The Renters’ Rights Bill A COMPLETE GUIDE TO
A detailed look at the Renters Rights Bill and what its sweeping reforms mean for landlords.
OVERVIEW
The new Renters Rights Bill includes sweeping reforms that will result in a dramatic shift in the private rental landscape for both landlords and agents. This legislation brings an end to Section 21 "no-fault" evictions resulting in reduced powers to regain possession of properties. With increased restrictions on tenant evictions, landlords may face months or even years struggling to remove problematic tenants. The end of fixed-term tenancies means landlords may face even greater uncertainty with their rental income. Without the security of a fixed-term agreement, tenants can leave with minimal notice leading to potentially prolonged void periods and an unpredictable income stream. The Bill also amplifies the pressure on landlords to maintain meticulous documentation and records, as increased scrutiny and tighter regulations demand transparency at every stage of the tenancy. From tenant communications to property maintenance logs, the need for precision in record-keeping has never been higher.
With local authorities being granted expanded powers to enforce compliance, councils have the authority to impose substantial fines for even minor infractions, making it essential for landlords to follow every regulation to the letter. This implies stricter oversight, with councils empowered to act swiftly and decisively against landlords who fall short.
In this new regulatory landscape, experienced letting agents have never been more essential for landlords looking to navigate the complexities of the Renters Rights Bill.
However, the Bill demands a significant shift from traditional letting agency services, moving away from basic tenant placement and rent collection to a much more dynamic, compliance- focused and proactive approach. With increased regulation and local authority power, letting agents must now play a central role in ensuring landlords are always one step ahead, adapting swiftly to each new requirement. Simply handling the basics is no longer enough; agents need to innovate with robust compliance frameworks, tech-enabled record-keeping, and advanced reporting systems to keep landlords protected in real-time. Adaptability and forward-thinking solutions are key. This new era calls for letting agents to be not just facilitators, but strategic partners capable of anticipating issues, mitigating risks, and ensuring seamless adherence to complex regulations.
THE RENTERS RIGHTS BILL WILL...
Abolish Section 21 evictions and move to a simpler tenancy structure where all assured tenancies are periodic. This will take place in one stage - when the Bill passes into law, all fixed-term tenancies in England will automatically convert to periodic tenancies and new tenancies will essentially be periodic from the start of the tenancy. Update Grounds for Possession - Selling: A 12-month protected period will be introduced at the beginning of a tenancy during which landlords cannot evict tenants in order to sell or move into the property. A four-month notice period will be required for these grounds. Update Grounds for Possession - Arrears: Rules will be tightened to protect tenants who fall into temporary arrears by increasing the mandatory threshold for eviction from two months to three and extending the notice period from two weeks to four. Reform Rent Increases: Once a year, landlords will be able to increase rents up to the market rate (defined as the price that would be achieved for the property as a newly advertised let) by issuing a Section 13 notice which sets out the new rent and gives at least two months’ notice before it takes effect. As currently, tenants will be able to challenge increases they believe are above market rate through the First-Tier Tribunal. Introduce a new Private Rented Sector Landlord Ombudsman that will provide quick, fair, impartial and binding resolution for tenants’ complaints about their landlord. Create a Private Rented Sector Database on which both landlord and property details will need to be registered before a property is marketed for let. Give tenants strengthened rights to request a pet in the property, which the landlord must consider and cannot unreasonably refuse. To support this, landlords will be able to require pet insurance to cover any damage to their property. Apply the Decent Homes Standard currently used in Social Housing, to the private rented sector. Apply ‘Awaab’s Law’ to the sector, setting clear legal expectations about the timeframes within which landlords must take action to make homes safe where they contain serious hazards. Make it illegal for landlords and agents to discriminate against prospective tenants in receipt of benefits or with children. End the practice of rental bidding by prohibiting landlords and agents from asking for or accepting offers above the advertised rent. It will be illegal to accept offers made above this rate. Strengthen local authority enforcement by expanding civil penalties, introducing a package of investigatory powers and bringing in a new requirement for local authorities to report on enforcement activity. Strengthen rent repayment orders by extending them to superior landlords, doubling the maximum penalty and ensuring repeat offenders have to repay the maximum amount.
