The Renters’ Rights Bill, formerly known as the Renters (Reform) Bill, proposes sweeping changes to the private rental sector in the UK, affecting both landlords and tenants. As of October 2024, the bill is still making its way through Parliament but is expected to pass by summer 2025. The bill seeks to create a fairer balance between landlords and tenants, aiming to increase tenant security while providing landlords with specific safeguards.
Impact on Tenants
The bill brings significant protections to tenants. One of the most notable reforms is the abolition of Section 21 “no-fault” evictions, which currently allow landlords to remove tenants without providing a reason. Under the new law, landlords will need valid, evidenced reasons—such as property sales or personal/family use—to repossess a property, and tenants will have stronger rights to challenge these claims in court.
Another crucial aspect is that tenancies will transition to rolling periodic contracts, meaning tenants are not bound by fixed-term leases but can stay indefinitely unless valid notice is served. Tenants will have at least 12 months of protection from eviction at the start of their tenancy, offering greater long-term security.
Impact on Landlords
Landlords, on the other hand, will still be able to recover their property, but with extended notice periods and the need to provide evidence of their intent to either sell the property or move in themselves. A four-month notice will be required and landlords will be restricted from re-letting the property for 12 months after regaining possession, aiming to prevent misuse of the new regulations.
While rent control mechanisms are not included in the bill, rent increases will be limited to once a year and tenants will have the right to challenge any hikes they believe are above market rates through the First-Tier Tribunal. Additionally, landlords can no longer accept bids above the advertised rent, ending “bidding wars.”
Other landlord obligations include adhering to Awaab’s Law, which mandates quicker responses to issues like mould and damp as well as compliance with the Decent Homes Standard—a move that will likely raise costs for property upkeep but aims to improve living conditions.
Ongoing Journey
The bill is still under parliamentary review and while it is expected to pass in 2025, there could be amendments. The timeline for its full implementation is not entirely clear and further revisions may come during its legislative journey. Key updates are anticipated as the bill moves closer to becoming law.
Both landlords and tenants should prepare for these changes, particularly with regard to how they manage rent increases, possession claims and property standards. Landlords may also want to familiarise themselves with new obligations like registering with a Private Rented Sector Database and joining an Ombudsman scheme, both of which aim to enhance transparency and accountability in the rental market.
By next summer, these reforms could significantly reshape the rental landscape in the UK, creating a more structured and regulated environment for both parties.