The Renters’ Rights Bill outlines important new rights for tenants and is anticipated to come into law after Easter of this year (April 2025). Landlords need to be aware of these rights to ensure they follow the law and take into account the changes. This includes providing safe and livable housing, returning security deposits promptly, and handling repairs quickly. Landlords need to understand these rules to avoid legal issues and maintain good relationships with tenants. This blog will describe the key changes and how they impact landlords in the UK.
Key changes for landlords
1. The demise of Section 21 "No-Fault" evictions
One of the most impactful changes is the abolition of Section 21 notices. These “no-fault” evictions allowed landlords to remove tenants with little to no reason, contributing significantly to rental insecurity and, some argue, homelessness.
Impact on landlords – Landlords will now primarily rely on Section 8 notices for evictions, which require specific and valid grounds, such as:
- Rent arrears
- Property damage
- Anti-social behaviour
- Breach of contract terms
- Landlord or family member wishing to occupy the property
- Sale of the property
- Property redevelopment
Navigating Section 8 – Landlords must understand the specific grounds for Section 8 notices and ensure they have sufficient evidence to support their claims. Seeking legal counsel is essential to guarantee that appropriate protocols are adhered to and to avoid potential legal challenges.
2. Enhanced rights for tenants to keep pets
Previously, landlords could impose blanket bans on pets. The new legislation grants tenants a legal right to request to keep a pet, and landlords cannot unreasonably refuse their request.
Landlord considerations
- Landlords can implement reasonable restrictions, such as requiring pet insurance to cover potential damage.
- Careful consideration of pet-related clauses in tenancy agreements is essential.
- Clear guidelines regarding pet care and responsibilities should be established.
Potential benefits
Allowing pets may attract longer-term, more stable tenants, which can significantly enhance the appeal of the property.
3. Ban on rental bidding and discriminatory practices
The Bill aims to curb practices that exploit the current housing crisis.
- Rental bidding – Landlords will be prohibited from asking for, encouraging, or accepting rents above the advertised asking price.
- Discrimination – Practices like “No DSS” (No Department of Social Security) adverts, which discriminate against tenants receiving benefits, will be outlawed.
Impact: This change promotes fairness and prevents landlords from unfairly capitalising on high demand in competitive rental markets.
Subscribe to our newsletter
4. Transition to periodic tenancies
Fixed-term tenancies will be phased out, and all tenancies will transition to a periodic basis.
Benefits
- Increased flexibility for both landlords and tenants.
- Tenants can leave with reasonable notice, while landlords retain the ability to end tenancies through proper Section 8 procedures.
Considerations – Landlords will need to adapt their tenancy agreements and rental strategies to accommodate these changes.
5. A decent home standard for private rentals
For the first time, privately rented properties will be subject to a Decent Homes Standard, similar to those in place for social housing.
Key requirements – Properties must be:
- Safe
- In a reasonable state of repair
- Have adequate facilities
- Provide proper heating and insulation
Enforcement – Local authorities will have the power to issue improvement notices and enforce penalties for non-compliance.
Impact – This change will improve living standards for tenants and ensure that private rented properties meet basic safety and habitability standards.
New regulations and obligations
- Registration – Landlords will be required to register with a new Private Rented Sector Landlord Ombudsman Service and a dedicated database.
- Ombudsman service – This service will provide guidance, support, and independent dispute resolution for both landlords and tenants.
- Database – The database will serve as a central repository of information for landlords, tenants, and local authorities.
Fees – Registration with these services will likely involve a small annual fee per property.
Enhanced enforcement measures
Local authorities will have increased powers to investigate and enforce the new regulations.
Penalties for non-compliance will be strengthened, including:
- Civil penalties – Up to £7,000 for initial or minor non-compliance.
- Significant fines – Up to £40,000 for severe, persistent, or repeat violations.
- Criminal prosecution – In cases of severe or persistent non-compliance.
Rent repayment orders – Tenants will be able to claim rent repayment orders from landlords who have failed to comply with private rented sector laws. The maximum amount recoverable has been increased.
What this means for landlords
1. Stay updated – Keep track of the Bill’s progress and any changes.
2. Check tenancy agreements – Make sure your agreements follow the new laws as soon as the details are confirmed, especially regarding pets, rent increases, and how to end agreements.
3. Prioritise property maintenance – Ensure your properties meet the Decent Homes Standard and fix any repairs as soon as possible.
4. Build good tenant relationships – Communicate openly and treat your tenants with respect.
5. Seek professional help – Talk to legal and property management experts to understand the new laws and stay compliant.
6. Follow best practices – Use responsible landlord habits, like keeping detailed property inventories, giving clear information to tenants, and responding quickly to maintenance requests.
How can Bradleys’ Accountants help landlords?
At Bradleys, we help landlords deal with the new Renters’ Rights Bill. We offer guidance on:
- Tax implications – We can help you understand how the new laws affect your taxes, such as deductions for maintenance and allowable expenses, and how to handle rental income.
- Financial planning – We can assist in budgeting for expenses, increasing rental income, and following tax rules.
- Record keeping – Our accountants can help set up a good accounting system to keep accurate financial records, ensuring adherence to tax regulations and facilitating seamless audits.
- Legal compliance – Our experienced accountants can inform you about your legal responsibilities under the new laws so you can avoid penalties.
- Business structure advice – We can help you choose the best business structure for your rental properties, like sole proprietorship or limited company, based on tax efficiency and liability.
By working with us, landlords can better manage the challenges of the Renters’ Rights Bill and support the success of their rental properties.
Conclusion
The Renters’ Rights Bill introduces substantial reforms to the private rental market, reshaping the dynamics between landlords and tenants. While these new regulations may pose challenges for property owners, they simultaneously present an opportunity to cultivate more robust and ethically responsible relationships with renters. By embracing these changes and implementing best practices in compliance with the new laws, landlords can not only navigate the evolving rental landscape but also foster a positive and mutually beneficial experience for both parties. This proactive approach can lead to greater tenant satisfaction and long-term success in a more regulated environment.
