The Renters’ Rights Bill has just passed its latest stage in the House of Commons, marking a significant moment for the private rental market in England. In this article, we’ll explore the key developments, what this legislation means for landlords, tenants, and anyone considering selling their rental property investments.
Renters’ Rights Bill – What’s Happened So Far
The Labour Government introduced the Renters’ Rights Bill in September 2024, with the aim of creating a fairer, more secure rental system for tenants.
Key proposals in the legislation include:
- Making all tenancies periodic.
- Abolishing Section 21 ‘no-fault’ evictions.
- Introducing stricter rules on rent increases, keeping pets, and property standards.
- Establishing a national database of rental properties.
- Creating an ombudsman system for resolving disputes.
Since its unveiling, the Bill has undergone extensive debate in the House of Commons, where MPs reviewed and proposed amendments. On January 14, during the report stage, MPs debated the Bill for a final time and voted on the amendments. Most of the original proposals were agreed upon and are now on track to become law.
Key Takeaways for Landlords
The Renters’ Rights Bill will introduce several significant changes, including:
- Abolition of Section 21 Evictions
When the Bill becomes law, Section 21 evictions will be abolished, meaning landlords will no longer be able to evict tenants without providing a valid reason. Tenants will have greater security, as they can remain in their homes as long as they abide by their tenancy agreement. Landlords can regain possession only if they wish to sell the property or move in themselves. - Limits on Advance Payments
A new amendment passed during the report stage will restrict landlords and agents to requesting a maximum of one month’s rent in advance. Security deposits will still be allowed, but this change aims to make renting more accessible for tenants. - Periodic Tenancies
All tenancies will automatically become periodic, giving tenants flexibility and stability while making it harder for landlords to set fixed-term agreements that limit tenants’ rights. - New Property Standards and Database
Landlords will need to meet higher property standards, with stricter compliance expected. The introduction of a national rental property database will create more transparency and accountability in the private rental sector. - Ombudsman System
A mandatory ombudsman system will provide tenants and landlords with a structured process for resolving disputes, reducing the need for lengthy and expensive legal battles.
When Will the Renters’ Rights Bill Become Law?
The Bill now moves to the House of Lords for further debate and voting. After passing through the Lords, it will require Royal Assent before becoming law. While an exact timeline remains uncertain, the speed at which the Bill has progressed suggests it could come into effect in the next few months.
What Landlords Should Do Now
Although some details, such as the national database and ombudsman system, are still being finalised, landlords should prepare for major changes to landlord-tenant law in 2025. Steps you can take now include:
- Reviewing your current tenancy agreements to ensure compliance with upcoming changes.
- Budgeting for potential updates to meet the new property standards.
- Keeping up to date with the latest news about the Renters’ Rights Bill and its implementation.
If you’re a landlord and need advice on letting or managing your property, our team is here to help. We can guide you through these changes and ensure your investments remain compliant and profitable.
Know someone who might find this update helpful? Share it with them and help spread the word.
Important Links
Book a Lettings Valuation
Visit our Royston Facebook Page
Visit our Newmarket Facebook Page
