Renters’ Rights Bill: Significant changes for landlords and tenants

The Renters’ Rights Bill aims to stop perceived ‘bidding wars’ between landlords, end ‘no fault’ evictions, let tenants keep pets, and end fixed-term tenancies. The Bill is expected to receive Royal Assent in April 2025 and would be effective immediately with no transitional period.

The Bill will provide renters with greater protections, making sure the private rental sector abides by a Decent Homes Standard and Awaab’s Law, a result of the tragic death of Awaab Ishak due to a severe respiratory condition. 

Revised grounds for recovering possession of a property will come into place, including a requirement for three months’ rent arrears (currently two months). Courts will also be able to refuse a grant of possession where the landlord has failed to protect the tenant’s deposit.

A fresh ombudsman service for private rented sector landlords will also be created, and crucial information for landlords, tenants and councils will be retained on a digital private rented sector database. Landlords will need to register themselves and their properties on a database for the local authority to track. Penalties for landlords failing to register will be between £7,000 to £40,000.

Further changes include the prohibition of rental bidding, meaning landlords cannot ask for, encourage or accept bids over the advertised price, and it will be illegal for landlords to discriminate against tenants in receipt of benefits or with children when choosing to let their property.  

These changes will require landlords to review existing leases carefully and seek legal advice on terms. All fixed term tenancies will automatically become periodic, with stricter criteria for landlords wishing to terminate. Landlords will need to include costs recovery clauses, for example, requiring tenants to be responsible for damage by a pet and to obtain insurance covering such damage.

Landlords will also need to consider carefully whether a guarantor should be obtained to provide greater security for payment of rent. For some landlords, a consolidation of rental portfolios prior to the Bill coming into force may be appropriate to mitigate against the impact of the changes.

Need help?

As always, you should obtain professional advice before making any decisions.  Please get in touch with us to discuss the potential impact of the changes, on 0330 024 0888 or enquiry@larking-gowen.co.uk. We can advise on the action you might take and put you in touch with property lawyers who can assist.

Becky Ames