Letting Agents Sheffield

The Renters’ Rights Bill (RRB) represents one of the most far reaching reforms the private rented sector has experienced in recent years. Designed to create fairer and more balanced conditions for tenants, the legislation introduces a wide range of new requirements covering tenancy structures, property standards and landlord obligations with the overarching aim of modernising the UK rental market.

For landlords it is essential to understand the scope of these changes, as the RRB will significantly alter many established practices and processes. Here at Horizon Lets our priority is to help landlords prepare effectively, enabling a smoother transition and ongoing compliance. Below we outline the key provisions of the Renters’ Rights Bill and their implications for landlords.

What is the Renters’ Rights Bill?

The Renters’ Rights Bill is a comprehensive reform intended to make renting fairer, safer and more secure for tenants within England’s private rented sector (PRS). It introduces new rules governing tenancy agreements, eviction processes, rent increases and property standards all aimed at improving the quality and stability of rented homes.

For landlords the Bill brings substantial changes to tenancy management and property maintenance requirements. Introduced by the Labour government the legislation applies to landlords and tenants in England while Scotland and Wales will continue to operate under their own distinct rental frameworks.

What are the key changes in the Bill?

Outlined below are the principal reforms and how they are expected to reshape the private rented sector for landlords.

Abolition of Section 21: ending ‘no-fault’ evictions

One of the most significant reforms is the removal of Section 21 which previously allowed landlords to regain possession without providing a reason. Under the new framework, landlords will need to rely on a valid statutory ground for possession applying to both new and existing tenancies.

Key points include:

  • Section 8 grounds will expand to nearly 40 reasons including selling the property, landlord occupation, serious rent arrears, antisocial behaviour and tenancy breaches.
  • Approximately half of these grounds will be mandatory requiring courts to grant possession if proven. The remainder will be discretionary with notice periods ranging from immediate effect to up to four months.
  • These provisions will come into force from the Bill’s formal commencement date.
  • Landlords with active Section 21 notices at that point will have a three month window to initiate possession proceedings.

New tenancy framework

From the commencement date substantial changes to tenancy structures will apply:

  • All tenancies will become periodic operating on a rolling monthly basis.
  • Fixed-term tenancies will be abolished including existing agreements which will automatically convert to periodic tenancies.
  • There will be no minimum tenancy length. Tenants may give two months’ notice to leave at any point from the start of the tenancy.
  • These provisions will apply to both new and transitioning tenancies.

New rules on rent increases

Under the Bill rent increases will be limited to once per year and must be accompanied by a minimum of two months’ notice. Rent review clauses will no longer be permitted within tenancy agreements. Landlords however may reduce rent at any time and as frequently as they choose.

Additional considerations include:

  • Tenants will have the right to challenge rent increases at the First-tier Tribunal.
  • The Tribunal may reduce the proposed rent if it is deemed to exceed market levels.
  • Where a tenant is experiencing undue financial hardship the Tribunal may delay the increase by up to two months.

Decent Homes Standard and Awaab’s Law: implications for property standards

These measures are intended to improve the condition and safety of rented homes:

  • The Decent Homes Standard will be extended to the private rented sector requiring properties to meet defined safety and maintenance benchmarks.
  • Awaab’s Law will impose strict timelines for addressing health hazards including damp and mould with emergency risks requiring action within 24 hours.
  • While implementation timelines remain uncertain, current government consultations suggest a phased rollout between 2035 and 2037.
  • Final compliance requirements for landlords have yet to be confirmed.

Simplifying rent payments: no bidding and no rent in advance

The Bill also seeks to simplify the rental process:

  • Landlords will be prohibited from accepting offers above the advertised rent effectively ending rental bidding practices.
  • Accepting rent in advance will no longer be permitted.

New Ombudsman and landlord database

To improve consistency and dispute resolution the Bill introduces a new Private Rented Sector Ombudsman to handle tenant complaints and issue binding decisions. Alongside this a national landlord database will be established, requiring landlords to register themselves and their properties as evidence of compliance with regulatory standards.

Key points to note:

  • Registration will be mandatory. Failure to register may result in financial penalties and in most cases prevent landlords from obtaining possession orders.
  • Both the Ombudsman and the database are expected to be introduced gradually through secondary legislation during 2026–2027.
  • As with other elements of the Bill, precise implementation dates have yet to be confirmed.

Greater inclusivity: children, benefits and pets

These provisions aim to promote inclusive renting while maintaining practical safeguards for landlords:

  • Landlords will be prohibited from refusing tenants solely because they have children or receive benefits.
  • Prospective tenants may still be declined based on affordability assessments.
  • Landlords must reasonably consider requests to keep pets and cannot unreasonably refuse them.
  • Properties may still be advertised as “no pets,” as the obligation applies once a tenancy has commenced.
  • Further guidance is expected regarding pet-related conditions including insurance and deposit arrangements.

When will the new tenancy rules take effect?

The Bill has now received Royal Assent meaning it is formally law. However not all provisions will come into force immediately, with several measures phased in over the coming years as outlined above.

It is expected that reforms relating to tenancy structures and the abolition of no-fault evictions will be prioritised. The Government has committed to announcing an implementation period to allow the sector sufficient time to prepare.

What are the consequences of non-compliance?

Failure to comply with the Renters’ Rights Bill may result in significant financial and legal penalties for landlords including:

  • Civil penalties of up to £7,000 for initial or minor breaches such as accepting rental bids, granting fixed-term tenancies or failing to register with the Ombudsman or landlord database.
  • Fines of up to £40,000 for serious or repeat offences with unlimited fines and potential criminal prosecution in the most severe cases.
  • In certain circumstances tenants may also be entitled to reclaim up to two years’ rent including for illegal evictions, unsafe living conditions or breaches of tenancy regulations.

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