Summary:
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The Renters Rights Bill aims to make the private rental sector fairer for residents.
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The bill expands on the Renters Reform Bill that was introduced by the previous government.
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Some of the main differences between the previous and new bill include immediately banning Section 21 evictions, extending Awaab’s Law to the private rental sector, and stopping private landlords from accepting rent offers above the advertised rate.
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The Renters Rights Bill is being introduced to help fix the housing crisis and improve the private renting experience for residents.
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A spike in Section 21 evictions is expected before the Renters Rights Bill passes, more landlords could leave the private rental market, and further backlogs in the court system are anticipated.
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The Renters Rights Bill is expected to become law in the summer of 2025.
In recent decades, the experience of residents in the private rented housing sector has deteriorated.
Many people have had to put up with high rents, poor-quality housing, and fear of eviction.
Labour’s new Renters Rights Bill aims to change that. But can it succeed where the previous government failed and will it be effective if the UK court system isn’t fit for purpose?
This article explains what the Renters Rights Bill is, the changes it will introduce, and some of the challenges it faces.
What Is in the Renters Rights Bill?
The Renters Rights Bill aims to reform the private rental market and create a more balanced relationship between landlords and residents.
The new legislation aims to strengthen the rights and protections of residents by:
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Promoting fair treatment.
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Providing a clear understanding of landlord and tenant responsibilities.
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Ensuring private landlords keep their homes safe and well-maintained.
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Ensuring security and transparency regarding tenancies.
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Fostering greater accountability in landlords.
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Making rent more affordable.
The bill was introduced by the new Labour government as part of its housing sector reforms.
It essentially revives the earlier Renters Reform Bill that was introduced by the previous Conservative government. However, this bill didn’t pass before Parliament was dissolved ahead of the general election.
The Renters Rights Bill brings back all proposed legislation contained in the Renters Reform Bill. But it goes further, strengthening some policies and adding new requirements.
Let’s look at some of those differences in detail.
How does the Renters Rights Bill differ from the Renters Reform Bill?
Here’s a summary of the key differences between the Renters Rights Bill and the Renters Reform Bill.
We’ll explain each difference in greater detail later in the article.
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Section 21 will be abolished immediately: The Renters Reform Bill proposed waiting for the UK court system to be reformed before abolishing Section 21 “no-fault” evictions. The Renters Rights Bill will ban these kinds of evictions as soon as it comes into force.
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Awaab’s Law: This law sets timeframes for social housing providers to respond to repair and maintenance requests.
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The Decent Homes Standard: This sets minimum quality standards that social housing providers must achieve. The new bill extends this to the private rented sector.
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Rent increases at market rate: The previous bill stated that rent could be increased by informing the tenant with a Section 13 notice. The new bill has added to this by saying rents can only be increased at the market rate.
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Rental bidding wars banned: Landlords have to publish their rents and cannot accept offers above what they publish.
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Notice on periodic tenancies can be served at any time: The previous bill proposed making all tenancies rolling monthly agreements. Residents would be able to serve notice after 6 months. The new bill has removed this 6-month requirement.
It’s clear that private housing sector reform is seen as critical by both major political parties. The reason behind this is that the UK is facing an acute housing crisis, which in turn is giving private-sector landlords more power in the landlord-resident relationship. The next section explores this in more detail.
Why Is the Renters Rights Bill Being Introduced?
Most responsible landlords do a good job and their residents are satisfied. The latest UK Housing Survey found that 82% of private renters are satisfied with their accommodation.
But that leaves 18% who are not satisfied. That’s around 792,000 households, or 11 million people, that aren’t happy with their home, tenancy, or landlord. Many of those households are likely to be families. This is clearly an unacceptable situation.
But with UK home ownership becoming increasingly unaffordable, more and more people rent homes. In 2005, more than 70% of all households were owner-occupiers. Today, that figure stands at 53%.
This means that an increasing number of UK households face issues such as:
Lack of tenancy security
Under the current law, it’s easy for a landlord to evict residents even if they haven’t broken the terms of their tenancy. This loophole has been legal due to the Section 21 ‘no-fault’ eviction clause.
The media reported many stories of residents who were evicted shortly after having complained about their landlord or simply having requested repairs. These are known as retaliatory evictions. These have had a chilling effect on residents, who live in fear of being evicted simply for exercising their right to quality housing.
