The landscape of private renting in England is on the cusp of significant change with the impending Renters’ Rights Bill. But what does this mean for you and your tenants? Emily Hill from Mortgage Advice Bureau explores what we know so far.
Previously known as the Renters’ Reform Bill, this landmark legislation aims to rebalance the relationship between landlords and tenants, promising greater security for renters while introducing new responsibilities and clarifications for landlords. Expected to become law in the summer of 2025, the Renters’ Rights Bill will have far-reaching implications for both parties.
Much-needed stability for tenants
Perhaps the most impactful change for tenants is the abolition of Section 21 “no-fault” evictions. Currently, landlords can evict tenants with two months’ notice after a fixed-term tenancy ends, or during a periodic tenancy, without needing to provide a specific reason. This has been a major source of insecurity for renters, often leading to reluctance in contesting inadequate living conditions for fear of eviction.
Under the new Renters’ Rights Bill, Section 21 will be scrapped entirely. Landlords will only be able to regain possession of their property by using the reformed Section 8 grounds for possession, which require specific and legally-defined reasons. This offers tenants much greater stability due to the removal of sudden, unexplained evictions, as well as empowering them with the confidence to report issues without fear of arbitrary eviction.
This includes fixed-term tenancies being abolished, converting all tenancies to periodic (rolling) from day one. Tenants will now be able to give two months’ notice to leave at any time, while landlords will generally need to provide four months’ notice when using valid grounds through Section 8.
Greater clarity for landlords
While the abolition of Section 21 marks a substantial shift in renters’ rights, the bill also introduces new and strengthened grounds for landlords to regain possession, aiming to create a fairer system for all.
To compensate for the loss of Section 21, existing Section 8 grounds are being strengthened and new mandatory grounds introduced. These include situations where you intend to sell the property, move into it yourself or have a close family member move in, or for repeated serious rent arrears.
All private landlords will be required to register on a new private rented sector database/portal and join a government-approved ombudsman scheme. This aims to increase transparency, provide information, and offer an impartial dispute resolution service for tenants, reducing the need for court action.
All rental properties will also be required to meet the Decent Homes Standard, currently applied to social housing. This mandates that properties are safe, well-maintained, and free from serious health hazards. You may need to invest in upgrades to comply, so make sure to do your research around this.
You’ll be limited to increasing rent once per year, and any increase must be communicated with at least two months’ notice. Tenants will have the right to challenge unreasonable rent increases through a tribunal, and rental bidding wars (where prospective tenants offer above the advertised rent) will also be outlawed.
Last but not least, you’ll be prevented from unreasonably refusing a tenant’s request to keep a pet once the Renters’ Rights Bill takes effect, although they can require the tenant to obtain pet damage insurance. Furthermore, blanket bans on renting to tenants in receipt of benefits or with children will become illegal, promoting fairer access to housing.
Navigating the transition
The Renters’ Rights Bill represents the most significant shake-up of the private rental sector in decades. For tenants, it promises a more secure and equitable renting experience, with greater protection against arbitrary evictions and improved housing standards. Meanwhile, for landlords, it demands a more professional and compliant approach to property management.
As we await the Renters’ Rights Bill becoming legislation, staying informed about the specifics of the bill, understanding the new grounds for possession, and preparing for compliance with the Decent Homes Standard will be crucial. While the full impact will only be seen once the bill is enacted and fully implemented, it is clear that the future of renting in England is set to be more balanced and transparent for everyone involved.
It’s important to remember that financing a buy-to-let property is a specialist area, and the Renters’ Rights Bill may well influence buy-to-let lending criteria as lenders adapt to the changing legal landscape.
For this reason, consulting a qualified mortgage adviser is highly recommended. They can provide tailored advice on the most suitable buy-to-let mortgage products, navigate the complexities of lending requirements, and help you understand the financial implications of your investment, especially in light of the new regulations.
While they cannot offer specific advice regarding the implications of the Renters’ Rights Bill itself, an adviser can support you in all aspects of your mortgage journey, whether you’re taking your first steps into the rental market, looking to expand your existing portfolio, or considering downsizing your current property investments.
