The rental sector has recently come under heightened scrutiny as the government, landlords, and tenants address the need for fairer housing practices.
A key development in this area is the introduction of the Renters’ Rights Bill, which is poised to make the most significant changes to the private rental market in over three decades.
While this bill will offer enhanced protections for tenants, it will also make it notably more difficult for landlords to regain possession of their property, largely due to the removal of ‘no-fault evictions.’
The Renters’ Rights Bill builds upon the Renters Reform Bill introduced by the Conservative Government in 2023, with the Labour government committing to implement these reforms.
The Bill had its first reading in the House of Commons on 11 September 2024 and passed its second reading on 9 October 2024.
The Bill aims to transform private renting, notably by ending Section 21 ‘no-fault’ evictions and providing renters with greater security. The government anticipates that the Bill will become law by the late 2025, with the current trajectory on track for this outcome.
Jennifer Hartley, Associate in Myerson Solicitor’s Property Litigation team offers a breakdown of the key aspects of the Renters’ Rights Bill.
What Does the Renters’ Rights Bill Include?
The Renters’ Rights Bill is set to:
- Abolish fixed term assured and assured shorthold tenancies, replacing them with periodic tenancies for all renters moving forward;
- Eliminate ‘no-fault’ evictions under Section 21 of the Housing Act, requiring landlords to provide a legitimate reason for eviction, such as rent arrears or a breach of tenancy terms;
- Revise grounds for possession to enhance tenant security, including a 12-month protection period at the beginning of the tenancy, during which tenants cannot be evicted if the landlord intends to move in or sell the property;
- Extend notice periods for many mandatory grounds for possession;
- Increase protections for tenants in arrears, raising the mandatory threshold for serving notice on tenants;
- Introduce new grounds for possession, including when the landlord or their family member requires the property as their primary residence;
- Allow tenants to end their tenancy with a two-month notice period;
- Prevent unreasonable refusal of tenant requests for pets, though landlords may require pet insurance to cover potential property damage caused by pets;
- Establish a ‘Decent Homes Standard’, enabling landlords to face civil penalties or prosecution for failing to address serious hazards in their properties;
- Create a new ombudsman and a database designed to offer a cost-effective dispute resolution mechanism, assisting landlords in fulfilling their obligations while providing tenants with information.
What Is the Current Stage of the Bill?
The Bill recently completed its Second Reading in the House of Lords on 4 February 2025. It has now entered the Committee Stage, where the Bill will undergo a detailed examination, including the review of all clauses and schedules.
Amendments and concerns raised in the previous stage will be addressed, and the Committee will work to resolve these before proceeding to a vote.
Key Updates from the Bill’s Progression
Several important issues were raised during the Second Reading, which the Lords will now review in the Committee Stage. Some of the most notable concerns include:
- Potential Impact on the Court System: Many Lords have expressed concerns about the strain the Bill could place on the court system. The Government is working closely with the Ministry of Justice to assess the Bill’s potential effects on courts and tribunals, although this remains a significant concern. Ensuring that the justice system is adequately prepared for these changes is critical.
- Purpose-Built Student Accommodation (PBSA): The Bill introduces provisions that allow landlords of Houses in Multiple Occupation (HMOs) rented to full-time students to regain possession with four months’ notice, between 1 June and 30 September. There has been significant debate over whether the changes to student accommodation should apply to PBSA. Some Lords have proposed removing this from the regime, which is supported by the student accommodation sector.
- Pets in Rental Properties: The Bill seeks to end the dilemma faced by tenants who must choose between having a pet or a rented home. It includes a provision to ensure that tenants are not unfairly prevented from having pets, provided they maintain appropriate pet insurance. However, concerns have been raised regarding the availability of comprehensive pet insurance.
- Advance Rent: The Bill proposes banning rent payments in advance, except for the first month’s rent. While this is intended to protect tenants from being asked to pay large sums up front, there are concerns that this change could negatively impact certain groups, such as international students, overseas workers, or those with short-term or irregular employment.
What’s Next for the Bill?
The Committee Stage, during which proposed amendments will be reviewed, is expected to last for about a week, though there is no fixed timeline. Given the importance of these reforms, it is crucial that the Bill undergoes thorough scrutiny to ensure a balanced approach that protects tenants and supports landlords, creating a functional and sustainable private rental market.
Angela Rayner, Deputy Prime Minister, commented:
“Renters have been let down for too long and too many are stuck in disgraceful conditions, powerless to act because of the threat of a retaliatory eviction hanging over them.
“Most landlords act in a responsible way but a small number of unscrupulous ones are tarnishing the reputation of the whole sector by making the most of the housing crisis and forcing tenants into bidding wars.
