Landmark Renters’ Rights Bill — Implications for Private Residential Landlords

Anna Clarke is a Chartered Legal Executive in our Residential Conveyancing Department. You can contact her by emailing anna.clarke@stephenrimmer.com or by calling 01323 644222

The Renters' Rights Bill, introduced by the government, signals a significant shift in the private rented sector. Designed to protect tenants and balance the relationship between renters and landlords, the Bill brings new regulations that will greatly impact how rental properties are managed.

Challenges for Landlords in the Face of New Legislation

Private residential landlords, already dealing with recent tax changes and increased regulatory scrutiny, may find this new legislative framework a decisive factor in whether they remain in the sector. This is particularly relevant for those with one or two properties, as well as so-called ‘accidental landlords,’ who rent out their homes while away for work or other reasons.

End of 'No-Fault' Evictions and Tenant Security

One of the most significant changes proposed is the ban on ‘no-fault’ evictions under Section 21 of the Housing Act 1988. Currently, landlords can evict tenants with two months' notice without providing a reason, but this will no longer be allowed. The ban aims to offer tenants greater security by eliminating this route to repossession.

The removal of Section 21 will have a major impact on landlords who rely on this method to regain possession of properties for personal or financial reasons. Once the law is in place, tenants will have a 12-month protected period at the start of a tenancy, during which time landlords cannot evict them to move in or sell the property. After this protection ends, landlords will be required to give four months’ notice instead of the current two months, giving tenants more time to find alternative accommodation.

Awaab’s Law: Protecting Tenants from Unsafe Living Conditions

The Bill also introduces ‘Awaab’s Law’ into the private rented sector, named after Awaab Ishak, a two-year-old boy who tragically died in 2020 after prolonged exposure to mould in a social housing flat. His death highlighted critical failures in addressing hazardous living conditions, sparking public outrage and demands for reform.

Under Awaab’s Law, private landlords will be required to address health hazards like mould and damp within specific timelines. Landlords must investigate hazards within 14 days and complete necessary repairs within seven days. For emergency repairs, landlords will have just 24 hours to act. With 21% of private rentals classified as “non-decent” by the government, landlords managing older properties face tighter scrutiny and timelines for repairs. Failure to comply could lead to significant penalties.

Limitations on Rent Increases and Tenant Rights

Under the new Bill, landlords will only be allowed one rent increase per year, set at the market rate, and mid-tenancy rent hikes will be banned. This removes the flexibility landlords previously had to adjust rents in line with market conditions.

The Bill also expands tenants' rights regarding pet ownership, preventing landlords from imposing blanket bans unless they can present a compelling reason for refusal. Additionally, the Bill addresses bidding wars on rental properties by requiring landlords and letting agents to publish rent prices upfront and prohibiting offers above the listed price.

Impact on the Rental Market

The new regulations are arriving at a challenging time for private landlords, who have faced numerous reforms in recent years. Changes such as higher stamp duty for second and further property purchases, reductions in mortgage interest tax relief, and more stringent energy efficiency standards have already squeezed landlord profitability. For those operating with tight margins or in areas with lower rental yields, this Bill may prompt a reconsideration of their position in the market.

Landlords committed to maintaining high standards may welcome these reforms, as they could help eliminate unfair competition from sub-standard rentals. However, the ongoing reduction in the supply of rental properties, combined with these new regulations, could further intensify the already high demand for housing.

Note: This content provides general information on current legal issues and is not intended to serve as legal advice.