the Renters’ Rights Bill (previously the Renters’ Reform Bill) finally received Royal Assent this week and is now law.

This legislation will bring the biggest change to the private rented sector for a generation. However, it does not mean that everything has changed overnight. MPs have to decide how the new legislation will be implemented and stakeholders – from landlords, tenants and letting agents, to the courts and third-party providers – will be given a timeframe to prepare before the commencement date. The earliest phase will be introduced from 27 December 2025, but so far this is limited to increasing local housing authority powers. For now, for landlords and tenants, everything will carry on as normal.

But what should you prepare for as we enter a new lettings landscape?

• All tenancies will become periodic.

Even for existing tenancies currently with a fixed term, tenancies will convert to open-ended periodic assured tenancies.

This will give landlords and tenants the chance to end a tenancy when needed. Tenants will have to provide two months’ notice if they wish to move on. 

Meanwhile, landlords will lose the ability to issue a Section 21 no-fault eviction. Instead they will have to use a Section 8 notice, which provides specific grounds for the eviction. These include mandatory grounds including the landlord wanting to move themselves or family into the property (Ground 1), the need to sell (Ground 1A), severe anti-social / criminal behaviour (Ground 7A) no right to rent (Ground 7B) and rent arrears (Ground 8), as well as discretionary grounds should a tenant breach their tenancy.

Landlords will have to offer the security of at least 12 months tenancy before being able to serve notice for their own needs and they will also have to wait 12 months before being able to re-let if the property has been listed for sale.

• There will be greater accountability for landlords

All landlords will have to sign up to a landlord database and tenants will be able to raise a complaint with a dedicated Ombudsman (something they’ve only been able to do so far if letting through a letting agent).

Landlords will need to have comprehensive records relating to their rental properties and tenancy management and will have to prove that they are compliant with all legislation that underpins the private rented sector. Our full management service offers this so you don’t have to worry about staying on top of the admin and communication related to your tenancies.

• The Decent Homes Standard will be extended to the private rented sector

Landlords will also have to prove that their properties are well-maintained and offer safe, healthy homes for the tenants. Awaab’s Law will also be extended from social housing to the private rented sector and will put requirements on landlords to respond to and resolve serious damp and mould issues within a set timeframe. 

Again, our property management services take care of this for you already. We already advise of any work that is needed and, but we expect properties on our books to meet standards needed to be considered a safe and decent home. 

• Renting to be fairer for tenants

With rents at the upper end of affordability and many people unable to access rental homes, the Renters' Rights Act is keen to ensure that renting is not placed outside of people’s reach.

Rental bidding wars will be banned – properties will not be able to be let at a higher price than advertised. Landlords will be able to introduce a rent increase once a year, but tenants will be able to contest this via the First-tier tribunal if they feel the increase is above the market rate for the location and property type / condition. 

We already recommend that landlords take the opportunity to review the rent on a regular basis and can advise on the local market in order to comply with these requirements.

Landlords will also not be able to discriminate either directly or indirectly against tenants on benefit or with children (although tenants will still have to prove that they can afford the rent) and tenants will have the right to request a pet. Landlords will have to provide a valid reason to decline the request, although we have created a comprehensive pet request form in order to establish the suitability of the request so you can make a fully informed decision.

To reassure you, at Brittons Lettings we already hold landlords to account on issues presented in the Act. The challenges will come to landlords who don’t maintain thorough records or let their own bias influence their decisions, landlords who fail to maintain their property and are ignorant of their responsibilities. These are not our landlords.

The benefits to both landlords and tenants in having decent properties let long-term in exchange for a fair rent won’t change. But staying on top of the requirements to prove this will be important. 

At Brittons Lettings we’re here to help guide you through the changing landscape. Call us on 01553 692828 to discuss how we can help you.