Renter’s Rights Bill: What it means for you

The Renter’s Rights Bill, means big changes are on the horizon for the private rental sector, or does it? We’ve compiled an extensive list of what the Bill means for landlords below.


1. Abolition of Section 21 “No-Fault Evictions” 
 
One of the most significant changes in the Renters’ Rights Bill is the removal of Section 21. This section previously allowed landlords to terminate a tenancy without giving a specific reason. Under the new legislation, landlords will no longer be able to serve a “no-fault” eviction notice.  However, landlords will still be able to reclaim their property under “Section 8”, which allows for eviction based on specific legal grounds.  
 
These grounds are being strengthened to ensure landlords can: 
   Reclaim the property if they wish to “sell” it. 
  – Reclaim the property if they or close family members wish to “move in”. 
  – Evict tenants for serious breaches of the tenancy agreement, such as persistent “rent arrears”, “anti-social behaviour”, or “property damage”.  This ensures that while tenants have more security, landlords retain the ability to regain control of their property under justified circumstances. 
 
2. Introduction of Periodic Tenancies 
  All tenancies will automatically become periodic, meaning there will no longer be fixed-term contracts. Tenants will have more flexibility, but landlords can still issue notice to end a tenancy provided they follow the updated rules. 
 
3. Strengthened Grounds for Eviction (Section 8) 
  The government aims to protect landlords’ rights by improving the grounds under Section 8.  
 
Some of the new provisions include: 
  – “Faster eviction process” for tenants who fall into serious or persistent “rent arrears”. 
  – New grounds for eviction related to “anti-social behaviour” or “illegal activities”. 
  – Clearer guidelines for “property recovery”, for example, when the landlord needs the property for personal use or sale.These changes should give landlords confidence that despite the abolition of Section 21, there will still be pathways to protect their property interests. 
 
4. Decent Homes Standard 
  The Decent Homes Standard is being extended to the private rental sector, which means landlords must ensure their properties meet certain quality standards. This includes: 
  – Homes being “free of serious health and safety hazards”. 
  – Properties in a “reasonable state of repair”. 
  – Properties with “functional and effective heating and insulation” systems. 
  – Adequate kitchen and bathroom facilities, particularly in shared properties.  If your property already meets these standards, no significant changes will be needed. However, I’m happy to review your properties and advise on any necessary improvements. 
 
5. Rent Review Restrictions 
  The bill proposes measures to prevent landlords from imposing rent increases more than once per year. Tenants will also be given greater power to “challenge excessive rent increases” through an independent tribunal.  This aims to balance the need for landlords to adjust rent in line with market conditions, while protecting tenants from sudden, steep increases. 
 
6. Tenant Pet Requests 
  Tenants will now have the right to “request permission for pets”, and landlords must not unreasonably refuse. A default “no pets” policy in tenancy agreements will no longer be valid. However, landlords can require pet insurance or increased deposits to cover potential damage. This provision is designed to strike a balance between tenant flexibility and landlord security. 
 
7. Minimum EPC Standard Expected to be ‘C’ by 2028 
 
One of the most impactful updates for landlords is the tightening of energy efficiency regulations. Under the proposed changes, all rental properties will need to have an EPC (Energy Performance Certificate) rating of C or above by 2028. For new tenancies, this could come into effect as early as 2025, with all existing tenancies expected to comply by 2028. 
 
What Does This Mean in Practice?  
Current Standard: The minimum EPC rating for rental properties is currently set at E. The new requirement for a C rating represents a significant jump, which may require considerable upgrades to older or less energy-efficient properties. 
 
Improvements Needed: For many landlords, meeting this standard may involve: 
– Upgrading insulation (walls, loft, or floor insulation). 
– Installing double or triple-glazed windows. 
– Upgrading boilers or heating systems to more energy-efficient models, such as heat pumps. 
– Installing solar panels or other renewable energy sources to improve energy performance. 
– Smart thermostats and energy-efficient lighting could also help improve ratings. 
 
Costs and Government Support: While these upgrades can be costly upfront, they will potentially increase the long-term value of your property and reduce utility costs for tenants. The government is likely to offer financial incentives or grants to assist landlords in making the necessary improvements, but details are still being clarified.  
 
What Happens if Properties Don’t Meet the Standard? 
 
Landlords who fail to meet the minimum EPC requirement will not be able to let or renew tenancies in their properties. Non-compliance could also result in financial penalties. It’s advisable to begin reviewing your properties’ energy efficiency now to identify any necessary upgrades before the deadline approaches. 
 
Benefits for Landlords: Properties with higher EPC ratings are typically more attractive to tenants, as they lead to lower energy bills. Future-proofing your property now against likely energy regulation changes could help avoid more costly retrofits later.  
 
Increased property value: An energy-efficient home can command a higher sale price or rent. 
 
8. Bidding Wars on Rental Properties 
 
Another change being discussed is a ban on bidding wars between prospective tenants. Currently, in high-demand markets like London, tenants can offer to pay more than the advertised rent to secure a property. This practice is likely to be banned under the new legislation, ensuring that landlords stick to the advertised price. 
 
What This Means for Landlords: 
While this could limit flexibility in maximizing rental income in high-demand periods, it will create a more transparent and fair process for tenants, reducing potential conflicts. It also ensures compliance with the bill’s broader goal of making renting fairer and more predictable for tenants. 
 
 
What’s Next? 
 
The Renters’ Rights Bill is currently passing through Parliament, and there may still be some adjustments to the final legislation. 
– Full implementation of the changes is expected within the next “12 to 18 months”. 
– We will keep a close eye on these developments and provide further updates once the government confirms final details.  
 
If you’d like any more personalised advice as to how this affects your properties, please do not hesitate to get in touch.