Renters' Rights Bill

The Government has recently published its first draft of the Renters' Rights Bill, which is due to introduce new tenant protections and significant changes to rental legislation next year.

It is important to note this only affects Housing Act tenancies which are tenancies which rent for less than £100,000 p/year (£1,923 p/week) and are in personal tenant names, rather than companies.

We have outlined the proposals as they currently stand below but there may be further amendments to the draft bill over the coming months.

Removing Section 21 notices:

Currently landlords can serve a Section 21 notice which enables them to repossess their property from tenants without specifying a reason for possession.

Under the new proposals, landlords will be able to regain possession after a minimum 12 month period should they wish to sell or move back into the property. In this situation, they will be required to give four months' notice. Landlords will also be able to regain possession where there are serious rent arrears or anti-social behaviour.

Introduction of periodic tenancies instead of fixed terms:

Tenancies will be changed to a simpler structure known as Assured Tenancies, where they will run on a ‘rolling’ basis until notice is served. Fixed-term tenancies and renewals will be replaced by month-to-month leases. Landlords will be able to increase rents, in line with the market price, on an annual basis by serving a Section 13 notice.

Ban on rental bidding wars:

Rental bidding wars, or ‘best and final’ offers will no longer be permitted. Landlords or letting agents must specify an asking price and will not be able to encourage or accept higher offers than the advertised price.

Allow tenants to request a pet:

Landlords will be required to consider requests for pets and permit them, unless there is justification to decline. However, landlords can require that tenants take out pet insurance to protect the property against damage.

Introduction of a new Landlord Ombudsman and a Private Rented Sector Database:

Landlords will be required to join an impartial redress system, for situations where tenant complaints cannot be resolved directly. A mandatory Private Rented Sector Database is also being proposed to aid landlords in demonstrating compliance with property safety standards.

Expected Timescales:

Implementation will follow Royal Assent which is anticipated to happen in March - June 2025.

How it will work:

The changes will be introduced to the private rental sector in one go. An implementation date will be determined, and on that date, the new tenancy system will apply to all private tenancies. Existing tenancies will convert to the new system, and any new tenancies signed on or after this date will also be governed by the new rules. The single date will prevent a confusing 2-tier system and it means that existing fixed terms will be converted to periodic tenancies immediately.

Read more:

To see the detailed official Government guide to the Renters' Rights Bill, click here.

Contact us:

Please contact us if you have any questions or would like to discuss this further:

Catriona Mackay, Senior Rental Specialist
catriona.mackay@eccord.com
+44 (0)7464 197 983
+44 (0)20 7244 4488