What changes will the Renters Rights Bill introduce?

The Renters’ Rights Bill (the Bill), due to be implemented shortly, seeks to ‘transform the experience of private renting’.

The Bill seeks to provide private renters with greater security and stability, and impose firmer standards on the private rental market.

1. Tenancy reform

The Bill will bring an end to landlords’ rights to regain possession of a property where there has been no wrongdoing by the tenant, more commonly known as ‘no fault eviction’. The Bill instead introduces alternative grounds on which landlords may rely to evict tenants. For example, grounds include an intention to sell the property,  antisocial behaviour of the tenant or where the tenant has fallen into significant arrears.

The Bill will remove fixed-term ASTs and instead all tenancies will become ‘assured periodic tenancies’, meaning that they will run from month to month where rent is paid on a monthly basis. As a result tenants may be able to remain in occupation for an undefined period of time. This change will also provide tenants with greater flexibility, whereby tenants will only need to provide two months’ notice to vacate.

2. Grounds for possession

The Bill sets out over 30 discretionary and mandatory grounds for possession, and these can be claimed by a landlord at any point during the tenancy. As mentioned above, such grounds include antisocial behaviour, damage to the property and significant arrears being incurred.

In particular, the Bill has also bolstered  a landlord’s right to reclaim the property in circumstances where they wish to live in the property or sell on the open market. It is important to note that landlords will not be able to exercise the right to reclaim the property in the first 12 months of the tenancy; subject to this, a landlord may serve 4 months’ notice on the tenant of their intention to reclaim the property.

3. Rent

3.1 Rent increases

Landlords will only be able to increase rent annually and this will be limited to the market rate (the amount that would be achieved if the property was marketed to let). 2 months’ notice must be provided to the tenant, and if disputed by the tenant, the matter may be determined by the First-tier Tribunal.

Rent review clauses and other methods of increasing rent in the tenancy document will no longer be permitted.

3.2 Rent in advance

The Bill will prevent landlords from requesting or accepting any more than 1 months’ rent in advance of the commencement of the tenancy. This does not prevent tenants from paying the rent prior to the rent payment date as set out in the tenancy agreement.

3.3 Rental bidding

The Bill will require landlords/letting agents to publish an asking rent for the property and will prohibit asking for, encouraging or accepting bids above the asking rent.

4. Mandatory record keeping

4.1 Private Rented Sector Landlord Ombudsman Service

All private landlords will be legally required in due course to join a new Private Rented Sector Landlord Ombudsman Service, even where  a managing agent is instructed. When up and running, this platform that will allow tenants to raise a complaint about the behaviour and actions of their landlord. Landlords may be compelled by the Ombudsman to apologise, pay compensation, take action or provide tenants with information in relation to their complaints.

If a landlord refuses to join the service tenants can seek rent repayment orders, and there will be civil penalties of up to £7,000 for initial breaches, and up to £40,000 or criminal prosecution for continuing or repeated breaches. It is anticipated that landlords will have to pay a small fee per property in respect of the Service.

4.2 Private rented sector database

This database is anticipated to act as a ‘one stop shop for landlords.’ Landlords  will be legally required to join, and the database  will store information for landlords about their responsibilities and their properties. This database will also be utilised by local governments to collect data on privately rented properties.

5. Pets for lets – prohibiting discrimination

Whilst landlords and agents will still be able to review prospective tenants based on references and affordability criteria, they will no longer be able to reject someone based on whether they are in receipt of benefits or if they have children/pets.

Landlords may be exempt from the above where they have live insurance policies that prohibit lettings to those in receipt of benefits or with children that pre-date the Bill coming into force.

Safety / Awaab’s Law

The Bill seeks to apply the  ‘Decent Homes Standard’ to the private rental sector; including provisions to prevent tenants being exposed to damp and mould which will mirror the provisions being brought into force in the social rented sector under Awaab’s Law (named after two-year-old Awaab Ishak, whose death was attributable to prolonged exposure to mould in his home). A recent Government consultation has proposed that it would be an enforceable requirement  from 2035 or 2037 (see are our article here for more information). Properties will need to meet the standard prior to occupation.  Local councils will have delegated enforcement powers to ensure standards are met.

The impact of the proposals on the private rented sector remains to be seen. Clearly there are rental properties that are not meeting suitable standards but there are concerns that the legislation could deter investment in the sector or cause some landlords to withdraw from the market.

If you have any questions, our Real Estate and Real Estate Disputes teams would be happy to help.