Renters’ Rights Bill Update February 2025

We, like you, have been watching the developments of this as it passes through the House of Lords. On Tuesday 4th February the Bill passed through its second reading. There were limited amendments tabled by the Peers in the House of Lords, which means the Bill will likely complete the Lords stage fairly quickly. 

The committee stage will follow the second reading in around two weeks, "where detailed line by line examination and discussion of amendments takes place".

With the Bill making such rapid progress, it is likely that it will get Royal Assent in April 2025 and parts of the Bill will become law immediately. Other parts of the Bill, such as the Decent Homes Standard, are expected to be rolled out at a later stage, possibly in 2026.

So, we wanted to update you with what we know so far:

• Abolish fixed-term Assured Shorthold Tenancies (ASTs) - as a result of this, all tenancies current and newly agreed will become periodic.
• Limit rent increases - the shift to periodic tenancies means Section 13 notices will be the only way for landlords to raise the rent; these can only be served once every 12 months.
• Abolish Section 21 notices - landlords will no longer be able to serve “no-fault” notices to regain possession of their properties.
• Expanded possession grounds on a Section 8 notice  - the Government is adding and updating both mandatory and discretionary grounds due to the abolition of a Section 21 notice.
• Ban rental bidding wars - landlords and agents can’t accept offers above the advertised price.
• Introduce a landlord ombudsman - this will help resolve disputes between landlords and tenants impartially.
• Create a private rented sector database - designed to compile information about landlords and properties and provide visibility on compliance.
• Apply the Decent Homes Standard - all rental properties must meet minimum quality standards.
• Prohibit discrimination - landlords can’t refuse tenants on benefits or with children under certain conditions.
• Pets allowed within the tenancy agreement – landlords will be unlikely to refuse pets without a valid reason such as ‘the head lease prohibits pets’.
• EPC – The minimum of a ‘C’ rating requirement has been pushed back to 2030, there are currently approximately 2.6 million rented properties in the U.K below a ‘C’ rating.
• Increased demand for rental property will occur – There are approximately 40,000 new rental properties a year entering the market with approximately 200,000 tenants looking to move.

It’s never been more important for landlords to be supported by a knowledgeable, experienced and professional lettings agent who stays up to date with the latest legislation.  

We understand this might be a worrying time for landlords.  We are here to answer any questions you may have.  Please feel free to contact us for advice and guidance, we’re on hand to help.

Photo by Zaid Ahmad on Unsplash