Lack of transparency regarding rent hikes
The shortage of housing in the UK means there is high demand for rented properties, especially in big cities.
This has led some landlords to increase rents to levels that their existing residents cannot afford. Some landlords have used Section 21 to evict tenants so they can quickly find a higher-paying one. In some cases, landlords have also encouraged rental bidding wars between house hunters, hiking up rents to even more unaffordable rates.
Poor quality accommodation
Some landlords don’t keep their homes in good condition. It’s common to hear reports of cold homes, damp and mould, and hazardous living conditions, simply because landlords haven’t taken repairs and maintenance requests seriously.
In some cases, they refused to make repairs at all. This is made worse by the previously mentioned chilling effect of Section 21’s no-fault, retaliatory evictions.
Barriers to renting a home
It’s common for certain people to be discriminated against by landlords and letting agents. People with children, or pets, or who are on benefits are often denied tenancy.
What New Rules Will the Renters Rights Bill Introduce?
As previously mentioned, much of the legislation in the Renters Rights Bill has been carried over from the Renters Reform Bill.
They include:
A ban on Section 21 evictions
The biggest change to come out of the new bill is that Section 21 no-fault evictions will be banned. The previous bill had proposed only introducing this for new tenancies. However, the Renters Rights Bill will extend the ban to existing tenancies as well.
This will enable residents to request repairs or complain about their landlord without fear of being evicted.
Make possession grounds fairer
Section 21 may have been banned, but landlords will still be able to repossess the property if they intend to sell it or want to live there themselves. They can also evict tenants in certain circumstances - for example, if they fall into rent arrears. This can be done by issuing tenants a Section 8 notice.
Here are some other changes being introduced:
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The threshold for rent arrears eviction is being extended from 2 to 3 months.
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The notice period for arrears evictions will increase from 2 weeks to 4.
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Landlords will be unable to evict tenants to sell or move into the property for the first 12 months of any tenancy.
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Landlords wishing to repossess their properties in this way will need to give 4 months’ notice.
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Repossession grounds will be introduced where accommodation is designed for specific purposes and the resident no longer needs it – for example, supported accommodation for formerly homeless people.
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Landlords will be unable to regain possession if they did not protect tenants’ deposits or did not register their property on the private rented sector database (more on this later).
A ban on assured shorthold tenancies
Another major change is a ban on fixed-term assured tenancies. All new tenancies can only be periodic monthly rolling contracts. Residents can end the tenancy at any time by giving their landlord two months' notice.
This makes it easier for residents to leave the property if they are unhappy with it or their circumstances change.
Currently, many renters want to move but find themselves trapped in their property because they signed a fixed-term tenancy agreement. A good example from 2019 involves a couple who had split up but were forced to continue living together due to their restrictive tenancy agreement.
A ban on excessive rent increases
Landlords will be able to increase rent once per year in line with the price of the property if it were to be newly let. They need to give residents at least two months’ notice of an increase.
Residents will be able to challenge unreasonable rent increases. If they believe their rent exceeds the market rate, then they can take their landlord to a tribunal, where a fair rent will be decided. The rent will never be more than what the landlord asked for.
Rental amounts decided by a tribunal can no longer be backdated and the tribunal can order a hardship deferment of up to 2 months.
Introduce a PRS Landlord Ombudsman
The Housing Ombudsman currently adjudicates and resolves complaints from social housing residents about their housing associations. A new ombudsman service will be launched to do the same for the private rented sector (PRS).
Create a database for the PRS
All landlords, properties, and tenancies will have to be registered on a new private rented sector database.
This will help:
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Landlords understand their legal requirements and prove compliance.
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Prospective tenants make more informed decisions when choosing a property or landlord.
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Local authorities understand which landlords they need to target with enforcement action.
Give residents the right to keep pets
Many landlords issue a blanket ‘no pets’ rule at their properties. This makes it very hard for people with pets to find a home.
Under the new rules, landlords will not be able to withhold consent for residents to get a pet unless they have a good reason - for example, the risk of potential injuries caused by pets to tenants or visitors to the property.
Residents will be able to challenge decisions they perceive as unfair. In exchange, landlords will have the right to request that residents buy pet insurance to cover any potential damage caused by their animals.
Apply the Decent Homes Standard to the PRS
As mentioned above, the Decent Homes Standard sets minimum standards in social housing. This will now be applied to the PRS as well, ensuring that all landlords and residents are clear on what quality accommodation looks like.
