Following the King's Speech in July, the new Labour government has introduced the Renters' Rights Bill (RRB), which aims to significantly reform the private rental sector in England. As a landlord, it's crucial to understand how these proposed changes may impact you. We’ve summarised the key points below:

Timeline for implementation

The bill is in its early stages, having had its first reading on 11^th September 2024. However, the government hopes to have the new tenancy system in place by summer 2025.

Major changes proposed

Abolition of Section 21 'no-fault' evictions: This will apply to both new and existing tenancies, providing immediate protection to private renters. The government aims to have this ban in place by next summer. There will be a single date after Royal Assent and Commencement for the removal of Section 21 evictions, which is not dependent on court reform happening first.

Rent increase limitations: Landlords will be limited to raising rents once a year for existing tenancies, and only to the market rate. There will also be a ban on in-tenancy rent increases written in to contracts.

Pets in lets: Landlords must consider and cannot unreasonably refuse a tenant's request for a pet. However, you may request insurance to cover potential damage from pets if needed.

Decent Homes Standard: All private rental homes must meet a new safety standard. Failure to address hazards could result in fines up to £7,000 and potential prosecution.

Awaab's Law: This law, already in place for social housing, will be extended to the private sector. It requires landlords to follow strict timescales for inspecting and repairing hazards like damp and mould.

Non-discrimination: It will become illegal to discriminate against tenants who receive benefits or have children.

New systems and protections

The bill also introduces:

• A digital database to help tenants make informed decisions and assist landlords with compliance
• A new Property Ombudsman to settle disputes without court involvement

Other changes include

• An end to fixed-term tenancies and move to rolling periodic tenancies
• Tenants can stay in their home until they decide to end the tenancy by giving two months’ notice or the landlord can evidence a valid ground for possession. Landlords will need to give four months’ notice to move in or sell the property, but there is a 12-month protected period for tenants at the beginning of a tenancy
• A new ground for possession will allow landlords renting to students in HMOs to seek possession ahead of each new academic year
• Rent Repayment Orders will be expanded so they are wider in scope and for repeat offenders, and fines will be increased in line with inflation
• A ban on rental bidding wars with letting agents and landlords to be legally required to publish rent for their property and then unable to ask or accept any bids above this price

Renters' Rights Bill: next steps

While the bill is still in its early stages, it's clear that significant changes are on the horizon for the private rental sector. We recommend staying informed about the bill's progress and considering how these changes might affect your property management strategies. As a landlord, staying informed about changing regulations is essential, but so is understanding the financial impact of buying additional rental properties. Use our buy-to-let stamp duty calculator to estimate the tax costs when expanding your rental property portfolio.

Get in touch

We'll continue to provide updates as the Renters' Rights Bill progresses through Parliament. In the meantime, contact our local lettings experts below if you have any questions or concerns about how these changes might impact you.