Landlords guide to the new Renters' Rights Bill
Legislation of the private rental sector continues to get tougher, and rightly so as tenants have the right to a safe, comfortable home. The introduction of the Renters’ Rights Bill (now likely to be early 2026) will see the biggest change to our industry in over 30 years.
How will the Bill affect landlords?
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Abolishment of Section 21 notices - landlords must instead use a Section 8 ground for possession – these are specific circumstances in which a landlord can regain possession. These will include provisions for being able to sell the property. Notices must be served correctly to be deemed valid. As in the current system, landlords will need to go to court if a tenant does not leave and provide evidence that the ground applies.
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No more fixed term tenancies - all tenancies, including any fixed term already in place, will become periodic and can no longer have fixed terms i.e. if the rent is due monthly then the tenancy is a rolling monthly periodic. Tenants will be able to end a tenancy by giving two months’ notice in writing. The end date of the tenancy will need to align with the end of a rent period.
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Rent increase limits - issuing a prescribed notice will be the only way to increase the rent and at least two months notice must be given to the tenant. Only one notice will be allowed per calendar year. If the tenant thinks it is above market rate, they will be able to challenge the notice free of charge at the First-tier Tribunal (FTT), which will have the power to reduce the rent if the rent is above the market value. Tenants will also have the ability to challenge the amount of rent as being above market rent within the first six months of signing the new tenancy agreement.
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Allowing pets - landlords can no longer “unreasonably” refuse permission for the tenant to keep a pet. However, landlords can ask for an additional deposit up to a maximum of three weeks rent as a specific “pet deposit”.
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Prohibit discrimination - landlords will also no longer be able to ban or restrict letting to tenants with children or tenants who claim benefits.
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Ban rental bidding wars - landlords and letting agents cannot accept an offer of rent above what was stated in the advertisment.
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A new landlord ombudsman scheme - all landlords must be a member of a new Private Rented Sector Landlord Ombudsman Service. The aim of this is to help resolve disputes between landlords and tenants impartially. This already applies to letting agents.
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A new Private Rented Sector (PRS) database - this is designed to help with transparency and landlord compliance and landlords will be legally obliged to register both themselves with and the properties they let.
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The Decent Homes Standard - all rental properties must meet minimum quality standards.
The new Renters’ Rights Bill sounds daunting enough but landlords already have plenty of legal obligations to meet such as annual gas safety checks, electrical installation safety certificates and ensuring properties have working smoke and carbon monoxide alarms. This, along with the various legal documents that must be served on a tenant before they even move in, is creating confusion among landlords as to whether they are fully compliant. If any document has not been served correctly and at the right time, the landlord could lose their right to evict a tenant, face a fine or even a banning order in the worst circumstances.
Backed by our 25+ years of letting and property management experience, we can ensure landlords that they are fully compliant from day one to ensure a smooth and stress-free service. If you have any compliance questions, please do not hesitate to contact one of our experienced team.