The Renters’ Rights Bill: What Landlords Need to Know
The Renters’ Rights Bill represents the most significant reform of the private rented sector since the Housing Act 1988. It is set to pass Royal Assent and become law in September, with a commencement date more than two months later. This legislation will drastically change the way landlords and tenants operate in England.
If you are a landlord, understanding these changes is crucial to protect your investment and stay compliant. Below, we have broken down the three biggest reforms you need to prepare for.
1. The Abolition of Section 21 ‘No Fault’ Evictions
Currently, Section 21 allows landlords to regain possession of their property quickly and without needing to prove fault. Under the Renters’ Rights Bill, this will be abolished.
Landlords will instead have to rely on expanded Section 8 grounds to evict tenants. Both mandatory and discretionary grounds have been updated, covering issues such as rent arrears, anti-social behaviour, or breaches of tenancy.
The government’s aim is to end what it sees as “arbitrary” evictions, giving tenants more security and the ability to settle in their communities. For landlords, this could mean:
Longer periods of unpaid rent if cases go to court.
Increased property damage and dilapidation risks before possession is regained.
Tenants facing heavier financial penalties if courts rule against them.
Being prepared for this shift with thorough referencing, regular property checks, and professional management will be essential.
2. A Single System of Periodic Tenancies
Another major change is the end of Assured Shorthold Tenancies (ASTs). These will be automatically replaced by periodic tenancies, meaning:
Tenancies will roll on a month-to-month basis indefinitely.
Tenants must give two months’ notice to end the tenancy.
There will be no official minimum term for new or existing agreements.
The government says this will empower renters to leave substandard homes more easily. For landlords, it means less certainty and a potentially more rigid landlord-tenant relationship, as tenancy agreements lose flexibility.
3. Rent Increases Standardised via Section 13
Under the new system, Section 13 notices will be the only legal method to raise rents. This means:
Rent review clauses and renewal agreements will be abolished.
Landlords must give two months’ notice of any rent increase.
Rent rises may become more frequent as costs rise and flexibility decreases.
While this may streamline the process, it could also lead to more disputes, making it essential for landlords to stay transparent and document all rent adjustments properly.
What This Means for Landlords
The Renters’ Rights Bill will reshape the private rental market, placing far more emphasis on tenant security while limiting some of the tools landlords have relied on for years.
If you are a landlord, now is the time to:
Review your tenancy agreements to prepare for the shift to periodic tenancies.
Plan for longer notice periods and potential legal complexities.
Work with a professional letting agent to navigate these changes smoothly.
At Woodstead Sales & Lettings, we specialise in supporting landlords through legislative changes with full property management from just 8% (including VAT, set-up fees apply). We can help ensure your properties remain compliant and profitable in this new landscape.
Contact us today to discuss how we can help you prepare for the Renters’ Rights Bill.