How will the Renters' Rights Bill affect landlords and tenants?
Published 30th September By Susie Barford
How will the Renters' Rights Bill affect landlords and tenants?
It's the big question on everyone's lips as we wait in anticipation for the Renters' Rights Bill to go through parliament, and after so many iterations of the drafted Bill, we're not surprised there is some confusion going on. Hopefully our breakdown of the proposed Bill's key implications for landlords and tenants will be able to help you.
The Bill, as currently drafted, introduces significant reforms on tenancy types, eviction, rent increases, property standards, and more. Below, I summarise the major changes and implications — but keep in mind that these may be altered through parliamentary debate or regulations.
Key changes proposed in the Bill
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Abolition of Section 21 “no-fault” evictions
- The Bill would remove the ability for landlords to evict tenants without giving a reason (via Section 21 notices).
- Instead, landlords would have to rely on a set of statutory grounds for possession (e.g. rent arrears, breach of tenancy, wanting to sell or move in).
- If a valid Section 21 notice had already been served before the commencement date, landlords typically would still be allowed a limited period (often up to 3 months) to initiate possession under that notice.
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Replacement of fixed‑term tenancies with periodic tenancies
- The Bill would abolish assured shorthold tenancies (ASTs) and fixed-term tenancies in the private rented sector. All tenancies would become rolling (periodic) unless otherwise agreed under regulation.
- Tenants would be able to give notice (usually two months) to leave.
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Reform of grounds for possession / landlord rights
- Expanded and revised grounds for landlords to seek possession, including grounds for sale or family move-ins.
- For some grounds (e.g. wanting to sell), landlords may need to give 4 months’ notice, and cannot serve such notice until after the tenant has held occupation for a minimum period (e.g. 8 months).
- After giving notice, landlords may be subject to restrictions such as not being allowed to market the property for rent within 12 months after a notice expires or a claim is filed.
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Controls on rent increases / challenging rent rises
- Landlords would only be allowed to increase rent once per year, giving at least two months’ notice (using a statutory “section 13” style notice).
- Tenants would be empowered to challenge rent increases they believe exceed “market rate” via the First‑tier Tribunal (Property Chamber).
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Ban on “rental bidding” and requiring published asking rents
- Landlords and agents must publish an asking rent and cannot accept or invite “bids” above that rent.
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Limits on upfront payments / deposits
- The Bill proposes capping the advance rent that can be demanded (e.g. no more than one month’s rent in advance) in many cases.
- There may be restrictions on charging guarantors, especially in the event of bereavement.
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Decent Homes standards, property conditions & enforcement
- The Bill would extend Decent Homes style standards (which already apply in social housing) to the private rented sector. Landlords would have legal obligations to maintain safe, decent conditions.
- Related to this is “Awaab’s Law” (named after a child who died due to mould exposure) — the Bill would enforce deadlines for landlords to respond to serious hazards (e.g. damp, mould) in private rented homes.
- Local housing authorities will gain powers for inspection, enforcement, penalties, and rent repayment orders.
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Pet requests, anti-discrimination, dispute resolution / ombudsman, landlord database
- Tenants will have the right to request a pet; landlords cannot unreasonably refuse (though they may impose conditions like requiring insurance).
- The Bill prohibits discriminatory treatment against tenants receiving benefits or with children.
- A private rented sector ombudsman / dispute resolution scheme is proposed to help resolve disputes outside court.
- A landlord database / registration scheme is proposed, to improve transparency and enforcement.
Implications & challenges for landlords and tenants
Here’s what both sides should watch out for and prepare:
For landlords:
- Greater procedural burden and risk
With no more Section 21 evictions, landlords will need to have valid grounds, evidence, and follow stricter notice protocols. Failing to do so may result in claims or refusal of possession. - Uncertainty in rent setting / risk of challenges
Rent increases will be more regulated, and tenants can challenge rises. Landlords will need to justify that increases are in line with market value. - Increased compliance / maintenance obligations
Ensuring properties meet decent standards, dealing quickly with hazards, and maintaining more rigorous records will become more important. - Transitional issues with existing contracts
Existing fixed-term tenancies may convert to periodic ones, and clauses (e.g. break clauses, rent review clauses) might become void or overridden by the new law. - Cash flow / financial risk
The inability to evict quickly under Section 21 may increase landlord exposure to non-paying or difficult tenants. Some landlords may exit the market, or reduce their portfolios. - Costs of adaptation
Landlords may need to review all leases, train themselves or agents, adjust policies, and possibly invest more in property upkeep upfront. - Potential increase in litigation / tribunal cases
With more grounds being contestable (rent, possession), disputes could shift more to tribunals or mediation. - Impact on supply & investor sentiment
Some forecasts suggest landlords may reduce letting activity or cease operations, potentially reducing supply.
For tenants:
- Greater security / protection
The abolition of “no-fault” evictions is a major win: tenants cannot be evicted simply because the landlord wants to regain possession without cause. - Ability to challenge rent increases
Tenants can dispute rent rises they feel are unfair. - Transparency in pricing
Banning bidding wars and requiring published asking rents promotes fairness in the rental market. - Stronger rights over living conditions
Landlords will be legally obligated to respond to serious repairs and hazards in a timely way. - Right to request a pet
While not absolute, landlords will need to consider and give reasons if refusing a pet request. - Fairer deposit / upfront payment rules
Limits on advance rent demands will reduce the financial barrier of moving in. - Clear dispute resolution routes
Use of an ombudsman or clearer procedures will help tenants in resolving issues without always going to court.
Despite our deep dive on the topic above, it is always important to do your own research and keep an eye on any changes in legislation before it is passed into law because we do not offer legal advice as estate agents. However, we hope this blog will have offered some guidance about what to expect to our landlord clients and tenant customers. If you are still anxious about the changes coming in with the Renters' Rights Bill, do not hesitate to reach out to the Rickman team if you want to discuss this issue further, or list your property in Prime Central London for sale or to let.
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