The Renters’ Rights Bill is bringing some big changes to the rental market. While some landlords might feel it’s taking away control, it’s more about adjusting how we manage properties – making sure things are fair and clear for everyone involved.
How will you be affected?
Before you get overwhelmed, take a moment to assess your portfolio. How likely is it that you’ll actually be significantly affected by these changes?
For many landlords – especially those who manage their properties responsibly – the core principles of the Bill may not have a major impact.
Yes, it’s a lot – but you’re not alone!
Let’s be honest. What used to be a fairly straightforward industry is now packed with legislation. It’s easy to feel like it’s becoming unmanageable. But that just means it’s time to level up your knowledge or make sure you’ve got the right support behind you.
Done right, you’ve got nothing to fear.
Understanding the changes in this Bill might help you view it not as a loss of control, but as a shift towards clearer rules and a more consistent playing field – something that can actually benefit landlords who already run things properly.
What exactly is changing?
Let’s break down the key updates landlords need to be aware of.
Section 21 is being abolished
One of the biggest changes is the removal of Section 21. This previously allowed landlords to evict tenants without giving a reason.
Now, landlords must use Section 8 grounds, which have been expanded to include reasons like persistent rent arrears or needing to sell the property. If your reasons are genuine, you can still serve notice – but you’ll need to follow a more transparent process.
Rent increases: limited to once a year
Landlords can still raise rent, but only once every 12 months and with at least two months’ notice. Any increase must be fair and in line with local market conditions.
If you’ve been setting realistic rents already, this change shouldn’t really affect you.
Tenancies become periodic
Tenancies will automatically become rolling month-to-month agreements. Fixed-term contracts will no longer apply.
Tenants can end the tenancy with two months’ notice. If landlords want to end it, they’ll need to use updated Section 8 grounds.
While this gives tenants more flexibility, it also means landlords will need to plan for the long term by considering factors like your property’s desirability – though you can’t change location, small improvements like updating fixtures or enhancing curb appeal can help reduce turnover and minimise void periods.
New restrictions on rent in advance
You can no longer ask for rent before a tenancy agreement has been signed and executed. If tenants offer to pay rent in advance, that’s fine – but it has to be their decision. It can’t be suggested, required, or incentivised.
Also, tenants who currently pay quarterly, bi-annually or annually will need to change to monthly payments once that prepaid period ends.
This change may mean that tenants who don’t have a satisfactory UK based guarantor could face more challenges in securing a rental property, as landlords will still need to ensure the tenant’s ability to pay rent reliably. It may encourage tenants to have stronger references or financial backing, which supports landlords by reducing the risk of rent arrears.
Banning rental bidding wars
Landlords and agents will no longer be allowed to encourage offers over the advertised rent.
This stops bidding wars and creates a more transparent rental process. The advertised rent must be the maximum amount charged – full stop.
By ensuring that advertised rents are the maximum charged, this change helps create a more transparent and predictable market. It allows landlords to set fair rents that reflect the true value of their properties, without the pressure to under or over pricing. In the long run, this can lead to better tenant retention and fewer disputes, as both sides know exactly where they stand from the outset.
A new PRS database
Landlords will be legally required to register their rental properties on a new Private Rented Sector (PRS) Database.
This digital system will list key property details. Local councils and tenants can access the information, making the market more transparent and easier to monitor.
If you don’t register – or submit false information – penalties will apply.
By standardising property details and ensuring compliance with housing standards, it makes it easier for landlords to meet legal requirements and for tenants to find properties that suit their needs.
Introduction of the Decent Homes Standard (Including Awaab’s Law)
The Decent Homes Standard will now apply to the private rental sector. Your properties must be free from serious hazards and kept in good repair.
A key part of this is Awaab’s Law, which will require landlords to fix serious health issues like damp and mould within strict timeframes.
If you’re already on top of maintenance, this won’t be a huge shift – but it will raise the bar for everyone.
Mandatory Landlord Ombudsman
All landlords will need to join a new ombudsman scheme.
This gives tenants access to a free, independent dispute resolution service. For landlords, it offers a faster, cheaper alternative to the court system when problems arise.
Ban on blanket discrimination
It will be illegal to have blanket bans on tenants who receive benefits or have children.
Landlords must consider each applicant individually. That doesn’t mean you can’t do affordability checks – just that everyone deserves a fair shot.
Tenants can request pets
Tenants will have the right to request permission to keep a pet. You can’t refuse without a good reason, but you can require pet insurance to cover potential damage.
This gives tenants more flexibility while helping landlords protect their properties.
Stronger enforcement and local authority powers
Local authorities will have new powers to enforce compliance – including higher fines for landlords who break the rules.
If you stay compliant, nothing changes. However, landlords who aren’t meeting the standards may face more serious consequences under the new rules.
Strengthening Rent Repayment Orders (RROs)
Tenants can now reclaim up to 24 months’ rent in more scenarios. For example:
If a landlord evicts a tenant using a false claim (like saying they’re selling the property), then re-lists it for rent within 12 months – the tenant can apply for a Rent Repayment Order.
RROs will also apply to:
- Misuse of possession grounds
- Letting without legal registration
- Continued non-compliance with PRS database rules
- Providing false information to the PRS database
These changes make it more important than ever to follow correct procedures.
What this means going forward
These changes might seem like a lot, but for landlords already managing properties properly, many of these rules just formalise what you’re already doing. The market is evolving, but as long as you’re transparent, fair, and stay on top of things, there’s no reason you can’t keep succeeding.
Final thoughts
Take some time to understand the new rules. Get your systems in place now so you’re not playing catch-up later.
If you need a hand, we’re here to help. Call us any time – we’ve got the know-how to keep your portfolio on track.
We’re a back office for property entrepreneurs like you and everything we do is aimed at creating you more time and headspace, and maximising your portfolio too. So if you’d like to change the way you do property, let’s talk! Call us on 020 3432 3888.
