The Renters’ Rights Bill: A Complete Guide for Letting Agents
Updated: 20/03/2025
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Overview of Bill Measures
Abolish section 21 evictions: Section 21 evictions will be abolished, transitioning all assured tenancies to periodic agreements. This change provides tenants with greater security and the ability to challenge rent increases or poor practices without fear of eviction. Landlords may face challenges in regaining possession of their properties under this new system, which will be implemented in one stage.
Ensure possession grounds are fair to both parties: New safeguards aim to balance tenant security with landlords’ ability to recover their property for legitimate reasons, such as selling or moving in. However, landlords may face stricter requirements and longer timelines for evictions, as well as limits on grounds that could be perceived as unfair.
Provide stronger protections against backdoor eviction: Landlords will still be able to set rents at market rates, but tenants can appeal excessive rent increases designed to force them out. An independent tribunal will oversee disputes, which may add complexity and delays for landlords attempting to adjust rents.
Introduce a new Private Rented Sector Landlord Ombudsman: A mandatory ombudsman will resolve tenant complaints quickly and impartially. While this aims to improve dispute resolution, landlords may face additional scrutiny and binding decisions that could impact their operations.
Create a Private Rented Sector Database: Landlords will need to register on a new database to demonstrate compliance with legal obligations and access certain possession grounds. This may increase administrative burdens and expose landlords to greater enforcement activity by local councils.
Give tenants strengthened rights to request a pet in the property: Landlords must consider tenant requests for pets and cannot unreasonably refuse them. While pet insurance can be required to cover damages, landlords may have less control over property usage and potential risks associated with pets.
Apply the Decent Homes Standard to the private rented sector: The introduction of this standard aims to improve housing quality but could require landlords to invest significantly in upgrading properties to meet stricter criteria, potentially increasing costs.
Apply ‘Awaab’s Law’ to the sector: Landlords will face legal deadlines for addressing serious hazards in their properties. Non-compliance could result in penalties, adding pressure for timely maintenance and repairs.
Make it illegal for landlords and agents to discriminate against prospective tenants in receipt of benefits or with children: This measure ensures fairness but limits landlords’ discretion over tenant selection, potentially increasing risks related to affordability or property care.
End the practice of rental bidding: Landlords and agents will be prohibited from accepting offers above advertised rents. This restricts flexibility in pricing strategies and may reduce opportunities for higher rental income in competitive markets.
Strengthen local authority enforcement: Local authorities will gain expanded powers for enforcement and penalties. Landlords may face increased oversight, reporting requirements, and higher fines for non-compliance.
Strengthen rent repayment orders: Penalties for repeat offenders will double, and superior landlords can now face repayment orders. This creates greater financial risks for landlords who fail to comply with regulations.
Background
The private rented sector in England is overdue for reform, with many tenants facing unaffordable, poor-quality, and insecure housing. While most landlords provide a good service, some exploit the system, leaving tenants vulnerable to sudden evictions or unsafe living conditions.
A fairer system would offer stability for families, protect tenants from retaliatory evictions, and support responsible landlords. Reform is essential to creating a housing market that gives everyone the chance to thrive.
Tenancy Reform
The Renters’ Rights Bill will overhaul the tenancy system, ending section 21 evictions that displace renters without cause. Tenants will gain more security, stability, and confidence to challenge poor practices without fear of eviction. Landlords will benefit from clearer rules and expanded possession grounds.
Periodic Tenancies
The Renters’ Rights Bill will abolish fixed-term tenancies, giving tenants more freedom to leave unsuitable homes. All tenancies will be periodic, allowing renters to end their tenancy with 2 months' notice, offering greater flexibility and protection against substandard living conditions.
Grounds For Possession
The Renters’ Rights Bill will abolish fixed-term tenancies, giving tenants more freedom to leave unsuitable homes. All tenancies will be periodic, allowing renters to end their tenancy with 2 months' notice, offering greater flexibility and protection against substandard living conditions.
Landlords will have clearer grounds to reclaim properties, such as selling or moving in, with a 4-month notice period. Tenants will be protected from eviction in the first 12 months and have more time to find new homes. Rent arrears thresholds will increase from 2 to 3 months, giving tenants a better chance to catch up on payments while supporting landlords' rights.
Rent Increases
The Renters’ Rights Bill will abolish fixed-term tenancies, giving tenants more freedom to leave unsuitable homes. All tenancies will be periodic, allowing renters to end their tenancy with 2 months' notice, offering greater flexibility and protection against substandard living conditions.
Landlords will have clearer grounds to reclaim properties, such as selling or moving in, with a 4-month notice period. Tenants will be protected from eviction in the first 12 months and have more time to find new homes. Rent arrears thresholds will increase from 2 to 3 months, giving tenants a better chance to catch up on payments while supporting landlords' rights.
Implementation
The Government will implement the new private rented sector tenancy system through a single-stage rollout to abolish Section 21 "no-fault" evictions immediately. All existing tenancies will automatically convert to periodic agreements on the implementation date, with new tenancies following updated rules. Landlords will be permanently barred from issuing new Section 21 notices or legacy Section 8 possession orders, creating uniform tenant protections across the market and preventing transitional complexity.
