How the Renters Rights Bill will affect tenants and landlords

The Renters Rights Bill is set to become law in Spring 2025. The legislation aims to transform the rights of tenants across England, with some elements also covering Wales.

The bill evolved from the Renters Reform Bill, which was proposed by the previous government. It sets out to give tenants greater protection, including the evolving ‘Decent Homes Standard’. The new standard will now apply to both the public and private rental sectors. This standard aims to ensure all rented homes are safe, secure and hazard-free. It also seeks to provide a minimum standard of living conditions, to bring us in line with our European counterparts.

Background

The Renters Reform Bill was proposed by the previous government, and committed to “bring in a better deal for renters”. This includes creating greater balance and fairness between tenants and landlords. The new government have taken the meat and potatoes from bill, which did not make it through Parliament last year due to the snap election. It now has some additions, which were introduced in the King’s Speech in July 2024. The updated legislation will “give greater rights and protections to people renting their homes, including ending no-fault evictions and reforming grounds for possession.”

Below we take a look at some of the key highlights from the new bill.

No fault evictions and unscrupulous practice

The bill will put an end to Section 21 no-fault evictions for new and existing tenancies. These evictions have contributed to a surge in homelessness figures across the country. The measures are designed to give tenants greater powers to challenge bad practice without the fear of eviction. The onus will now be on landlords to provide a valid reason to end a tenancy early.

Last year alone, nearly 26,000 households faced homelessness as a result of a Section 21 eviction. This led to a higher need for support from their local council. Greater security should give renters peace of mind, so they can live peacefully without the fear of unfair eviction.

The practice of prospective tenants outbidding each other on rental properties will also be outlawed. This is a common tactic used across the private sector to secure higher rent than their asking price. Under the new bill, landlords and letting agents will be legally required to publish static rental prices for their property. There will also be a ban on in-tenancy rent increases written into contracts. These measure means that landlords will only be able to raise the rent once per year, at market rate.

A new Private sector (PSR) database will also come into effect. This will clearly outline landlords obligations for compliance. It will also provide information for tenants so they can make informed choices about new tenancies.

Awaab’s Law update

Awaab’s Law, introduced in July 2023 as part of the Social Housing (Regulation) Act 2023, will now extend to the private sector. In 2020, two year old Awaab Ishak tragically died after prolonged exposure to mould. He was living with his family in his council home in Rochdale, Greater Manchester, and highlighted a widespread issue.

The new law states that hazards must now be investigated within 14 days, and gives clear legal timeframes for landlords to deal with serious hazards. The law will also require that landlords provide a written report, and an offer of alternative accommodation if emergency hazards cannot be dealt with within 24 hours.

Discrimination

Under the new bill it will be illegal for landlords to discriminate against tenants who are on benefits, or who have children or pets.

The new bill aims to outlaw income discrimination in housing by making it illegal for landlords and letting agents to refuse tenants on the basis that they receive benefits or have children. The bill seeks to remove barriers that may prevent marginalised groups from renting affordable homes.

It will also give tenants the right to request to keep a pet, which landlords cannot unreasonably refuse. Landlords will, however, be able to request insurance to cover potential damage from pets if needed.

Implications

The reforms have broadly been welcomed by tenants and landlords across the public sector. There has been initial trepidation from some landlords across the private sector, who have stated they may need to increase rents to cover their options.

With an ambitious plan already outlined by the new administration to transform the UK housing sector, there will be pressure to increase the availability of social homes. This is to counteract rising private rent levels, and to mitigate against uneven market conditions.

With many across the country now unable to get onto the housing property ladder, the need for rental reforms has been talked about for a long time. Although there will likely be challenges, it is expected that the new bill will present a new set of powers for tenants going forward. It is expected to redress many of the current imbalances, whilst also providing a clearer, more solid and integrated housing standard for all landlords.