The Renters' Rights Bill: What You Need to Know

The Renter’s Rights Bill plans to:

• Abolish fixed-term assured tenancies and assured shorthold tenancies, and going forward, all tenancies will be periodic;
• Abolish the ‘no fault’ evictions under section 21 of the Housing Act, and going forward, landlords would need to provide a valid reason for their eviction, such as rent arrears or breach of the tenancy agreement;
• Revise the other grounds for possession to strengthen tenant security; for example, tenants will have a 12-month protected period at the start of their tenancy whereby they cannot be evicted if the landlord wishes to move in or sell the property;
• Extend the notice period requirements for many of the mandatory grounds for possession;
• Introduce new protections for tenants who are in arrears of rent by increasing the mandatory threshold for serving notice on a tenant;
• Introduce new grounds for possession, including whether the landlord, their spouse or family member requires the property as their primary home;
• Tenants will be able to end the tenancy by giving two months’ notice;
• Prohibit unreasonable denial of tenant requests to have pets at the property. However, landlords can require pet insurance to cover the cost of any damage to the property that is caused by the pet;
• Establish a “Decent Homes Standard”, meaning that landlords can be prosecuted or receive a civil penalty for failing to address serious hazards; and
• Introduce a new ombudsman and new database to provide a cost-effective way of resolving disputes which aims to aid landlords in understanding and fulfilling their obligations and provide information to tenants.

The Second Reading in the House of Lords recently took place on 4 February 2025.

The Bill is therefore now currently at the Committee Stage, which involves a detailed, line-by-line examination of all its parts, including clauses and schedules.

Members of the Lords raised amendments and specific areas of concern in the previous stage, and so it is now necessary for each clause to be agreed upon and for votes on any amendments to take place during this Committee Stage.

There have been some very important issues raised in the Second Reading, which the Lords will now have to consider in the Committee Stage. Some of the key issues they are faced with are:

Potential strain on the court

Many Lords have raised concerns about the strain on the court system that this Bill will bring.

The Government are said to be working closely with the Ministry of Justice to assess the impacts of the legislation on the courts and tribunals, and to ensure that the justice system is prepared for the implementation of the Bill more generally, however this is still a real concern.

It is therefore crucial that any risks associated with this Bill are managed effectively.  

Purpose built student accommodation (PBSA)

The Bill introduces a new provision which allows landlords of houses in multiple occupation rented to full-time students to regain possession, provided they give 4 months’ notice, effective only between June 1 and September 30.

There has been significant discussion about whether the proposed changes to student accommodation applies to PBSAs. The inclusion of this in the assured regime has therefore sparked debated and caused concern for the student accommodation sector. The Lords have therefore proposed that this be removed from the regime, which is very much supported by those in the sector.

Pets

It has been argued that that the experience of pets should not be denied to those who are unable to own their own home, and so the Bill will end the choice between having a pet or a rented home, and “ensure that everyone in England can benefit from the great companionship that having a pet brings”.

The Bill has tried to address the issue of damage to the property by asking tenants to pay for pet insurance, however there is still some concern that no comprehensive pet insurance exists at present.

Advance rent

The Bill proposes that any form of rent in advance other than the first month’s rent is prohibited, and this can only be payable after the tenancy agreement has been entered into.

Whilst the intention behind this is quite clearly to protect tenants from being forced to pay large sums of rent in advance, the Lords recognised that limiting this ability may have negative consequences for certain groups who struggle to prove their ability to sustain a tenancy, such as international students and overseas workers or even those employed on a short-term or variable basis.

What next?

The above list of issues is not exhaustive, and there are still plenty more of the Bill’s measures to be considered by the Lords. At Committee Stage, all suggested amendments must be considered, and there is no time limit as to how long an issue can be discussed for; therefore, it is unclear how long this stage will last for; however, it is typically for around a week. Going forward though, it is crucial that this Bill is properly scrutinised so that it can strike the right balance between protecting tenants as well as landlords, to ensure that the private rented sector runs viably and harmoniously.

1. Committee stage: A detailed examination of the Bill and potential amendments
2. Report stage: The House reviews and considers any adjustments or changes made during the committee stage.
3. Third stage: The final opportunity for debate, followed by a vote by a vote in the House of Commons
4. House of Lords Consideration

Whilst many of these reforms have been anticipated, some are entirely new, and there is uncertainty as to how they will work in practice.

It is important to note that the Renters Rights Bill may still undergo various amendments throughout the legislative process, leaving no certainty as to which proposals will become law.

However, one point seems increasingly clear, Section 21 and ‘no fault’ evictions are likely on their way out.

Under the current legislation, landlords can regain possession of their property under Section 8 and Section 21 of the Housing Act 1988.

• Section 21: This allows a landlord to terminate an assured shorthold tenancy for any reason by serving valid notice to the tenant requiring them to vacate within two months. If they fail to do so, landlords may apply to the County Court for an order for possession under either the accelerated or standard procedure. However, section 21 notices can be rendered invalid if:
  • The landlord has not protected a deposit under an authorised scheme or;
  • The tenancy began or after 1 October 2015, and the landlord fails to provide a gas certificate, energy performance certificate, or How to Rent guide to the tenant.

• Section 8: Alternatively, a landlord can terminate an assured shorthold tenancy by serving a notice under section 8. However, they must demonstrate to the court that one or more of the statutory grounds apply. Some of these grounds are mandatory, and if that ground is met then possession must be ordered. Other grounds are discretionary, and the court must decide if the landlord has provided enough evidence to prove these grounds.