Renters' Rights: What Landlords Need to Know

Renters' Rights: What Landlords Need to Know

As the Renters Rights Bill makes its way through Parliament towards Royal Assent later this year, it will represent the biggest shift in lettings legislation for a generation. So, what does it mean for landlords? What will stay the same? And what should landlords be doing now to prepare for the changes? 

What is the Renters’ Rights Bill?

As Labour came into power last year, one of their priorities was to bring a fairer balance to the private rented sector as they felt too many tenants were subject to poor quality housing and a sense of insecurity. The Conservatives had taken a similar stance with the Renters’ Reform Bill, but this had failed to make legislative reform before the election, so Labour largely picked up where the Conservatives had left off. 

With a determination to abolish Section 21 “no fault” evictions, the Bill will transform the processes that underpin the private rented sector. Tenancies will no longer have a fixed period, but will run on a “periodic basis” until either the tenant or landlord gives notice. This is to give tenants greater flexibility as and when they need it, whilst also giving them greater security as landlords will have to give a reason for an eviction if they want repossession via a series of Section 8 notice options. This will also affect a landlord’s ability to collect rent in advance.

So, what’s changing?

From the implementation date (which is still to be determined) all Assured Shorthold Tenancies (ASTs) will become Assured Tenancies. This means that they will run on a month-by-month basis, rather than for a fixed term. Tenants will be able to give 2 months’ notice at any point, although landlords will be obliged to allow tenants the right to rent from them for at least 12 months, unless they break the terms of their tenancy, e.g. by not paying the rent, damaging the property or acting illegally. Notice periods for landlords will increase to four months’ if they want to sell the property rather than re-letting.

Other key points in the Bill are:

Fair Pricing

No tenant will be able to offer a higher rent than the one advertised in order to a secure a property. 

Rent increases will be limited to once every 12 months. Tenants will be able to apply to the Housing Tribunal if they believe an increase is unfair. The Tribunal may uphold the increase, but they are also able to set a lower rent determined by the market 

The Decent Homes Standard & Awaab’s Law to be applied to the private rented sector

This will enable tenants to hold landlords to account where there are serious issues with a property’s standards, including damp and mould.

Landlord Register

All landlords renting property within the private rented sector will have to register for a national database. This aims to hold all landlords to account as well as increasing landlords’ awareness of their obligations. 

Private Rented Sector Ombudsman

This will give an impartial route to disputes between landlords and tenants

Anti-Discrimination and Pet Ownership

Landlords will not be able to discriminate against potential tenants based and tenants will have the right to request a pet at the property. Landlords will need to accept the request if the pet is suitable for the property.

What will stay the same?

Although new standards will be applied and new processes put in place, there may be little in the Bill to concern landlords who are already offering homes of a decent standard within the sector. The intention is that rogue landlords and those who do not understand their responsibilities will be held to account. Ultimately, however, the majority of landlords, especially those managed by a reputable agent, are already meeting these requirements. 

Landlords generally want long-term tenants in exchange for a fair rent and only request a tenant to leave if the tenant’s behaviour warrants it or if their own circumstances change. Landlords will still have a route to repossession to cover their options. It’s worth bearing in mind that most tenancies are ended by tenants. However, tenants also want to feel secure and stable in their homes and will stay for as long as it suits their circumstances. The average length of a tenancy in England is currently 4.4 years, so although tenants will have an option to give notice at any time, it doesn’t mean that they will.

How soon will this happen?

Having progressed through the House of Commons, the Bill has now also been discussed in the House of Lords. A number of amendments will now be proposed to the House of Commons before the Bill reaches Royal Assent. It’s believed that this will happen in the autumn at which point an implantation date will be set. This will probably be early in 2026, although nothing so far has been confirmed.

What should landlords do now to prepare?

The Bill puts an onus on landlords to know their responsibilities and to act compliantly. 
 

This might seem like a lot, but for responsible landlords little will change other than the processes involved. 
 

The best way to do this is to use the management services of a certified and accredited lettings agent. At Brittons, we take pride in being qualified in lettings practice and members of Propertymark, the leading industry body for the property sector. This ensures that the team are aware of the twists and turns of the Bill and can offer informed, reliable advice now, giving peace of mind to landlords in the new legislative landscape as the Bill becomes law. 

How to stay ahead of the Renters’ Rights Bill? Let Brittons let for you.