Renters’ Rights Bill receives Royal Assent – What does it mean and what comes next?

What’s Changing?

No more ‘no fault’ evictions

A Section 21 notice allows landlords to end a tenancy through no wrong-doing by the tenant; the new bill removes the right for a landlord or agent to serve a Section 21. It meant they could regain possession of their property once the fixed-term contract had expired. For tenants, this new law gives much more stability, and allows them to have more confidence when asking for repairs. A survey by Renters’ Voice in 2024 found that 62% of respondents had delayed reporting a repair for fear of being evicted, and 52% had decided not to report at all because of that fear. 

This may reduce flexibility for landlords, but they will still be able to regain possession of their property through the revised ‘grounds for possession’ route. If they are wanting to move into the property themselves, or offer it to a close family member or friend, they just need to provide a four-month notice period. This cannot be implemented in the first 12 months of the tenancy. 

Of course evictions can still take place if there are genuine problems caused by the tenant, such as rent arrears or anti-social behavior. 

A Move to Periodic Tenancies

Fixed term assured shorthold tenancies will be replaced with rolling (periodic) tenancies. 12-month or 6-month fixed contracts are very common right now; however, this will move to rolling tenancies which will continue until either party gives notice. 

The new periodic contract means tenants need to give 2 months notice to end the tenancy. 

Rent Increases, Bidding, and Upfront Payment

With the new legislation, landlords can issue a maximum of one rental increase every 12 months, and must give prescribed notice. If the tenant feels the increase amount is unreasonable and above market rates, it can be fought at a First-tier Tribunal. 

Prospective tenants can no longer offer a ‘bid’ on a rental property; the landlord or lettings agent won’t be able to accept any offers above the asking rent. This measure will prevent renters getting caught up in bidding wars, however will likely cause an increase in initial asking rents. 

Upfront rental payments will also be restricted, with landlords only being able to ask for one month’s payment upfront, plus a security deposit. 

Decent Homes Standard

Originally introduced for social housing, the DHS is the minimum standard at which a property should be in whilst being rented. It ensures a safe and warm place for people to call home, and is being introduced to private rentals under this act. In essence, the home should:

• Be free from category 1 hazards (serious health & safety risks)
• Be in a reasonable state of repair (roof, walls, windows, heating etc)
• Have reasonably efficient heating and insulation
• Provide adequate facilities and services for tenants

Data shows that 23% of properties rented privately do not meet this criteria. Enforcement powers will be enhanced, meaning that civil penalties of up to £30,000 can be issued, and Rent Repayment Orders will be increased to a maximum of 24 months (previously 12 months.)

Blanket-Bans Outlawed and Anti-Discrimination Measures

Landlords and agents will not be able to refuse prospective tenants simply because they receive benefits or have children, decisions must be based on individual criteria. It goes beyond just ‘direct discrimination’, and will also target indirect practices that have the same effect – for example, requiring higher deposits or extra guarantors only from those on benefits or with children. 

It also gives tenants the right to request a pet to move into the property, either during or at the beginning of the tenancy, and the landlord cannot unreasonably withhold consent. Adverts, letting criteria, and selection processes must not use blanket bans such as ‘no families’, ‘no pets’, or ‘no DSS/benefits’’, when they are not objectively justified. 

Landlords and lettings agents will retain the right to assess affordability, income, and references, but the decision must be based on the tenant’s sustainability rather than the fact the tenant receives benefits or has children or pets. 

Private Rented Sector Landlord Ombudsman

It will now be mandatory for nearly all private landlords with assured or regulated tenancies to join a new entity. The aim is to provide free, impartial, binding redress for tenants’ complaints; tenants can first raise a complaint directly with their landlord or managing agent, allowing them a ‘reasonable time’ to respond. 

The new ombudsman will require a landlord to take remedial action, provide information, and/or award compensation to the tenant. It’ll be a quicker, less adversarial, and cheaper method for common disputes. 

A new Property Portal will also be rolled out, a digital and centralised landlord & property register for the Private Rental Sector. All landlords will need to register themselves and any properties they rent out privately on the portal, and keep information up to date. Tenants will be able to check the portal to see key information, such as landlord identity, compliance status, and potentially property standard / violation history. Not all data will necessarily be public, to balance privacy for the landlord and tenants. 

What Happens Now?

The bill has received Royal Assent, meaning that it has become an official law – however, the changes won’t have immediate enforcement. Most of its provisions still require ‘commencement regulations’ before they can take effect. 

So, the government needs to issue secondary legislation, setting out:

• which sections start when,
• how existing tenancies transition, and
• the practical systems (such as the Property Portal and Ombudsman) that need to be up and running first.

Until the government announces commencement dates, it’ll be business as usual for landlords and lettings agents. Some enforcement powers are expected to come into force within the next few months, according to the NRLA. The major reforms may still take several months to come into play. The NRLA has requested that landlords and agents are given at least 6 months notice to allow adjustments to be made. 

In the meantime, staying informed and reviewing internal processes will ensure a smooth transition when the new rules come into play. To keep updated, make sure to keep an eye on our Market Insights Blog. 

If you’re a landlord unsure about the new legislations and what they mean for your properties, or you feel that managing them yourself is becoming trickier, get in touch with our property management team to see how we can help you.