“There can be no more dither and delay. We must overhaul renting and rebalance the relationship between tenant and landlord. This Bill will do just that, and tenants can be reassured this Government will protect them.”
Next Steps in the Legislative Process
- Committee Stage: A line-by-line examination of the Bill and proposed amendments.
- Report Stage: The House of Lords will review and consider any changes made during the Committee Stage.
- Third Reading: The final opportunity for debate, followed by a vote in the House of Commons.
- Consideration by the House of Lords: The Lords will review the Bill in its final form.
Although many of the reforms have been expected, some proposals are entirely new, and there remains uncertainty about how they will be implemented in practice. It is important to remember that the Renters’ Rights Bill may undergo further amendments before becoming law.
However, it is becoming increasingly clear that Section 21 ‘no-fault’ evictions are likely to be abolished.
Current Legislation and Options for Landlords
Under the current framework, landlords can regain possession of their property under Section 8 and Section 21 of the Housing Act 1988:
- Section 21: Allows landlords to end an assured shorthold tenancy for any reason by providing two months’ notice. If the tenant does not vacate, landlords may seek an order for possession through the County Court. However, Section 21 notices can be invalid if the landlord fails to meet specific requirements, such as protecting a deposit or providing the necessary certificates and guides.
- Section 8: Allows landlords to terminate a tenancy based on specific grounds, some of which are mandatory (e.g., rent arrears). If the grounds are met, possession must be granted. In discretionary cases, the court will evaluate the evidence before making a decision.
Considerations for Landlords
Landlords must carefully consider the potential impact of the reforms. The removal of Section 21 will severely limit their ability to evict tenants without cause, and they will need to rely on Section 8 grounds. This shift will reduce landlords’ control over their properties.
When Will the Renters’ Rights Bill Become Law?
The Renters’ Rights Bill is expected to become law in late 2025. Landlords contemplating reclaiming possession of their properties may want to act promptly. If you are a landlord considering serving notice to reclaim your property, it is advisable to seek legal guidance to ensure the process is completed correctly.
Any errors made in issuing a Section 21 notice, especially with the upcoming legislative changes, could delay your ability to regain possession of your property.
Navigating the Future of the Rental Market Under the Renters’ Rights Bill
The Renters’ Rights Bill represents a significant shift in the UK’s private rental market, aimed at enhancing tenant protections and ensuring fairer housing practices. While the removal of Section 21 ‘no-fault’ evictions marks a fundamental change, it also presents challenges for landlords, who will need to adjust to the new framework of regulated evictions and increased tenant security.
As the Bill continues to progress through the legislative process, it is essential for both tenants and landlords to stay informed about these changes, which are set to reshape the rental landscape by mid-2025.
Landlords should take proactive steps to understand their rights and responsibilities under the new law, particularly regarding possession proceedings and the upcoming shift in regulations.
In this video, we break down the current legal landscape for landlords in the private rented sector. Stay informed about the latest legislation, including the Labour Government’s commitment to abolishing “no fault” evictions under Section 21 of the Housing Act, and the potential impact of the Renters’ Rights Bill set to come into effect in Spring 2025. Discover:
- Key proposals in the Renters’ Rights Bill, including changes to tenancy agreements, rent arrears protections, and grounds for possession.
- Abolition of Section 21 notices and what this means for landlords.
- Practical steps landlords can take now to regain possession of their property under current laws.
- Common pitfalls for Section 21 and Section 8 notices—and how to avoid them.
As the rental landscape continues to evolve, understanding your rights and obligations as a landlord is crucial. From new protections for tenants to stricter compliance requirements for landlords, this video covers it all.
Jennifer Hartley Associate in Myerson Solicitor’s Property Litigation team.
Biography
Jennifer holds an MA in Crime, Law, and Society from the University of Manchester, which initially steered her career toward intelligence analysis with Greater Manchester Police and HM Revenues and Customs. She later earned her Graduate Diploma in Law, where she was awarded the Outstanding Student Award in Land Law, followed by a Distinction in the Legal Practice Course from BPP University.
Jennifer qualified as a solicitor in January 2020, joining Myerson shortly after completing her training with a leading Real Estate firm. As a solicitor specialising in Real Estate Litigation, Jennifer has extensive experience in both commercial and residential landlord-tenant disputes, lease renewals, forfeiture, dilapidations, rent arrears, and residential possession matters.
About Myerson Solicitors
Founded in 1982 in Altrincham, Cheshire, Myerson Solicitors is a Top 200 UK and ‘Top Tier’ Legal 500-rated law firm. It provides expert commercial and private legal services to businesses and individuals nationwide and beyond. With a dedicated team of over 150 employees, including 27 partners, Myerson consistently demonstrates its commitment to excellence in the legal field.
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