TENANCY REFORM
The Renters Rights Bill introduces transformative reforms to tenancy agreements in the UK, fundamentally reshaping the relationship between landlords and tenants. One of the most significant changes is the abolishment of Section 21 evictions . Previously, landlords could end a tenancy without providing a specific reason by issuing a Section 21 notice, offering flexibility in regaining possession of their properties. With the removal of this provision, landlords now need valid grounds to end a tenancy, which could make it more difficult to address problematic situations or regain properties when circumstances change. Additionally, the Bill brings an end to fixed-term tenancies , which traditionally provided landlords with predictable cash flow and allowed for regular reviews of tenancy terms. Instead, tenancies will largely default to open-ended, indefinite agreements, giving tenants more stability and reducing the risk of abrupt displacement. However, for landlords, this shift introduces a new level of financial unpredictability. Tenants will be able to give relatively short notice to vacate, leaving landlords at risk of unexpected void periods and income gaps, while simultaneously having fewer options for removing tenants quickly. Combined, these reforms signal a move toward increased security for renters but added complexities and risks for landlords, who may now find themselves in longer, more committed rental relationships without the flexibility to adjust quickly to changes in the rental market or personal circumstances.
GROUNDS FOR POSSESSION - SELLING
Under the Renters Rights Bill, landlords wishing to sell their investment property must now meet stricter criteria and follow a defined legal process to avoid penalties. Tenants will benefit from a 12-month protected period at the beginning of a tenancy, during which landlords cannot evict them to move in or sell the property. Landlords must provide tenants with 4 months notice of an intention to sell and also demonstrate genuine intent to sell. Landlords must ensure that the process is transparent and well-documented to prevent allegations of misuse of the sale ground. To deter misuse of the grounds for sale, the Bill introduces significant fines and penalties for landlords who attempt to avoid these regulations. If a landlord initiates an eviction under the pretence of selling the property but fails to follow through or immediately relets the property without adequate proof of a sales process, they could face steep fines imposed by local authorities. These penalties could range from thousands to tens of thousands of pounds, depending on the severity and intent of the violation. Local councils are empowered to closely monitor compliance, so landlords need to ensure all actions align with the stated purpose of sale and that comprehensive records are kept throughout the process. This regulatory tightening means landlords must approach the sale of their rental properties with careful planning and strict adherence to legal requirements, as any perceived misuse can lead to substantial financial consequences and damage to their credibility as property owners.
GROUNDS FOR POSSESSION - ARREARS
CURRENT: Susan Cope Court backlogs, combined with procedural requirements for evidencing arrears and adherence to all compliance steps, contribute to a potentially lengthy and costly repossession process. This shift emphasises the importance of early, proactive tenant engagement and precise record-keeping to avoid extended financial disruptions due to non-payment. The Renters Rights Bill introduces revised grounds and new protocols for repossession due to rent arrears, significantly impacting landlords’ ability to address non-payment quickly. The new regulations protect tenants who fall into temporary arrears by increasing the mandatory threshold for eviction from two months to three and extending the notice period from two weeks to four . These new, longer notice periods are intended to give tenants greater security and flexibility in challenging or addressing financial difficulties, but they also delay landlords’ ability to regain possession. A robust rent guarantee policy has never been more important for landlords. Realistically, these procedural changes mean that the timeline for repossession has been lengthened. Landlords may face delays of several months to over a year before they can regain control of the property, especially if the case goes to court.
RENT INCREASES
Under the Renters Rights Bill, rent increase protocols have been revised to create a more structured and tenant-friendly process. Landlords are no longer able to raise rents at their discretion; instead, they must follow a standardised procedure, providing tenants with clear notice and justification for any rent adjustments. Once a year, landlords will be able to increase rents up to the market rate (defined as the price that would be achieved for the property as a newly advertised let) by issuing a Section 13 notice which sets out the new rent and gives at least two months’ notice before it takes effect. If a tenant believes the proposed rent increase is excessive or unjustified, they have the right to challenge it through the First-Tier Tribunal. This process allows the tenant to present evidence, such as market comparisons or proof of property condition, to argue that the proposed rent increase is unreasonable.
