The rental sector is about to experience its biggest shake-up in over 35 years. The Renters’ Rights Bill, which cleared the House of Commons this January and is now making its way through the Lords, will fundamentally change how rental properties are managed throughout England.
At the time of writing, we’re looking at a potential passing into law and implementation date around October 2025. This legislation will touch every Assured Shorthold Tenancy (AST) out there, whether existing or new. So if you have any rental properties in your portfolio, you’re going to be impacted. There are a couple of exemptions, including for company lets and rentals above £100k yearly.
Naturally, many landlords and those involved with home lettings are worried and concerned about what this means for them. If that’s you, take a deep breath. Here at Roe & Co, we’ve got a small team of lettings experts already preparing to make this transition as smooth as possible for you.
Renters’ Rights Bill Changes That Will Affect Your Rental Properties
Let’s start with the immediate changes for landlords that will come into effect as soon as the Bill becomes law towards the end of 2025.
1. The end of fixed-term tenancies
Perhaps the most noticeable change coming is how tenancy agreements will work:
- All tenancies will shift to a periodic basis, continuing month to month with no fixed end
- The first 12 months of any tenancy becomes a ‘protected period’
- During this initial year, you won’t be able to regain your property to sell it or move in
This might sound worrying at first glance, but it shouldn’t be too much of an issue as most tenant relationships last well beyond this initial fixed term. On average, you’re usually talking 2+ years. And it’s usually tenants who decide to move on, not landlords asking them to leave. We expect that natural pattern to continue despite these changes.
Now’s a good time to think about your plans for each property. If you’re considering selling or occupying one of your rentals in the next year or two, you might want to think about implementing this before the Bill comes in.
2. New possession pathways
The much-discussed Section 21 ‘no-fault’ evictions are being removed from the landlord locker. Instead, you’ll need to use specific Section 8 grounds when you need to regain your property.
The Bill has adapted these grounds to include:
- When you or your family members need to live in the property
- When you’re planning to sell
- When tenants fall behind on rent (changing from 2 to 3 months of arrears)
- When tenants breach other terms of the agreement
- When there’s anti-social behaviour
The timeframes are changing significantly too. If you need to sell or move in, you’ll now need to provide 4 months’ notice instead of 2 – and remember, you can’t issue this during the first year of a tenancy. Then, you’re not allowed to let the property out again for a full year after the notice period expires.
So, let’s say, the Bill becomes law in October 2025 and you decide to serve notice on 1st December 2025. The 4 month notice period would run until 31st March 2026. After getting the property back, you couldn’t let it out again until 1st April 2027.
These extended timelines mean you’ll have to think things through more and plan ahead.
3. New approach to rent management
The way you handle rent is changing too:
- You’ll only be able to increase rent once a year through the Section 13 notice process
- Any rent review clauses currently written into agreements will be void and no longer apply
- All increases will need market evidence to support them
- Tenants will have simplified paths to challenge increases they feel are excessive
Another significant change affects how rent can be collected. Advance payments will be limited to just one month’s rent. If you have tenants currently paying several months upfront, they’ll need to transition to monthly payments after the Bill comes in.
Our team can handle all rent review processes professionally, making sure of proper notice and supporting evidence for any increases.
4. Changing rules for tenant selection and pets
The Bill brings key changes on how you can choose tenants:
- You won’t be able to decline applicants simply because they receive benefits
- Families with children cannot be automatically excluded (though the property must be appropriate)
- Any existing restrictions in mortgages or leases regarding these groups will become unenforceable
The approach to pets is changing too. Existing blanket bans on pets will no longer be valid. While you can still initially advertise as ‘no pets’, once a tenancy begins, you’ll need specific reasons to refuse a pet request, such as:
- Restrictions in the building’s head lease
- The tenant declining to obtain pet insurance
The legislation also addresses ‘rental bidding wars’ – you’ll need to set a specific asking rent and won’t be allowed to take offers above this amount.
