The Renters (Reform) Bill failed to pass into law before the general election and so the current Labour Government has introduced a new bill, The Renters’ Rights Bill, which is still in progress and not yet law.
The Renters’ Rights Bill aims to reform the rental market including the removal of “No Fault” evictions and balancing the rights of tenants and Landlords. It will remove the fixed-term assured tenancies and all tenancies will be periodic, meaning tenants can stay until they decide to end the tenancy by giving notice.
The key points of the Renters’ Rights Bill are:
- Abolition of Fixed-Term Tenancies (ASTs) – all tenancies will become periodic, meaning they will run from month to month until either the tenant or landlord ends the tenancy. Tenants will be able to end their tenancy with two months notice and landlords will no longer be able to evict tenants without a valid reason. The government will expand and update both mandatory and discretionary grounds for possession to replace the abolition of the Section 21 notice, also known as a “no-fault eviction notice” which is a legal document used by landlords in England to evict tenants from a property, particularly those with an assured shorthold tenancy, without the need to prove any fault by the tenant.
- Rent Increases – Landlords will only be able to increase the rent once per year and tenants will be able to challenge excessive rent increases through the appropriate tribunal. Landlords and agents will not be able to accept offers above the advertised rental price.
- Tenant Protections and Landlord Responsibilities – A Private Rented Sector database will be created to compile information about landlords and properties aiming to improve transparency and compliance. A Private Rented Sector Landlord Ombudsman will be introduced to help resolve landlord and tenant disputes.
- Landlords will be required to address hazards, such as damp and mould within a specified time and all rental properties must meet minimum quality standards.
- A landlord cannot discriminate against tenants receiving benefits or with children and landlords cannot unreasonably refuse pet requests but can require pet insurance.
- Landlords can only require a maximum of one month’s rent in advance.
- The bill strengthens Rent Repayment Orders, expanding their applicability and coverage.
Landlords should now consider offering a monthly tenancy agreement to future tenants and moving any assured shorthold tenancies and fixed-term assured tenancies to monthly tenancies when the term ends to fall in line with the proposed periodic tenancies.
In the new proposal Landlords can only require one month’s rent to be paid in advance. This could be an issue for Landlords who are worried about a tenant’s ability to pay the rent or the Landlord’s ability to take enforcement action in respect of any non-payment. This may also be an issue for tenants who may be happy to make an upfront payment to secure the letting and who may otherwise be unable to satisfy the Landlord’s letting criteria.
The bill is expected to become law in late 2025.
We suggest that Landlords should check their current tenancies and if they have any concerns, or are considering any eviction action to contact Chris Tagg in our Litigation Department as soon as possible for further advice. If Landlords are entering into new tenancies we would suggest that you ensure they meet the expected new requirements and if you have any tenancy queries please speak with your letting agent.
If you would like to contact our team for further advice please do not hesitate to call us:
Cullompton 01884 33818
Exeter 01392 285000