Renters Right Bill Update
The Renters Right Bill (RRB) is steadily moving its way through the parliament and is currently (2nd April 2025) in the House of Lords committee stage.
To keep both our existing and new clients up to date we detail the main points of the proposed bill together with some additional updates that have been added to the legislation or become apparent to us as the proposals are debated by various stakeholders.
MAIN PROVISIONS
Tenancy length – All tenancies will effectively be periodic (no fixed term) but will allow tenants a minimum term of 12 months, however a tenant is also granted the right to leave after 2 months.
Section 21 evictions to be abolished – Landlords can only serve notice on a tenant if they are either selling the property, moving in themselves or the tenant commits a breach of the tenancy, for example rent arrears.
Possession – If you do serve notice on a tenant because you wish to sell, a notice period of 4 months must be issued. You will also be unable to rent the apartment again for another 12 months from the end of the notice period.
Rent Increases – will only be allowed once per year by serving a Section 13 notice and tenants will have the right to object by referring the matter to a First Tier Tribunal within a specified timeframe.
Private Rented Sector Landlord Ombudsman – will be set up to handle disputes between landlords and tenants. ·
Private Rented Sector Database – will be set up which landlords will have to register with. ·Pets – tenants will have strengthened rights to request a pet in the property, which the landlord must consider (unless the headlease precludes pets).
Decent Homes Standard – to be applied to the private rented sector to give renters safer, better value homes.
‘Awaab’s Law’ – to be applied to the sector, setting expectations for the timeframes within which PRS landlords must take action to make homes safe from damp and mould.
Discrimination – it will be illegal for landlords and agents to discriminate against prospective tenants in receipt of benefits or with children.
Rental Bidding – End the practice of rental bidding by prohibiting landlords and agents from asking for or accepting offers above the advertised rent.
Local authority enforcement – Strengthen local authority enforcement by expanding civil penalties.
UPDATES
Date of Implementation – The bill is due to be heard by the Lord’s select committee on the 22nd and 24th April 2025 with the potential for further scrutiny/sessions. Most commentators now believe that the law will achieve Royal Ascent in July before the summer recess with an expected implementation date between October and December 2025
Rent in Advance – One of the most surprising and disappointing amendments added to the proposed bill isthe banning of rent in advance. This prevents agents asking for or accepting rent in advance from any tenants. As many potential renters rely on this (overseas students, self-employed, tenants who have lower earnings etc) the amendment will inhibit their ability to rent.
Sanctions Checks – From the 14th May 2025 all letting agents will have to comply with a new law bieng brought in forcing them to carry out additional checks on ALL tenants under the Sanctions and Anti Money Laundering Act 2018.
CITY RESIDENTIAL RESPONSE
New Agreements – We are preparing new agreements where Assured Tenancies (AT) will replace Assure Shorthold Tenancies (AST) ensuring compliance with the new law. These will be utilised as soon as the law is implemented and replace existing tenancies.
Sanctions Checks – We will deal with the new laws by incorporating additional checks into ourprocesses ensuring compliance with the legislation.
Rent in Advance – The amendment to the bill will force all agents to ensure that the AT is signed and executed before the first month’s rent is collected. We are ensuring our systems and process are continually robust to ensure compliance and also protect the landlord.
Renewals – We continue to execute tenancy renewals as these are requested by both tenants and landlords alike, although they (like all existing tenancies) will become “periodic/rolling” tenancies once the new laws are implemented.
Goodlord – We have invested in and incorporated Goodlord the UK’s leading referencing and compliance portal into our existing systems to enable is to comply with the new legislation. This also provides both landlords and tenants with a documented timeline of their letting journey.
Selling – If you are looking to sell your property it is essential that you understand the new legislation and how it will/can affect your decisions in relation to any existing tenancies, timeline for selling and consequences should the property not sell. Please contact us for a chat to discuss.
Please note that the above commentary is not intended to be advice and nor should it be construed as such and we actively encourage you to carry out your own research and due diligence on the RRB so you fully understand the requirements of the new legislation and how it will impact you as a landlord.
