How The Renters Rights Bill Will Impact The UK Property Sector

With The Renters Rights Bill expected to become law before summer 2025, it’s important that you get to grips with the proposed changes to the private rented sector. 

The Renters’ Rights Bill was introduced by the Labour Government in September 2024, and is said to improve the current rental market for 11 million private renters and 2.3 million landlords in England. 

This bill marks a significant change to private renting in England, and it is currently making its way through the House of Commons, and as of October, it is in the committee stage. 

We’ve summarised some of the most important updates coming into play within the Renters Rights Bill to help you get attuned with the changes on the horizon, so carry on reading to find out more. 

What Is The Renters’ Rights Bill? 

The Renters’ Rights Bill is set to shake up the rental sector for both landlords and tenants, aiming to strengthen tenant protections whilst also ensuring landlords maintain control over their properties. 

The bill will introduce new changes on things such as rent increases, eviction procedures, tenant pet ownership as well as property standards. 

Section 21 Evictions 

One of the biggest changes which is being introduced in the Renters Rights Bill, is the end of Section 21 no-fault evictions for all tenancies, whether they are new or existing. 

For years, landlords have been able to evict tenants without giving any reason, given that they provide the proper notice period, however, under the new bill, that’s all set to change. 

Currently, Section 21 allows landlords in England to end Assured Shorthold Tenancies without a valid reason.

When Section 21 is abolished, this will mean landlords will have to rely on Section 8, which requires specific grounds for eviction.

Arrears Notice 

Another change that is set to be introduced when the Renter’s Rights Bill becomes law is arrears notices.

Notice to evict tenants for unpaid rent, will only be valid after 3 months of rental arrears, with the Ground 8 notice being a 4-week notice period. 

This means that the earliest landlords will be able to evict tenants who have rent arrears will be 4 months (3 months plus 4 weeks) plus any court delays. 

Property Portal 

The Renters Rights Bill will also be implementing a new ‘Property Portal’ which will ensure both landlords and tenants have easy access to information about their rights and responsibilities. 

Designed to give more visibility to tenants, the landlord portal will allow tenants to see who their landlord is and if their property meets the necessary legal requirements. 

Whilst there isn’t too much information on how the database will work, we imagine it will require landlords to register their properties and demonstrate compliance with safety regulations. 

This could mean uploading copies of Energy Performance Certificates and gas and electrical safety certificates, which could replace providing tenants with these documents in person at the beginning of the tenancy. 

End of Fixed-term & Shorthold Tenancies 

In another measure, the Renter’s Rights Bill will introduce an end to fixed-term and shorthold tenancies, and will see all assured tenancies become periodic ‘rolling monthly tenancies’. 

Once the legislation is passed and made law, residential tenants and students will be able to serve two months’ notice at any point to end their tenancy. 

This could mean that some landlords of student properties may find themselves without tenants half way through the academic year. 

Rent Instalments 

The Renters Rights Bill will ban rent instalments which are higher than one month’s rent, which could present one of the biggest changes to the UK student market.

Currently, rent instalments tend to align with student loan payments, but once the bill becomes law, students across England and Wales will have to manage their budget wisely. Unless they are changed to monthly instalments which is the case in Scotland. 

For international students who are unable to provide a UK based guarantor, landlords will also be prevented from collecting rent upfront. 

Tenant Rights To Challenge Rent Increases 

What other changes will the Renters Rights Bill introduce? The bill is set to limit rent increases to no more than one per year, and will require landlords to serve a section 13 notice, giving tenants at least two months notice. 

Whilst it may vary by region, many areas in England and Wales are likely to have a set limit on how much landlords can raise each year, which will help tenants avoid sudden or sharp increases which may force them to move unexpectedly. 

With the bill, tenants within the private rented sector will be able to challenge any rent increases which are above market, through the First-tier Tribunal (Property Chamber). 

Tenant Pet Ownership 

For pet owners you’ll be glad to know the bill will provide strengthened rights to request pets to live within a property, which landlords must consider, and cannot unreasonably refuse. 

If a landlord does refuse the tenant’s request to keep a pet, the tenant will be able to challenge this if no justifiable reason is given. 

Although, landlords will still have the right to request the tenant to take out pet insurance to cover any possible damages which may occur. 

Improve Housing Standards 

The Decent Homes Standard currently only exists within the social housing sector, but a big takeaway from the bill is that it will now be applicable to the private rented sector too. 

Whilst there hasn’t been too many details just yet, the new rules are said to give renters safer, better value homes, and ensure properties are free from hazards such as damp and mould. 

We hope the information provided in this article has given you an understanding of how the Renters Rights Bill may impact the UK property sector.

We understand there is a lot to unpack here, so if you have any questions or need help preparing for these changes, you can contact us on  hello@X1salesandlettings.com. 

Here at X1, we provide high quality homes across Liverpool, Manchester, Leeds and Kent. If you’re looking for an apartment, be sure to check out our properties. 

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