The Renters’ Rights Bill, which was recently introduced in the House of Commons, has moved forward with its second reading, marking a significant moment in rental reforms. This new legislation, set to change the landscape of the private rental market, is designed to provide better protections for tenants while addressing longstanding issues within the sector.
New tenancy rules and abolition of Section 21
At the heart of the Renters’ Rights Bill is the abolition of Section 21 ‘no-fault’ evictions, which have long been a source of controversy. If passed, all private rented sector tenancies would become periodic assured tenancies, meaning tenants would no longer face fixed-term contracts with arbitrary end dates. Instead, tenants would need to provide two months’ notice to end their tenancy.
The Bill also seeks to reform and expand grounds for possession, ensuring that landlords have sufficient legal routes to reclaim their properties while safeguarding tenants’ rights. Polly Neate, CEO of Shelter, described the bill as “a watershed moment” for renters, while Matt Downie, CEO of Crisis, said it would provide tenants with “long-overdue security and protection against homelessness.”
Tighter regulations on rent increases and landlord obligations
One of the bill’s key features is its approach to rent increases. Under the new rules, landlords will only be able to raise rent once per year, and they must give at least two months’ notice of any increase. Tenants will also have the right to challenge any rent hikes that exceed market rates through the First-tier Tribunal (Property Chamber). The practice of rental bidding—where tenants are encouraged to offer higher rent than advertised—will also be banned.
The proposed legislation aims to improve the standard of rented homes through the introduction of a “decent homes standard” and will give tenants the right to request pets, with landlords prohibited from unreasonably refusing such requests. However, landlords can still require insurance to cover potential damage from pets.
Sam Reynolds, CEO of Zero Deposit, voiced concerns over the potential unintended consequences for landlords. He argued, “Whilst improvements to tenant welfare are positive in theory, it’s clear that the Government has so far taken a head-in-the-sand approach to the bigger picture, with little consideration afforded to the nation’s landlords.”
Landlord redress scheme and database proposed
A significant addition to the bill is the introduction of a new landlord redress scheme, making it mandatory for all private landlords to join an ombudsman service. This service would handle tenant complaints and have the authority to enforce compensation or remedial actions.
Additionally, the creation of a private rented sector database is proposed to provide transparency and accountability for both landlords and tenants. This would include essential information to help tenants make informed decisions and allow landlords to better understand and demonstrate compliance with their legal obligations.
Daryl Norkett, Director of Real Estate Proposition at Shawbrook, highlighted the importance of balance within the reforms: “The Renters Reform Bill is comprehensive and addresses a wide range of issues that impact renters and landlords. It’s crucial that any new legislation provides clear, workable alternatives to address issues such as anti-social behaviour, rent arrears, and the sale of properties.”
Reactions and concerns from the sector
Reactions to the bill have been mixed. While tenant advocacy groups such as Generation Rent have celebrated the reforms as a major step forward, landlord organisations have expressed concerns. The National Residential Landlords Association (NRLA) warned that this legislation represents “the biggest change to the sector for over 30 years” and called for more time to prepare for its implementation.
Marc von Grundherr, Director of Benham and Reeves, issued a stark warning about the potential impact: “Should the Government persist with yet another ill-devised legislative overhaul, the result will be fewer landlords, less homes for renters, higher rents, and an even tougher time for tenants.”
The bill is seen by many as a necessary shift to protect vulnerable tenants, but others fear it could destabilise the rental market. With the government aiming for the new system to be in place by summer 2025, the debate surrounding the Renters’ Rights Bill will continue as landlords and tenants alike prepare for potentially transformative changes.
