The Renters' Rights Bill (Bill) is almost in an agreed form, having reached the stage where final amendments are being considered in the House of Commons.

Once approved, it will receive Royal Assent and become the Renters Rights Act.

Following this, many of the Act’s provisions will require further consultation and secondary legislation before taking effect, although the government is keen to introduce the reforms as quickly as possible. 

Key changes

The key changes, based on the current legislation, are:

• All new tenancies will be periodic and known as Assured Tenancies (AT). All existing Assured Shorthold Tenancies (ASTs) will automatically convert to ATs with indefinite length of terms. Purpose-built student accommodation, one-bedroom and two-bedroom properties let to students will be excluded.
• Tenants will be able to terminate an AT on giving two months’ notice at any time, to expire at the end of a rent period. Rent periods will be for a maximum of one month so landlords will no longer be able to agree to take up front payments of any greater sums in advance.
• Landlords looking to increase the rent will first need to serve a written notice on their tenants. Tenants will then be able to challenge the increase at the First Tier Tribunal (FTT). Importantly, the FTT may decide to decrease as well as increase the rent and any increased rent will only become payable from the date of the FTT decision. Concerns have been raised that this is likely to lead to tenants challenging any increase as a matter of course. Existing rent review clauses will be void.
• Landlords will only be able to terminate a tenancy where they establish one of a number of possible grounds. The existing section 21 “no-fault” evictions will be abolished. The proposed grounds include where a tenant has breached the terms of the AT, where a landlord wants to sell the property, or where the landlord and/or specified family members want to live there.  
• Tenants will have stronger rights to keep pets in properties. They will need to obtain the landlord’s consent which cannot be unreasonably refused, although it will be acceptable for a landlord to refuse where the lease of a property prohibits keeping pets. Where consent is granted, landlords will be able to require a “pet deposit” of up to three weeks’ rent.
• All adverts and listings for lettings will have to specify the landlord’s “proposed rent” and landlords will be prohibited from accepting anything higher, even where tenants voluntarily offer to pay more. Bidding wars will not be allowed.
• It will become illegal for landlords and agents to discriminate against prospective tenants in receipt of benefits or with children.
• A new Private Rented Sector (PRS) Landlord Ombudsman will be established, to resolve tenants’ complaints about their landlord.
• A new PRS Database will be created. Landlords will be legally obliged to register both themselves and their properties and pay the associated fees. There will be civil penalties if they market or let out a property without first registering and providing the required information.
• The Decent Homes Standard will apply to the PRS. New regulations will set out the details of what this standard will entail.
• New measures will be introduced to strengthen local authority enforcement powers.

The Bill represents one of the most significant reforms of private renting in recent years. It aims to strengthen tenant protections and rebalance the landlord–tenant relationship, marking a decisive shift towards greater security and transparency for tenants, while introducing new compliance obligations and limitations for landlords. As such, landlords and tenants alike should begin preparing for these changes.

This briefing note sets out a summary of the proposed law at the time of writing and is for information purposes only. If you would like to discuss anything raised in this briefing, please contact Nicky Clemence or your usual Burness Paull contact. 

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