During the review period, the rent cannot be raised, providing the tenant with a temporary reprieve from the increase until the issue is resolved. The tribunal will then assess the proposed rent in relation to market rates, property conditions, and the tenant’s position before making a determination on whether the increase is permissible. This structured process requires landlords to be transparent, reasonable, and compliant with notice periods, while also empowering tenants to contest excessive rent hikes. For landlords, it underscores the importance of basing rent adjustments on current market data.
PRIVATE RENTED SECTOR LANDLORD OMBUDSMAN
Regardless of whether they use a professional agent or not, landlords will have to join a new Ombudsman service which will provide complaint resolution services for tenants and have the power to compel landlords to issue apologies, provide information, carry out remedial action, and pay compensation. For landlords, participation in the ombudsman scheme will be a legal requirement, meaning they must register and adhere to the ombudsman’s standards. Agents who advertise properties where the landlord is not registered could face enforcement action from local councils, ranging from civil penalties of up to £7,000 to criminal prosecution or fines of as much as £40,000 for repeated breaches. These penalties will also apply to the landlords themselves, and tenants will have the right to seek Rent Repayment Orders if their landlord persistently fails to register with the Ombudsman.
THE PRIVATE RENTED SECTOR DATABASE
The Private Rented Sector Database introduced under the Renters Rights Bill is a centralised record of landlords and rental properties designed to improve transparency, accountability, and compliance within the private rental sector. Registering with the database is mandatory and will require all landlords to register their properties and provide accurate, up-to-date information on each rental unit including property condition. By creating a standardised register, the government aims to enhance oversight, helping tenants, local councils, and enforcement bodies easily identify non-compliant landlords and track the overall quality of rental housing. Again, agents will be subject to penalties if they market a property without it, and the landlord details, being registered on the system. Local authorities and housing enforcement teams will use this database to monitor landlords’ adherence to safety and property standards, conduct routine audits, and swiftly address complaints or issues flagged by tenants. For landlords, this means a higher level of accountability, as any lapses in property maintenance, safety compliance, or tenant relations can be tracked and addressed by relevant authorities. Tenants will also benefit from this database, as it provides them with access to verified information on their prospective landlords and the compliance history of properties. They can gain insights into a landlord’s record on maintenance and safety standards, creating a more informed rental process.
Simon Joyce
PROPERTY DIRECTOR Mob: 07977 235545 DDI: 01332 300109
RENTING WITH PETS
The Renters’ Rights Bill will ensure landlords do not unreasonably withhold consent when a tenant requests to have a pet in their home, with the tenant able to challenge unfair decisions. Landlords will be required to fully consider all requests on a case-by-case basis. Due to the diversity of landlords, tenants, and properties in the private rented sector, it would not be possible to legislate for every situation where a landlord would or would not be able to ‘reasonably’ refuse a pet. It will always be reasonable for a landlord to refuse a request when their superior landlord prohibits pets. Where a tenant feels that a landlord has unreasonably refused their request, they will be able to escalate their complaint to the Private Rented Sector Ombudsman or they could take the case to court. A final decision will be based on the evidence provided by both parties. The Tenant Fees Act 2019 will be amended so that landlords can require insurance to cover any damage caused by pets living in the property. If the landlord takes out the insurance, those reasonable costs will be recoverable from the tenant.
THE DECENT HOMES STANDARD
The Bill will introduce a Decent Homes Standard (DHS) in the private rented sector for the first time. It will set out DHS requirements for private rented sector homes and will provide local councils with effective and proportionate enforcement powers. If a privately rented property fails to meet DHS requirements, the local council will have a range of enforcement mechanisms available. This includes, for example, issuing an improvement notice requiring the landlord to remedy the failure within a specified timescale. Landlords who fail to comply with enforcement action can be subject to a civil penalty or criminal prosecution. If such an offence is committed, the tenant or local council can also apply to the First-tier Tribunal for a rent repayment order. There will be a legal duty on landlords to ensure their property meets the DHS. For landlords who fail to take reasonably practicable steps to keep their properties free of serious hazards, local councils will also have a new power to issue civil penalties of up to £7,000.
