The Renters’ Rights Bill has recently progressed from the House of Commons to the House of Lords, moving closer to becoming law. As the Bill takes its final shape, landlords in the private rental sector must prepare for significant regulatory changes. However, many details remain unclear, such as how the new “Landlord Database” will operate and what associated costs will be involved. It is expected that the system will take inspiration from Rent Smart Wales, but definitive guidance will be set by the Secretary of State once the Act is enacted. This is a crucial development that landlords should monitor closely.

This post does not provide a comprehensive analysis of all the Bill’s provisions but highlights key points of interest for private landlords.

Expected Timeline

Industry projections suggest that the Renters’ Rights Bill will become the Renters’ Rights Act 2025 (the Act) by Spring 2025. However, major changes to the housing sector will not take effect immediately. The Secretary of State will have the authority to determine when the most significant reforms—including the end of assured shorthold tenancies—come into force.

Key Changes Under the Act

Once enacted, the Act will introduce the following immediate changes:

• End of Fixed-Term Tenancies: All tenancies will become rolling periodic tenancies, with a maximum rolling period of one month or the frequency of the current tenancy (e.g., weekly).
• Restrictions on Possession Claims: Landlords cannot seek possession within the first 12 months of a new tenancy. However, tenants may end the tenancy at any time with two months’ notice.
• Abolition of Section 21 ‘No-Fault’ Evictions: Landlords will only be able to regain possession through Section 8 notices, but additional compliance requirements will be introduced.
• Section 8 Notice Requirements: Before serving a Section 8 notice, landlords must have protected any tenancy deposit within 30 days of receipt and provided prescribed tenancy information.
• No Requirement for EPC, How to Rent Guides, or Gas Safety Records for Section 8 Notices: These documents are still legally required but will be enforced through the Landlord Database rather than possession proceedings.
• Rent in Advance Cap: Rent in advance payments will be limited to one month.
• Pet Requests: Tenants have the right to request pets, and landlords cannot unreasonably refuse.
• Written Tenancy Agreements: If a tenancy agreement is not in writing, landlords must provide written terms within one month of a date specified by the Secretary of State.

The End of Section 21 Evictions

Section 21 has historically been the preferred eviction method for private landlords, as it provided certainty in possession proceedings. However, it also allowed tenants in arrears to seek assistance from local authorities without being deemed “intentionally homeless.”

With its abolition, landlords will be limited to Section 8 notices, making possession proceedings more adversarial. Tenants facing financial difficulties may be incentivized to challenge eviction claims to strengthen their cases for rehousing, leading to an increase in legal disputes. This shift is likely to burden the court system significantly, resulting in longer and more costly possession proceedings.

Transitional Arrangements

The transition will be swift. When the Act comes into force:

• Existing ASTs will automatically convert to periodic tenancies, with few exceptions.
• Section 21 notices served before the Act’s commencement will remain valid for six months or until proceedings conclude.
• Section 8 notices served before the Act’s commencement will also remain valid, but landlords must initiate proceedings within three months.

Changes to Section 8 Grounds for Possession

To compensate for the removal of Section 21, the Act introduces modifications and new grounds for possession under Section 8, including:

• Ground 1 (Landlord’s Own Use): Expanded to allow possession for a landlord or their family members to move in. This ground cannot be used within the first 12 months of a tenancy and requires four months’ notice. The landlord cannot re-let the property within 12 months unless owned by a limited company.
• Ground 1A (Intention to Sell): Allows possession if the landlord intends to sell. Tenancies must be at least 12 months old, and landlords must provide sufficient evidence.
• Ground 6 (Redevelopment): Now applies to landlords who purchased a property with sitting tenants.
• Ground 6B (Enforcement Action): Landlords facing enforcement action for licensing failures or overcrowding may gain possession, but courts may order tenant compensation.

Mandatory grounds require courts to grant possession if proven, whereas discretionary grounds allow courts to weigh circumstances before making a decision.

Increased Focus on Anti-Social Behaviour Grounds

• Ground 14 (Anti-Social Behaviour): Now allows for immediate notice and possession claims.
• Ground 7A (Convictions for Anti-Social Behaviour): Also now permits immediate notice, though it applies only in cases of tenant convictions.

Section 8 Notice Form Changes

The Secretary of State will have the power to update the prescribed form of Section 8 notices at any time, without requiring subordinate legislation. This flexibility could create challenges if the form changes frequently, leading to confusion and potential compliance risks for landlords.

New Civil Offences and Rent Repayment Orders

The Act introduces new civil offences under Section 40 of the Housing and Planning Act 2016, including:

• Unlawful Re-Letting: Re-letting within a restricted period (e.g., after serving a Ground 1 or 1A notice) will be an offence.
• “Knowingly or Recklessly Misusing a Possession Ground”: This aims to prevent landlords from issuing notices without genuine intent, increasing legal risks. Rent Repayment Orders (RROs) for such offences may require landlords to refund up to two years’ rent, doubling the previous 12-month cap.

Further Updates to Expect

Future posts will cover:

• Rent increase procedures under the new Act
• More details on the Landlord Database
• Changes to Rent Repayment Orders
• The proposed private sector landlord ombudsman
• Issues surrounding discrimination
• The Decent Homes Standard and Awaab’s Law

Conclusion

The Renters’ Rights Act will mark a fundamental shift in the private rental sector, with significant implications for landlords. The abolition of Section 21, new Section 8 grounds, and increased compliance obligations will require careful planning. As further details emerge, landlords must stay informed and prepared for the upcoming changes to avoid financial and legal pitfalls.