The Renter’s Rights Bill (RRB) is due to become law by summer 2025. The legislation heralds the biggest changes in letting property since the Housing Act of 1988.

Section 21 Scrapped & New Section 8 Grounds

The RRB will scrap Section 21 Notices.

Currently, a private landlord can serve a Section 21 of the Housing Act 1988 (HA 1988) to terminate a tenancy agreement without having to provide any reason and/or establish fault on the part of the tenant. This is often referred to as a no-fault eviction.

A Section 21 notice requires the landlord to provide the tenant with a minimum two months’ notice to leave the property. If the tenant fails to leave the property, then the landlord must seek a repossession order from the courts. 

Under the RRB, landlords will not be able to evict tenants without a valid defined reason approved through the courts. Tenants will be able to end a tenancy by giving the landlord two months’ notice.

Landlords will need to use existing and newly introduced Section 8 grounds to regain possession of their properties.

Section 8 grounds are either mandatory or discretionary. Some of the more common grounds that will be used are listed below:

Mandatory Grounds for Possession:

  • Landlord Intends to Sell Landlords can seek possession if they intend to sell the property. Notice cannot be served until the tenancy has lasted at least 8 months, with a 4 month notice period, ensuring the tenancy reaches a minimum of 12 months. Landlords are restricted from re-letting or marketing the property for 12 months after serving notice or initiating possession proceedings.
  • Landlord or Family Member to Occupy Expanded to allow possession if the landlord or close family members (e.g. spouse, parent, child) intend to live in the property. A 4 month notice period is required, and notice cannot be served during the first 8 months of the tenancy.
  • Severe ASB/Criminal Behaviour Tenant convicted of criminal offence, breached criminal behaviour order or convicted of noise nuisance. Notice period is immediate.
  • Rent Arrears Applicable when the tenant has at least 3 months of rent arrears at both the notice service and court hearing dates. The notice period will be 4 weeks.
  • Student Let A landlord can recover possession of an HMO let to full-time students at the end of the academic year to let to students again. The notice period will be 4 months.
  • Death of Tenant Allows repossession if the tenant has died, and the tenancy has passed to someone without the right to succeed. A 2 month notice period is required.
  • No Right to Rent Applicable if the tenant does not have the legal right to rent under immigration laws. A 2 week notice period is required.

Discretionary Grounds for Possession:

  • Any Rent Arrears When the tenant is in any amount of arrears at the time of notice and court hearing. The notice period will be 4 weeks.
  • Persistent Delay in Rent Payments For tenants who have consistently been late in paying rent, even if no arrears exist at the time of notice. A 4 week notice period is required.
  • Breach of Tenancy Agreement Applicable when the tenant breaches terms of the tenancy agreement, excluding rent payment. A 2 week notice period is required.
  • Deterioration of Property If the property’s condition has deteriorated due to the tenant’s actions or neglect. A 2 week notice period is required.
  • Anti-Social Behaviour The tenant is causing a nuisance or annoyance to people residing at the property or visiting the property. The tenant is convicted in engaging in illegal activities or using the property for immoral purposes. Notice period is immediate.

Introduction of Periodic Tenancies

All assured tenancies will become periodic with no end date, removing fixed-term contracts. Tenants will be able to end a tenancy by giving the landlord 2 months’ notice from the first day of the tenancy.

Rent Increases 

Under the RRB, rent can only be increased once a year. A Section 13 notice must be served, setting out the new rent and giving at least 2 months’ notice.

The legislation also prevents landlords asking for rents above the advertised rent to stop rental bidding wars.

Tenants will be able to challenge unreasonable rent increases which exceed the market rate at the First-tier Tribunal. The tribunal will determine what the market rent should be. The government’s aim is to prevent landlords charging unaffordable rents above market rents to evict a tenant.

Banning Discrimination (Pets, Families and Benefit Recipients) 

The RRB prevents landlords from discriminating against tenants who have children, receive benefits of wish to keep pets.

The Bill will ensure that terms in mortgages and superior leases, which restrict the letting to private tenants who do not have children or do not receive benefits, have no effect. As such, if tenants do have children or are in receipt of benefits, the lender or landlord cannot claim a breach of contract even if the contract expressly prohibits this. 

Tenants will also have the right to request pets in their homes. Landlords will need to provide reasons why a request is refused.

Awaab’s Law and the Decent Homes Standard

Awaab’s Law, introduced in July 2023 addresses health risks of damp and mould for social housing landlords and will apply to private landlords. The legislation requires landlords to fix serious hazards in their properties, such as dampness or mould, within a set timeframe. Non-compliance will risk penalties.  

The Decent Homes Standard, first introduced in 2000 by the government to ensure that social housing meets set standards will also apply to private rentals. If a property fails to meet the requirements, local authorities can take enforcement action including civil penalties of up to £7,000.

The Private Rented Sector Database 

What was previously called the ‘Property Portal’ will now be renamed as the ‘Private Rented Sector Database’. Landlords will be legally required to register themselves and their properties on the database or face financial penalties and/or criminal prosecution.

Create a landlord redress scheme

The RRB will introduce a new ombudsman service for the private rented sector, which all private landlords would be required to join. The service will provide binding resolution for tenants’ complaints about their landlord. It will have powers to compel landlords to issue an apology, provide information, take remedial action, and/or pay compensation