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The Renters’ Rights Act has officially become law, bringing in some of the biggest changes to England’s private rental market in decades.
Designed to give tenants more security and improve housing standards, the new legislation will phase out ‘no-fault’ evictions under Section 21, replace fixed-term tenancies with open-ended ones, and place tighter limits on rent increases.
The Act also aims to improve the quality of rental properties through an updated Decent Homes Standard, and by creating a national landlord register, as well as introducing a new ombudsman to help resolve disputes more fairly. In addition, Awaab’s Law – which compels landlords to fix health and safety hazards such as mould within set timeframes – will now apply to private rentals too.
However, the Bill is not without its critics, some of whom argue that it could result in an exodus of landlords, as they will now need to provide specific reasons and comply with various rules if they want to take possession of their properties.
Here, we explain which new measures the Renters’ Rights Bill has ushered in, and what they mean for both tenants and landlords.
What the Renters’ Rights bill means for tenants
If you’re currently renting your home from a landlord, you will have several more rights as a tenant.
These include:
Greater controls on rent advances and increases
Landlords will only be able to ask tenants for one month’s rent in advance, whereas currently, rent in advance is not limited.
Tenants must receive at least two months’ notice from landlords of any rent increases, and rents cannot be raised more than once a year.
End to no-fault evictions
The new rules mean that landlords cannot evict tenants simply to find a new tenant. In other words, you can’t be served notice on the grounds that the landlord wants to re-let the property at a higher rent or to someone else.
Previously, landlords could use what’s known as a Section 21 notice (no-fault eviction) to regain possession of a property, often to re-let it. Alternatively, they could sell a property and ask the tenant to leave, or sell the property with tenants still living there.
Under the reforms, eviction can now only happen if there’s a legal reason behind it, such as the tenants owing rent.
Landlords can also recover possession of their property if the property is being sold and the sale requires it, but not just to find a new tenant. These changes are designed to enable tenants to challenge poor living conditions and unreasonable rent increases without fear of retaliatory eviction by their landlords.
No more fixed term tenancies
If you’re a tenant with a fixed term assured shorthold tenancy (AST), which has a fixed end date, once the new rules come into effect, this will become a ‘periodic’ assured tenancy.
Rather than having a set end date, you’ll have a ‘rolling’ monthly or weekly tenancy, providing greater security. You must give your landlord at least two months’ notice if you want to end your tenancy, but they can agree to a shorter notice period.
A new Ombudsman to resolve disputes
Previously, landlords could refuse outright to allow tenants to have a pet living in their property. Following the introduction of the Renters’ Rights Bill, however, every tenant has the right to ask for a pet, and the landlord must not unreasonably withhold consent and should provide tenants with a response to their request within 28 days.
Whilst this is good news for animal lovers who have previously not had any rights if they want a pet to live with them, it may be less positive for landlords as there is an increased risk of property damage. Even well-behaved animals can leave behind fur, smells, or minor damage that requires deep cleaning or replacement before a new tenant moves in.
Mr Smith said: “The legislation does not provide what counts as unreasonably withholding consent. Many tenancy agreements already contain similar provisions.
“Given the heavy restrictions on tenant deposit under the Tenant Fees Act 2019 and the refusal by the House of Commons to allow a 3-week pet damage deposit, there seems to be greater financial risks for landlords who consent to the occupation of pets.
“While damages could theoretically be recovered through the small claims court, landlords risk throwing good money after bad in seeking to recover damages, where tenants often have less means.”
No more fixed term tenancies
A new Private Rented Sector Ombudsman will be set up to help resolve tenants’ complaints, where they’ve failed to reach a solution with their landlords. According to GOV.UK, the service “will offer fair, impartial and binding resolution for tenants and will have powers to compel landlords to issue an apology, provide information, take remedial action and/or pay compensation. “
What it means for landlords
If you’re a landlord, the Renters’ Rights Bill means you’ll need to comply with many new regulations. As well as those outlined above, these include:
Rent increases must be at the market rate
Landlords will only be able to raise rent to the current “market rate.” If you increase rents beyond this, your tenant will have the right to challenge you in a civil court. The new Bill also aims to put an end to bidding wars by preventing tenants from being asked to pay more than the advertised price.
12-month no re-letting rule
Landlords won’t be able to ask tenants to leave in order to sell their property or move in themselves during the first 12 months of a tenancy.
After the first year, they can only give notice for these reasons if they provide their tenant with at least four months’ notice.
If a landlord does evict a tenant to sell or move into the property, they can’t then re-let it to new tenants for another 12 months.
Daniel Smith, Senior Associate in the Dispute Resolution Team at law firm Gardner Leader, who specialises in landlord and tenant matters, lease interpretation, and property disputes, said: “The risk to landlords is that if a sale collapses, through no fault of their own, then the property will be vacant for a 12-month period.
“Of much greater risk to landlords is if they refrain from serving notice on tenants until closer to completion, or after exchange, at a time when they are contractually obliged to sell, as serving notice is not the same as guaranteeing vacant possession.”
Renters’ rights set to improve, but tenant costs remain high
Renting a property has many advantages, and greater protections for tenants further boost its appeal.
However, unlike a mortgage, rent must be paid for life, and those renting into retirement face significant extra costs.
According to analysis by Standard Life, people who rent throughout retirement will need an extra £398,000 in savings compared to homeowners – up £7,000 from 2024. This is based on average annual rent increases of 3.7% since 2015. Find out more in our guide Renting or buying – which is right for you?
Claire Altman, Managing Director at Standard Life, part of Phoenix Group, commented: “When planning for retirement, it’s crucial to consider how essential expenses like housing will be covered. If being mortgage-free is not an option, products like annuities, which offer a guaranteed income for life, may help ensure ongoing costs such as rent and essential bills are met.
“The steady rise in rental costs over the last decade highlights just how important it is for pension savings to keep pace. Financial resilience typically declines later in life, so having a robust and well-planned income strategy becomes even more important.
“As the lines between housing and retirement become increasingly intertwined, it’s clear that a holistic approach is needed. For some, prioritising homeownership may be a key goal, while for others, focusing on building pension wealth will take precedence. The critical point is that both are long-term financial commitments which require careful planning.”
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A final thought…
The Renters’ Rights Act represents a major shift in the balance of England’s rental market. For tenants, it promises greater security and higher standards. For landlords, it brings more scrutiny, less flexibility, and a need to adhere to more rules.
These new obligations, which follow several other tax and regulatory changes that have made it less appealing to own rental property, could be the straw that breaks the camel’s back for some landlords, especially smaller or “accidental landlords” who might have inherited a property that they now rent out.
Sián Hemming-Metcalfe, Operations Director at Inventory Base, said: “What’s vital now is that the Government resists the temptation to keep moving the goalposts. The private rented sector is essential to housing supply, and constant legislative change only fuels uncertainty. The focus should now be on supporting responsible landlords rather than penalising them.”
Both landlords and tenants should bear in mind that these changes won’t be implemented until next year, so current laws remain in place for now.
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