Preparing For Future Requirements Under The Renter’s Rights Bill
As well as the immediate changes, there will be things to look out for and be aware of going forward. Let’s take a look.
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Upgraded property standards
There are a number of new housing quality standards that will be phased in.
For the first time, private rentals will need to meet the Decent Homes Standard. This is to make sure properties are safe and hazard-free. With an estimated one-fifth of rental homes currently falling below this standard, we think this is a good move.
New timeframes for addressing serious issues like damp and mould will be introduced under Awaab’s Law. This will create clear expectations for landlords to resolve these problems promptly and will be phased in.
For example, from October 2025 social landlords will be required to address damp and mould hazards that present a significant risk of harm to tenants within a fixed timescale. From the same date, social landlords will also have to address all emergency repairs, as soon as possible and within no longer than 24 hours.
From 2026, these requirements will be expanded to further hazards beyond just damp and mould. This is likely to include hygiene hazards, extreme cold and heat, structural issues and fire hazards. We await government insight as to what exactly these further hazards will be during the second phase.
Looking a little further ahead and on the environmental and energy front, all rental properties will need to achieve an EPC rating of C by 2030. Starting these improvements gradually now is far more manageable than facing a last-minute rush.
Non-compliance with these standards could result in hefty penalties – initial fines up to £7,000, with repeated or serious breaches attracting penalties up to £40,000.
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Registration to new digital database
The Bill introduces a few new changes on the admin side.
- All landlords will need to join a property ombudsman scheme
- A digital database will be created where all rental properties must be registered
- Local councils will have stronger powers to identify non-compliant landlords
These systems won’t all appear immediately when the Bill becomes law but will roll out in phases. We’ll keep you informed of all deadlines and make sure your properties are properly registered.
What Do Landlords Do Now?
While there’s no need for panic straight away, it’s important to put some forward planning in place. We suggest a few things:
- Take a fresh look at your portfolio – which properties might need the most attention to meet new standards? Addressing maintenance issues proactively is always more cost-effective than emergency repairs or compliance penalties.
- Review your approach to rent increases – with annual limitations, you may have to be a little more strategic in your planning.
- If selling your property is on the horizon, you may want to get a plan in place sooner rather than later.
- Review your record-keeping approach as good documentation will be increasingly valuable.
How Roe & Co Will Support You
Does it all sound like a bit of a headache?
We understand. These are big changes. Since they were first discussed, we’ve been preparing for these changes and are ready to help you navigate them. If it all sounds a little too much for you as a landlord, here’s how we can help:
- Our complete management approach – Our team stays on top of all legislative developments so you don’t need to become a property law expert overnight. With Roe & Co, you’ll work with the same experienced agent from start to finish. This will give you the consistency you need during this transition period. Our comprehensive management includes keeping your properties compliant with all standards, from routine maintenance to meeting the Decent Homes requirements. We’ll also make sure that all required notices follow the correct procedures and timelines to prevent you from making any costly mistakes.
- Expert tenant management – We’ll continue finding suitable tenants through our thorough vetting process while sticking to the new anti-discrimination requirements. Our team will handle rent reviews professionally, managing all Section 13 processes with proper market evidence. We address maintenance needs promptly, preventing small issues from developing into compliance concerns. All property documentation will be maintained meticulously, ready for the new registration requirements.
- Future-proofing strategies – As future changes come round, we’ll have tailored recommendations for your specific property so you can plan for the implementation. We’ll also give you regular updates as the Bill progresses and regulations are clarified.
Next Steps With The Renters’ Rights Bill
The Renters’ Rights Bill certainly brings significant changes. But with the proper support, your property portfolio can continue to perform well.
If you’re looking for some help and guidance, don’t hesitate to get in touch. We can help guide you through every step of these daunting changes.
Pop in for a chat at our office or give us a call on 01204 582123 and our friendly team will be ready to answer your questions and get you prepared. You can also contact us to book a free rental valuation.