Apply Awaab’s Law to the PRS
Awaab’s Law was added to the Social Housing (Regulation) Act 2023 after 2-year-old Awaab Ishak had died due to damp and mould in his family’s social housing flat. His family complained about conditions in the property several times but they were not suitably dealt with.
The law sets minimum timeframes for landlords to address hazards at their properties. Failure to comply will enable their tenants to bring court action against them. Non-compliant landlords could face rent repayment orders.
The Renters Rights Bill proposes extending this law to the PRS sector.
Ban discrimination against people with children or those on benefits
Pet owners aren’t the only people who experience rental discrimination. People on benefits or those with children are often barred from renting some properties.
The new bill will outlaw this. However, landlords will still be able to deny a tenancy based on whether the potential resident can afford the rent.
Ban landlords from accepting rent offers above the advertised rate
Some unscrupulous landlords force prospective tenants to bid on rent for their properties. This practice inflates rates and makes it harder for financially vulnerable people to secure a home.
Under the new rules, landlords and letting agents will have to publish an asking price for property rent. It will be illegal for them to accept bids above this price.
Strengthen local authority enforcement powers
Local authorities will be able to collect penalties from non-compliant landlords and use them to fund future enforcement operations.
Initial or minor offences could result in a £7,000 fine, while repeat or more serious transgressions could result in a fine of up to £40,000.
Councils will also be given the right to enter the premises and request information so they can enforce these rules.
Downsides of the Renters Rights Bill
We largely welcome the Renters Rights Bill. Too many families in the UK are putting up with poor quality housing and high rents, or live in fear of eviction.
However, the bill could also serve to deepen the UK’s housing crisis.
One of the reasons the previous government did not get the Renters Reform Bill implemented was that the UK court system also needs to be reformed. Currently, UK courts face significant delays and backlogs.
The Renters Rights Bill is likely to result in a storm of litigation from residents, which could cause further delays. Landlords and residents could find themselves stuck in protracted legal battles.
The previous government delayed the ban on Section 21 evictions while court reforms were pending. However, the new government has said it will not delay the ban on no-fault evictions.
This could have two impacts:
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A spike in evictions as landlords try to get rid of “difficult” tenants before the new bill is implemented. The number of Section 21 evictions hit a six-year high earlier this month.
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A drop in privately rented properties as landlords who don’t want to comply with the new rules aim to sell their properties. 25% of landlords say that they plan to sell a property in the next 12 months due to increased costs and regulations.
With more people seeking new homes and fewer properties available, it’s possible that rent costs could actually increase should the Renters Rights Bill be signed into law.
What Stage Is the Renters Rights Bill at?
The Renters Rights Bill is currently on its second reading in the House of Commons. This is relatively early in its passage. However, the government is likely to make it a high priority and it is likely to gain broad support amongst Labour MPs.
Therefore, it is thought that the bill could gain Royal assent and come into force as early as summer 2025.
Stay Compliant with EVO
One of the key elements of the Renters Rights Bill is ensuring that landlords provide tenants with high-quality housing and respond promptly to their repair requests.
But doing this can be challenging. Communicating with residents, finding an available tradesperson, and providing them with accurate information can be very time consuming.
Miscommunication means that jobs can get delayed and if the root cause of the problem isn’t addressed, you could end up paying for someone having to go back and attempt a repair several times.
Tradespeople waste their time, you waste money, and your residents have to put up with poor quality accommodation.
That’s where EVO comes in.
We allow landlords to outsource all their repair and maintenance requests by using an end-to-end digital platform.
Our platform combines automation, data, and high-quality workmanship to ensure that efficient repairs and maintenance take place.
Here’s how it works:
✅ Residents are given a mobile phone app to request repairs. They can send videos and images to give tradespeople a clear idea of their requirements.
✅ The next available suitably qualified tradesperson is automatically assigned - no more phoning around for quotes.
✅ Residents can choose a slot that suits their schedule, or they can opt to leave a key at a secure drop-off.
✅ Tradespeople are given all the information about the property they need to do the job quickly and efficiently.
✅ All completed work is signed off by our team and is given a 12-month EVO guarantee.
EVO can help you provide better quality housing and comply with new legislation. But don’t take our word for it. Check out our case study featuring housing association B&D Reside and discover how we helped reduce their average repair resolution time from over 28 days to just 6 days.
Contact us today to find out how we can do the same for you.
