Update to the Renter’s (Reform) Bill – Renters Right Bill

The Renters’ Rights Bill is the government’s plan to reform private renting in England, and it is currently going through Parliament. Introduced in September 2024 to replace the earlier Renters (Reform) Bill, it would abolish Section 21 “no-fault” evictions and end fixed-term assured shorthold tenancies, so that all tenancies become rolling periodic tenancies.

Landlords would only be able to regain possession on a ground set out in law, such as rent arrears, selling the property or moving in themselves or a family member, and could only raise the rent once a year using a Section 13 notice. The Bill would also create a landlord ombudsman and a private rented sector database, and give councils the power to fine landlords up to £7,000 for a first breach and up to £40,000 for serious or repeated breaches. It is expected to become law later in 2025.

Below, we explain why the Bill is being introduced, what it would change and what it could mean for landlords.

Why is it being introduced?

Due to the significant increase in the private rented sector over the last 30 years, the government has sought to update and expand on legislation that was originally put in place when the sector was much smaller. The government’s aim is to “bring in a better deal for renters” and ensure private rented homes meet the basic standards.

What is the Renters Right Bill?

It delivers reforms to the private rented sector, and its primary goal is to give tenants more security to stay in their homes and more freedom to leave inadequate properties.

The Bill is intended to:

• abolish Section 21 evictions – landlords will no longer be able to serve “no-fault” notices
• abolish fixed-term Assured Shorthold Tenancies (ASTs) – tenancies will become periodic (i.e. rolling on a month-to-month basis)
• limit rent increases – Section 13 notices will be the only way for a landlord to raise the rent, and this can only be served once a year. A tenant will have the right to challenge the increase through a tribunal
• implement a landlord ombudsman – to help resolve disputes between landlords and tenants
• prohibit discrimination – factors such as having children or being on benefits will no longer be a reason for refusal. Tenants also have the right to request a pet
• ban rental bidding wars – offers cannot be accepted above the advertised price
• create a private rented sector database – this will provide visibility on compliance and information on landlords and properties
• expand Section 8 possession grounds – both mandatory and discretionary grounds will be updated due to the abolition of Section 21 evictions
• apply the decent home standard –all rental properties must meet the minimum quality standards.

What does the Renters Right Bill mean for landlords?

One of the most significant changes is that landlords will no longer be able to evict tenants without a legally valid reason.

It is anticipated that ‘valid reasons’ will still include the following:

• rent arrears
• landlord or family members moving into the property
• listing the property for sale
• tenant misconduct.

It is expected that all landlords will need to register to be part of a new ‘landlord redress scheme’. Their information will be logged on a central database, which will be widely accessible.

Any landlord that does not comply with the new legal standard can expect to face a hefty fine. There is also a low threshold for tolerance. The fine can be up to £5,000 by the local council, and if the landlord repeatedly breaches requirements or commits a serious offence, they may be fined up to £30,000 or face criminal prosecution and a banning order.

How can Ashtons help?

We act for a variety of landlord clients on all manner of issues concerning the private rented sector. We offer preventative advice and assistance to ensure that you are fully compliant with the relevant regulations. We can also prepare Assured Shorthold Tenancy Agreements for you to use.

If a problem arises, then we can help you resolve that, whether that be by recovering possession of your property or otherwise resolving issues with your tenants.

Contact our property disputes solicitors today

If you have any questions regarding the Renters Right Bill, or you are a landlord who needs assistance with your tenants, please get in touch with our specialist Property Litigation team by using our online enquiry form or calling 0330 404 0738.