AWAAB’S LAW
Following the tragic and avoidable death of 2-year old Awaab Ishak due to prolonged exposure to mould in his social rented home, the Manchester Evening News, Shelter and the Ishak family led a campaign for ‘Awaab’s Law’ . This was introduced for social housing through the Social Housing (Regulation) Act 2023. The Renters’ Rights Bill will now extend Awaab’s Law to privately rented homes. This will ensure that tenants are empowered to challenge dangerous conditions and that all landlords must take swift action to make sure homes are safe. The measures in the bill will allow new requirements to be set requiring private rented sector landlords to address hazards, such as damp and mould, within a specified time period. If landlords do not comply, tenants will be able to bring enforcement action against them through the courts.
PROHIBITING RENTAL DISCRIMINATION
The Renters’ Rights Bill will take direct action to address rental discrimination practices in the private rented sector. It will address both overt discriminatory practices, such as ‘No DSS’ and ‘No Children’ adverts and situations where landlords or agents use other indirect practices in order to prevent someone entering into a tenancy. Landlords and agents will continue to have the final say on who they let their property to and can carry out referencing checks to make sure tenancies are sustainable for all parties. They will be able to do this based on affordability, but not on the basis the prospective tenant has children or is in receipt of benefits. All prospective tenants should be considered on an individual basis.
RENTAL BIDDING
The Renters Rights Bill introduces a prohibition on rental bidding , a practice where prospective tenants compete by offering higher-than-advertised rents to secure a property. Under this new rule, landlords and letting agents will be required to adhere strictly to the advertised rent price, preventing any bidding or price escalation that could disadvantage lower-income renters and drive up market rates unfairly. The legislation mandates that once a property is listed with a specified rental price, that price must remain consistent for all prospective tenants. Landlords and agents will be prohibited from soliciting or accepting offers above this listed amount. This rule applies throughout the application process, meaning that any tenant who meets the application criteria must be considered equally, without being outbid by others offering to pay more. Local authorities will have the power to enforce this prohibition, and landlords or agents who attempt to encourage or accept rental bidding could face fines or penalties. For landlords and agents, this will mean a shift toward equitable practices in tenant selection and a clearer, more consistent rental application process.
ENFORCEMENT AND INVESTIGATORY POWERS
The Renters Rights Bill enhances enforcement and investigative powers for local authorities to ensure that landlords comply fully with the new standards and protections. This emphasis on enforcement is designed to tackle persistent issues within the private rental sector, such as substandard housing conditions, rent violations, and illegal evictions. Under the Bill, local councils are granted additional resources and authority to actively investigate complaints, conduct unannounced inspections, and monitor compliance with safety regulations, rental pricing rules, and tenancy protections. With these expanded powers, councils can now impose substantial fines and penalties on landlords who fail to meet their obligations. Initial or minor non-compliance will incur a civil penalty of up to £7,000 and serious, persistent or repeat non-compliance a civil penalty of up to £40,000 , with the alternative of a criminal prosecution. Repeated non-compliance or severe breaches could result in harsher consequences, including prohibiting landlords from renting properties altogether. Local authorities will be incentivised to enforce these standards rigorously, with some fines potentially contributing to a fund for further housing enforcement efforts. These changes signify a shift toward proactive enforcement.
RENT REPAYMENT ORDERS
CURRENT: Susan Cope The Bill will also extend the period in which a tenant or local authority can apply for a rent repayment order after the offence from 12 to 24 months, making them easier for tenants and local authorities to pursue and helping prevent them from being timed out. The Bill will extend rent repayment orders to the offences of knowingly or recklessly misusing a possession ground, breach of a restriction on letting or marketing a property, continued tenancy reform breach after imposition of a financial penalty, continued breach of landlord redress scheme regulations after imposition of a financial penalty for this breach, provision of false information to the PRS Database when purporting to comply with PRS Database regulations and continued failure to register with the PRS Database. The maximum amount of rent a landlord can be ordered to pay will double from 12 to 24 months, increasing the deterrent effect of rent repayment orders and making them more appealing for tenants and local authorities to pursue. A rent repayment order is a mechanism through which, currently, a landlord who has committed an offence can be ordered to repay an amount of rent to the tenant or local authority. If a tenant believes their landlord has committed a listed offence, they can apply to the First- tier Tribunal for a rent repayment order. If the Tribunal is satisfied beyond reasonable doubt that the landlord has committed the offence, it can order the landlord to repay an amount of rent.
