The Government’s Renters’ Rights Bill (a revamp of the previous Conservative government’s Renters Reform Bill) successfully passed its 3rd and final reading in the House of Commons on 14th January 2025. The final draft of the bill was sent to the House of Lords where it was read on Tuesday 4th February 2025.
The Lords highlighted concerns about a few important areas, such as the impact on student tenancies, the supply of rental properties and the impact on small-scale landlords (who, according to the English Private Landlord Survey, supply approximately 83% of privately rented accommodation in the UK). The proposal to allow tenants to be able to request pets was also discussed, particularly with regard to how, without clear guidelines, it will impact landlords. The importance of effective legal enforcement was stressed, especially concerning fair dispute resolution and upholding the rights of both landlords and tenants.
Some peers expressed concern regarding the government’s assertions that in enhancing tenant security, landlords could feel overburdened, which in turn could reduce the housing supply therefore increasing costs for tenants.
The Bill will be reviewed once again by the House of Lords later in February 2025, with the potential for additional amendments, before it continues on its way towards becoming law in the Spring of 2025.
Aims of the Renters’ Rights Bill
The Government’s main aim for the Bill is to redress the balance between landlords and their tenants by offering renters greater security of tenure whilst ensuring their landlords meet higher standards of responsibility.
For tenants this means
Increased security of tenure: The Bill will remove the threat of sudden eviction by abolishing Section 21 notices, thus giving tenants greater peace of mind.
Enhanced affordability: Landlords will not be allowed to accept offers above the advertised asking price and rent increases will only be allowed once per year, capped at market levels.
Introduce a new Decent Homes Standard: This will be applied to the Private Rented Sector (PRS) for the first time.
Removing discriminatory practices: The Bill will outlaw blanket bans such as “No benefits” or “No children”.
Greater transparency in the system: A Landlord Ombudsman will be introduced to deal with tenant complaints and offer binding resolutions. Also, a digital property portal will be introduced to help local councils to enforce landlords’ legal obligations.
For Landlords the Bill will
Abolish Section 21 notices and so called ‘No fault evictions’: As a result, landlords will have to have a reason (called a ‘Ground’) to evict tenants under Section 8 notices. Grounds will include rent arrears, landlords’ selling the property or moving into it.
End fixed-term tenancies: All tenancies will be periodic from the outset – which means that they will be open-ended. Tenants will be able to serve two months’ notice at any time to end their tenancy.
Restrictions on rent increases: Landlords will only be able to increase rents once per year, capped at market levels. Tenants will be able to challenge any increase they believe to be unfair.
Bidding wars will be outlawed: Landlords will not be allowed to accept offers from tenants that are higher than the advertised asking price.
Property portal: It will be mandatory for all landlords to register on a new digital property portal.
Pets in properties: Tenants will have the right to request permission to keep pets in rental properties. Landlords will be unable to have a blanket ban on pets unless there is a head lease (in leasehold properties) which prevents them. However, landlords will be able to protect themselves by making tenants take out insurance for damage caused by pets.
What steps should landlords take now to prepare for the Renters’ Rights Bill?
The Bill is likely to come into force as soon as Spring 2025. Therefore, it would be prudent for landlords to take the following steps:
Consider a Rent Protection product: There’s only one thing that is worse for a landlord than having an empty property and no rent coming in – that’s having a full property with no rent coming in! Whilst it is already a risk, the new laws mean that it is highly likely that notice periods will be increased. In addition, courts are going to be significantly busier than they have previously been, therefore it is likely to take longer to gain possession if your tenant stops paying their rent. Rent Protection products will ease the burden on your finances if the worst happens. Please contact us to find out more.
Be selective with your tenants: Most landlords agree that having good tenants is imperative. Take time to select the best tenant for your property and use an experienced agency like Jacksons to help sort the wheat from the chaff.
Present your property in its best light: Properties in the best condition will not only achieve the best rents but will also attract the best tenants. Ensure your property is in good decorative order and nicely presented for potential tenants. If your property is suffering from mould and/or damp, the best time to address it is whilst the property is empty – and before the Decent Homes Standard is imposed on the Private Rented Sector.
Jacksons has landlords covered
Jacksons will offer landlords a range of services and products to ensure that they are fully protected and prepared for the Renters’ Rights Bill:
1. Rent reviews: Our team will provide justification and comparable evidence for our landlords’ rent increases and will serve the appropriate Section 13 notices to tenants.
2. Rent & legal protection: We offer all landlords comprehensive and competitively priced Rent & Legal Protection cover.
3. Accurate valuations: Our local experts have in-depth knowledge of the local rental market, allowing them to give accurate rental valuations to ensure that landlords achieve the best rental income.
4. Tenant referencing: We use a specialist referencing company, making sure we recommend only the best tenants to our landlords.
5. Decent homes requirements: Our experienced team will keep all landlords aware of any new requirements under the Decent Homes Standard.
6. Landlord compliance: The team will also ensure that our landlords are provided with detailed guidance on how to register on the landlord portal when it becomes available.
7. Pet tenancies: Jacksons is already experienced in managing tenancies involving pets and will be able to offer comprehensive Pet Damage Cover insurance.
8. Guarantor service: We can offer a Guarantor Service to tenants that don’t have a rental history and require support with securing their first tenancy.
If you wish to discuss how the Renters’ Rights Bill might affect you and how you can prepare for it, please do not hesitate to contact lettings@jacksonsproperty.co.uk
