Renters’ Rights Bill: Proposed Changes to the Private Rental Sector

We continue to monitor the progress of the Renters' Rights Bill, introduced by the Labour government, and the potential implications for landlords and tenants across the private rental sector.

Although the Bill is still progressing through Parliament and subject to change, the government has stated its intention to deliver the reforms within this parliamentary term. However, with detailed scrutiny in the House of Lords now scheduled for after Easter, and no confirmed implementation date, it's clear that the reforms are not moving as quickly as initially expected.

Despite this delay, the core proposals remain in place and signal significant reform for the sector. Here's what we know so far:

Abolition of Section 21 ‘No-Fault’ Evictions

A central feature of the Bill is the proposal to remove Section 21, which currently allows landlords to regain possession of their property without needing to provide a reason.

If passed, this would apply to both new and existing tenancies. Landlords would still be able to recover possession for legitimate reasons—such as selling the property or moving in themselves—but only once the tenant has been in situ for at least 12 months, and with a minimum of four months’ notice. This change aims to offer tenants greater long-term security.

Increased Flexibility for Tenants

The Bill proposes to end fixed-term tenancies and replace them with periodic tenancies by default. This means tenants could serve notice to leave at any point during their tenancy, including early on, provided they give the correct notice period.

This would offer tenants far more flexibility but may raise concerns for landlords about short-term occupancy and increased turnover.

Reforms to Rent Increases

Key changes include:

• Limiting rent increases to once every 12 months
• Requiring landlords to use a Section 13 notice, with two months’ notice to the tenant (instead of one month currently)
• Banning backdated rent increases
• Ensuring that if a tenant challenges an increase at tribunal, the rent cannot be raised above the landlord’s proposed amount

These measures aim to increase fairness and predictability for tenants, while also encouraging landlords to be transparent.

Pets in Rental Properties

Under the current proposal, landlords would no longer be able to unreasonably refuse a tenant’s request to keep a pet. Landlords must respond within 28 days (reduced from 42 days under earlier drafts), and refusals must be based on valid reasons.

The reforms also allow landlords to require tenants to have appropriate pet insurance to cover any damage caused.

Ban on Rental Bidding

The Bill seeks to ban rental bidding, where landlords or agents invite offers above the advertised rent. If implemented, this would make it an offence to encourage or accept offers higher than the listed price, with fines of up to £7,000 for breaches.

This proposal is intended to help create fairer access to housing, especially in high-demand areas.

Section 8 and Rent Arrears Threshold

Section 8 remains available for regaining possession, but with changes:

• If a landlord wishes to sell or move into the property, they must give four months’ notice, and only after the tenant has been in place for 12 months
• The rent arrears threshold for mandatory eviction under Ground 8 is proposed to rise from two months to three months' arrears

These updates aim to give tenants more breathing room, particularly during short-term financial hardship.

Extension of Awaab’s Law to Private Rentals

The Bill proposes extending Awaab’s Law—originally applied to social housing—to the private rented sector. This would require landlords to address serious health hazards such as mould and damp within specific timeframes, currently proposed as 14 calendar days from notification.

Further consultation is expected on how this law will be implemented across different housing types, but it represents a significant step toward higher health and safety standards in the private rental sector.

“Big Bang” Implementation Approach

The government has proposed a single-day implementation, where all changes would apply simultaneously to both new and existing tenancies. This would mean:

• All existing fixed-term tenancies would convert to periodic tenancies
• Section 21 would no longer be valid from that date
• Landlords must use the new system and new possession grounds moving forward

While the implementation date has not yet been confirmed, this approach is intended to create clarity and consistency across the sector.

What Happens Next?

Although the Renters’ Rights Bill continues to progress through Parliament, the timetable has slipped slightly. With scrutiny in the House of Lords not expected until after Easter 2025, it now seems unlikely that the reforms will be implemented before late 2025 at the earliest.

In the meantime, landlords and letting agents are encouraged to begin familiarising themselves with the proposed changes, reviewing tenancy agreements, and considering how their processes may need to adapt.

At Brown&Co, we are committed to supporting our clients throughout this transition. We will continue to provide timely updates and guidance as further detail is released.

For more information, please contact Josh Bailey, Senior Lettings Negotiator Associate, on 01603 629871 or email josh.bailey@brown-co.com