The Government confirms transitional provisions will maintain pre-implementation rent adjustments and valid notices while coordinating sector-wide implementation support. Parallel reforms will extend Section 21 abolition to privately managed social housing after updating the Regulator of Social Housing's Tenancy Standard through required consultations. Most social tenants already hold secure assured tenancies unaffected by Section 21, with reforms primarily targeting residual short-term social housing arrangements.
The government aims for Royal Assent by summer 2025, with full implementation targeted for October 2025 to allow a transition period for landlords, tenants, and local authorities.
Rent In Advance
The Government’s Renters’ Rights Bill prohibits landlords and agents from demanding excessive upfront rent, capping advance payments at one month (or 28 days for shorter rental periods) *after* tenancy signing. The legislation updates existing tenant protection laws to ban pre-tenancy rent demands and invalidates advance payment clauses in rental agreements, addressing exploitative practices that lock tenants into unaffordable financial commitments. These changes aim to reduce barriers to housing access while maintaining landlords’ right to collect first-month rent upon occupancy.
Private Rented Sector Landlord Ombudsman
The Government mandates all private landlords in England to join a compulsory Ombudsman Service, requiring binding resolution of tenant complaints – including compensation orders, apologies, or corrective actions – at no cost to renters. Landlords gain access to dispute resolution guidance while tenants secure enforceable outcomes without court delays, even if properties are managed through agents.
Non-compliant landlords face civil penalties up to £40,000, rent repayment orders, and marketing bans, with councils empowered to prosecute repeat offenders. Expulsion from the scheme triggers enforcement action, though readmission is permitted after rectifying breaches and implementing Ombudsman rulings.
Private Rented Sector Database
The Government’s Renters’ Rights Bill establishes a mandatory PRS Database requiring landlords to register all rental properties in England, with penalties for marketing or leasing unregistered units. Landlords must submit property and ownership details, gaining centralized access to compliance guidance and regulatory updates through the platform. Failure to register risks fines up to £40,000 and criminal prosecution for repeat violations.
The database equips tenants with transparent property histories to challenge rights violations, while councils use its verified ownership and compliance data to swiftly target illegal landlords. This eliminates administrative bottlenecks, redirecting enforcement resources toward systemic offenders rather than protracted investigations.
Prohibiting Rental Discrimination
The Government’s Renters’ Rights Bill bans rental discrimination against tenants with children or those receiving benefits, outlawing explicit bans (e.g., “No DSS” ads) and indirect exclusion tactics. Landlords and agents retain authority to reject applicants based on affordability checks but cannot penalize prospective tenants for family status or state support.
These protections apply across England, with parallel provisions extended to Wales and Scotland through intergovernmental collaboration. The reforms mandate fair tenancy assessments while preserving landlords’ rights to vet financial viability, ensuring housing access aligns with modern equity standards.
Rental Bidding
The Government’s Renters’ Rights Bill prohibits landlords and agents from instigating or accepting rental bidding wars, mandating fixed asking rents for all properties in England. The legislation bans soliciting or approving offers above advertised prices, eliminating exploitative bidding practices that inflate costs during housing shortages. Landlords must transparently set and adhere to published rates, ensuring prospective tenants face standardized pricing rather than competing financial pressures. This reform targets unscrupulous operators leveraging market imbalances while maintaining landlords’ right to set initial rental values.
Renting With Pets
The Government’s Renters’ Rights Bill prohibits arbitrary landlord restrictions on pets, mandating approval unless objectively justified while allowing tenants to request binding review of refusals. Landlords may require tenants to obtain pet damage insurance, transferring liability for repairs while preserving property protections. Pre-implementation guidance will clarify responsibilities for both parties, balancing tenant pet ownership rights with safeguards against property harm.
Decent Homes Standard
The Government’s Renters’ Rights Bill prohibits arbitrary landlord restrictions on pets, mandating approval unless objectively justified while allowing tenants to request binding review of refusals. Landlords may require tenants to obtain pet damage insurance, transferring liability for repairs while preserving property protections. Pre-implementation guidance will clarify responsibilities for both parties, balancing tenant pet ownership rights with safeguards against property harm.
Awaab’s Law
The Government’s Renters’ Rights Bill extends Awaab’s Law to private rentals, requiring landlords to address hazards like damp and mould within strict timeframes. Inspired by the Social Housing (Regulation) Act 2023, this measure empowers tenants to challenge unsafe conditions and take legal action if landlords fail to comply, ensuring all renters in England have safer homes.
Enforcement and Investigatory Powers
The Government’s Renters’ Rights Bill enforces compliance through a robust framework, empowering councils to issue civil penalties of up to £7,000 for minor infractions and up to £40,000 for serious or repeated offenses, with the option for criminal prosecution. Councils gain enhanced investigatory powers, including information requests and premises entry rights. To support enforcement, councils will receive full funding for additional costs incurred under the New Burdens Doctrine, ensuring effective implementation without financial strain.
Rent Repayment Orders
The Government’s Renters’ Rights Bill strengthens rent repayment orders (RROs) as a key enforcement tool for tenants and local authorities. RROs empower tenants to act against non-compliant landlords and are available when rent is paid via Universal Credit or Housing Benefit. The reforms enhance RROs' deterrent impact, simplify their use, and expand their applicability across the sector, bolstering tenant protections and accountability for landlords.
