Understanding the Renters’ Rights Bill: A New Chapter for England’s Rental Sector

The upcoming Renters’ Rights Bill, expected to become law in summer 2025, marks a pivotal moment for England’s private rental sector. Designed to create a more balanced and transparent system, the legislation introduces significant reforms that will impact both landlords and tenants, enhancing protections while raising standards across the board.

A key component of the bill is the abolition of Section 21 “no-fault” evictions. This change will provide tenants with greater security, allowing them to report maintenance issues and poor conditions without the fear of sudden eviction. All tenancies will become periodic from the outset, with tenants able to give two months’ notice at any time, while landlords must provide four months’ notice under valid, legally defined grounds.

To support landlords, the bill strengthens and expands Section 8 grounds for possession. This includes new mandatory grounds, such as a landlord’s intention to sell the property or move in themselves, as well as provisions for dealing with persistent rent arrears. These changes aim to preserve landlords’ rights while ensuring fair treatment for tenants.

In addition to changes in possession rules, all rental properties will be required to meet the Decent Homes Standard currently applied to social housing. This measure ensures that private rental properties are safe, well-maintained, and free from serious health hazards. Landlords may need to make property improvements to comply with the updated standard.

The legislation also introduces stricter regulations around rent increases and tenant rights. Rent can only be increased once per year, with at least two months’ notice, and tenants will have the right to challenge increases through a tribunal. Furthermore, the bill will prohibit discriminatory practices, such as blanket bans on tenants receiving benefits or those with children, and will limit a landlord’s ability to unreasonably refuse pets, provided tenants obtain pet damage insurance.

As these reforms approach, it is essential for landlords, property managers, and investors to familiarise themselves with the new requirements and prepare accordingly. Consulting with legal professionals and mortgage advisers will be key to ensuring compliance and maintaining the financial health of property investments in this new regulatory environment.