Renters Rights Bill Summary

There are changes due to the property rental market in 2025.  Its almost certain that these changes will be taking place by summer this year and will take effect as soon as the new laws come in force.

I have included a link to the Renters Rights Bill.   Here is a summary of areas of the bill to consider:

The changes are to create a safe, fair, transparent system.  Strengthening tenant protection, improve accountability.

Below is a summary of the bill and whats in store for the industry

  • Tenant Discrimination
  • Rental agreements will change
  • Tenant Security
  • Tenant references
  • Ban on taking rent in advance
  • Changes to rent reviews / rent increases
  • Abolition of Section 21
  • Changes in giving tenants notice for possession
  • Landlord responsibilities
  • Deposit protection
  • PRS Ombudsman for landlords
  • Rent repayment orders
  • Decent Homes standards
  • Awaabs Law
  • PRS property database

Lets explore more..

Its important to note that the new legislation will come into force as soon as it is in effect .

  • The Bill will remove no fault evictions and remove the Section 21.
  • There will be changes to the Section 8 with the expansion on both mandatory and discretionary grounds.
  • Landlords can only use a section 13 for rent increases
  • The AST will no longer be used – This will be replaced with the Assured periodic Tenancy
  • Tenants can give notice any time in line with their rental due date
  • Tenants have the legal right to a pet, landlords must give a time frame to answer and supply a reason for not wanting a pet.
  • All landlords must carry out thorough tenant referencing to fulfill insurance requirements. Including Right to Rent Checks .
  • All landlords must register with the property ombudsman- Regardless if they have an agent or not.
  • All landlords will need to register with the PRS database, we will explore issues by not registering .

New Tenancy

  • The new tenancy will be a Assured Periodic Tenancy – which cant be fixed greater than 1 month.
  • The rent in advance cannot be taken for more than 1 month and not collected before a tenancy is signed for.
  • The new bill will take effect after your next rent payment. All fixed term contracts will end as soon as the bill takes affect.
  • Any rent in advance collected before the bill , does not need to be paid back to the tenant.  However when their next rent is due.  They will automatically revert to the new rules.
  • The process for securing a new tenancy will change in order to secure the tenancy and remain compliant with the new rules.
  • The tenants must have a written agreement, which they view prior to signing
  • Landlords must inform all tenants of the changes 1 month after the bill takes place
  • Written tenancies don’t need to be renewed, but the landlord has 1 month to inform the tenant of any changes or new guidance.

Rent Increases

  • Rent review clauses / rent reviews will be void
  • To increase the rent a Section 13 must be used at all times
  • Notice for rent increase is 2 months
  • You can increase the rent once a yr and inline with the market base rate
  • Tenants can challenge the increase by property tribunal at any time before the increase is due to take place.
  • The rent increase will then take place after the tribunal has been heard.
  • A tribunal can reject a Section 13 if filled in incorrectly.

Council Tax

  • Under new legislation tenants are responsible for Council tax until their notice period ends regardless of when they move out.

Notices- Possession

  • Tenants can give notice anytime inline with their rent due dates ( the period is 2 Months Notice)
  • Tenants can give notice in written form.  This can be seen as served even if it is by whats app, email, text as well as letter.
  • If a tenant is in a joint tenancy, and they serve notice the whole contract comes to and end. It effects everyone in the tenancy.
  • Notice can only be retracted if landlord & tenant consent
  • If a Section 21 has already been served . The landlord must initiate a court claim asap. Within 3 months of the bill to be able to seek possession by section 21.
  • Landlord cant gain possession if they are not registered with the PRS ombudsman
  • landlord cant gain possession if they are not registered wit the PRS data base

PETS

  • Landlords can decline a pet request on individual circumstances, if the tenant feels it is unfair they can escalate through the PRS ombudsman & courts.
  • Approval of pets – landlords have 28 days to respond either approve or deny.
  • Tenants can obtain pet insurance or cover landlords cost of the pet insurance.

Discrimination

  • landlords are unable to discriminate against tenants on benefits or with families
  • landlords cant stop a tenant from inquiring, receiving information or applying for the property if they are on benefits.
  • landlords must still assess the tenant on affordability and suitability without review
  • referencing and affordability checks must be carried out.
  • Tenant affordability must be 3 times the rent and they spend no more than 30% on their housing costs.
  • Insurances, mortgages, superior leases are unable to discriminate also

Bidding wars – Negotiation

  • Landlords cant take more than the asking price
  • Landlords must state how much the rent is and terms of payment in their adverts, this must be clear
  • Prices must be fair and inline with the current market
  • Tenants can challenge the rent in a tribunal
  • Local authority will fine up to 7k for taking more rent than advertised

Guarantors

  • The guarantor needs to be aware of their responsibility before signing.
  • The guarantor will be liable for the whole duration of the tenancy ( full lifetime)
  • A review of your guarantor agreement must be made.  A deed of Guarantee will still be valid after the bill because it covers the life time of the tenancy.
  • When a tenant dies the Guarantor responsibility ends the date the tenant passes

Rent to Rent

  • Rent repayment orders have been expanded to enforce landlords and their agents
  • Now a landlord is responsible for their rent to rent operators actions
  • Any violations by the rent to rent operator the superior landlord will be accountable for
  • Removal of vacant possession when the Rent to Rent term ends.
  • When a rent to rent term ends with vacant possession ( this now has to end with grounds for possession)
  • A superior landlord will be liable to pay a rent repayment order even if they didn’t receive any rent or violate any conditions.