Annie Cope OPERATIONS DIRECTOR 01332 300190
THRIVING AMID CHANGE
The Renters Rights Bill is set to reshape the private rental sector, bringing with it changes that will affect how properties are let and managed across the UK. Yet, despite some uncertainties, this reform offers a unique opportunity for good, compliant landlords to thrive in an increasingly professional environment. With the right guidance and an expert team to support them, landlords can not only meet these new standards but also excel in a market that rewards dedication, quality, and care. At Cope & Co., we believe these changes open doors for responsible landlords to showcase their commitment to tenant satisfaction and property quality. As the Bill introduces new tenant protections and stricter regulations, landlords who prioritise compliance, transparency, and professionalism can set themselves apart, attracting quality tenants and securing a more stable rental income. Cope & Co. is ready to support landlords in achieving this. A New Era for High-Quality Landlords The Renters Rights Bill's core purpose is to enhance the rental experience by establishing higher standards in property management and tenant rights. While this might seem daunting at first, compliant landlords have nothing to fear and much to gain. Those landlords who embrace the changes are positioned to benefit as renters increasingly seek out reputable, reliable landlords. For Cope & Co., this is our bread and butter. Our team is dedicated to handling every detail, ensuring landlords remain ahead of these new requirements without hassle or worry. From detailed record-keeping to ensuring all safety and compliance measures are met, we take the burden off landlords, letting them focus on growing their portfolios with confidence. Embracing Compliance as a Competitive Edge Compliance is no longer just a legal necessity; it’s a mark of quality that savvy tenants look for. The new rules around rent increases, documentation and tenant notice periods mean that landlords can provide a fair, predictable rental experience. For landlords, this is an opportunity to distinguish themselves in a way that appeals to long-term, responsible tenants. Compliance with these new standards will create trust, reduce tenant turnover, and establish a reliable stream of rental income, even amidst changing economic conditions. At Cope & Co., we ensure all our landlords adhere seamlessly to these standards. By proactively managing tenant communication, maintenance schedules, and regulatory updates, we help our landlords stay ahead of the curve. Our service includes ongoing guidance on any new developments in legislation, so our clients are always informed and fully prepared.
YOUR PROPERTY PARTNER
Enforcement as an Assurance of Quality in the Market One of the key features of the Renters Rights Bill is the enhancement of local authorities' enforcement and investigatory powers. This shift is designed to create a healthier rental market, where those landlords who cut corners or ignore tenant welfare will face consequences. However, this regulatory focus can be seen as a protective measure, ensuring that they’re not undercut by those who fail to meet standards. Our team at Cope & Co. recognise that these heightened enforcement powers only reinforce the value of a professional, transparent approach to property management. We provide comprehensive, evidence-based documentation for each property we manage, ensuring our landlords are fully compliant and always one step ahead in meeting safety and tenant welfare standards. This means that Cope & Co. landlords can rest assured, knowing their investments are not only compliant but stand out as exemplary within the rental market. Cope & Co.: Your Partner in Navigating the Future In the midst of these reforms, Cope & Co. is uniquely positioned to guide landlords to success. We provide an unrivalled level of support, ensuring each of our clients not only complies with but benefits from the Renters Rights Bill. From proactive management strategies to comprehensive compliance services, we take the guesswork out of adapting to these new rules, allowing landlords to focus on what matters most: growing their investment. The Renters Rights Bill may be bringing change, but for good landlords committed to quality and transparency, it brings new potential too. Cope & Co. is here to ensure that you’re prepared, supported, and empowered to thrive in this evolving landscape. Let’s work together to make sure your properties, and your reputation as a landlord, are second to none.
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