Rent Repayment

  • Tenants can apply to first tier tribunal for rent repayment
  • Tenants can receive up to 2 years of rent paid back
  • There has been an expansion to the offences when rent repayment order will take affect
  • Knowingly and recklessly using a possession ground
  • Letting / marketing a property during restricted periods
  • Breaching redress scheme requirement
  • Breach of new tenancy rules
  • Failure to offer written terms
  • Offering a fixed term greater than 1 month
  • trying to end a tenancy orally
  • Providing false info to the PRS database
  • Breaching the PRS database requirements

Deposit Protection

  • The court can only grant a possession if the deposit was adequately protected
  • The tenant must have had the prescribed information and certificate within the time limits
  • Protection of the deposit and required certificate and information issued to tenant within 30days
  • Courts will allow landlords who failed to protect the deposit to gain possession, however the landlord will be fined for not following the rules but still has right to apply for possession once the correction is made.

Changes in Grounds

  • Tenants must be in 3 months arrears  ( 13 weeks) to use the arrears grounds 8,10,11
  • Notice period has increased to 4 weeks from the original 2 weeks
  • delays in Universal credit cant be included in the arrears when making calculations
  • Ground 7a + 14 for anti social behavior is a immediate notice.  However agents of HMO must have evidence collected from all tenants to be able to gain possession. Court cant grant possession earlier than 14 days from the notice date. Evidence is the main key to this. Strict evidence collecting must be adhered to.

Student tenancies

  • Student household considered , 3 tenants from 2 or more households.
  • Not valid on a 1 bed or 2 bed house
  • landlords must give prior notice 1 month before the tenancy begins . 1 month before commencement for existing tenants
  • The student test is all tenants must be full time students or expect to be when the tenancy starts.
  • Possession can only be sought between 1st June – 30th September if re let to another group.
  • landlords cant agree tenancies 6 months before the start date

New standards / enforcement

  • Decent Homes standard
  • Awaab  s Law
  • PRS Ombudsman
  • PRS Database

Decent Homes Standards

  • A set of minimum standards to ensure the property is safe, has basic amenities, adequate heating , hot water , is free from hazards
  • The home must be in reasonable state of repair- well maintained , major elements, roof, windows and plumbing and electrics all in good order
  • Homes should be modern with modern facilities, adequate space and ventilation
  • Free from hazards, damp and mould and unsafe living
  • A minor offence, the local authority can issue a £7k fine.
  • repeated offences or non compliance fines can be up to £40K

Awaab law

  • Legislation named after a 2 year old that died in social housing home that was full of damp mould
  • This law is to give tenants better protection
  • Protection from unsafe living
  • Better response times to issues
  • Stronger legal rights
  • Empowering tenants to challenge unsafe living
  • Applies to all tenancies and complaints with regards to any issues are made to the PRS ombudsman.
  • Ombudsman will help with rectifying the issue as well as compensation to the tenant
  • Landlords have14 days to investigate damp
  • Written report 14 days with a solution for the damp
  • Within 7 days the repair work must take place.
  • Mould spours in properties must be cleaned within 24 hours , whilst investigations are taking place.

Landlords Ombudsman

  • All landlords will be required to join the Property Ombudsman scheme and a yearly charge for this will apply
  • All Agents must check the landlord is a member of the scheme. Agents will risk fines for not checking the landlord is a member of the Ombudsman scheme.
  • Agents advertising properties without the confirmation that the landlord is a member will also risk fines
  • landlords letting a property without membership will risk a £7k fine
  • Tenants can complain via agents or landlords ombudsman scheme
  • Both will need to be members
  • If landlords have properties in companies / their own then both will need to be covered

PRS Database

  • All landlords must be registered on the PRS register
  • Landlords with companies or properties in personal name must be registered
  • Registration required for every legal entity
  • Even when using an agent
  • Agents are at risk of fines if landlords are not registered
  • Landlords cant serve notice on a tenant if not a member of the PRS database
  • Civil penalties for landlords that don’t apply
  • Councils will have extra powers to enter a property without warrant if they suspect that its not included in the database
  • Agents must have proof the landlord is on the database before marketing

Click the icon below to find the Renters Rights Bill

Please keep a check on updates regarding the bill