Are you ready for the Renters' Rights Bill?
April 2025
2025 will see the Renters Right Bill being rolled out across the UK, but what will this mean for landlords? Amy Davidson, Associate and Senior Lettings Manager explains.
On 4th February 2025 the Bill successfully passed its Second Reading in the House of Lords. The Committee Stage, Report Stage and Third Reading dates are yet to be disclosed, but current predictions are that the Bill will be introduced in the latter part of the year.
While the main points of the Bill will remain in place, other items on the Bill have not been amended during the early readings through the House of Commons. However, there is still the opportunity for this to happen during the final stages in the House of Lords.
Here, we will be considering a brief overview of what we understand will be part of the Bill, however it must be taken into account that things may well change as the Bill progresses through subsequent stages. So, what do we know so far and what are the main changes?
Assured Shorthold Tenancy (AST)
Assured Shorthold Tenancies will no longer exist. All tenancies will start as periodic with no fixed term in place. The Government will be drawing up a new model tenancy but as yet, the wording of this document has not been released.
Abolishment of The Section 21 Notice (Form 6a)
This is one of the key points that we understand will not be changed and Section 21 Notices will be abolished, and the current Section 8 Notice will be updated with new mandatory and discretionary grounds. It is worth noting that should a landlord/agent have to provide their tenant/s with notice, supporting evidence will be required whether issuing under mandatory or discretionary grounds.
Updates to Notice Periods
Under the new regulations, landlords will be required to provide their tenants with four months’ notice rather than the current two months. Tenants will be required to serve two months’ notice.
Rent Arrears
Should a tenant fall into arrears, a landlord/agent will not be able to serve four weeks’ notice (extended from two weeks) until three months’ rent is outstanding – this is an increase from the current two months.
Selling/Moving In
Should a landlord decide to sell their property, or should they require possession in order to take occupation themselves, the new Ground 1 or 1A form will need to be issued. However, this notice cannot be served within the first 12 months from the tenancy start date. A landlord/agent will not be able to re-let the property for a further 12 months (known as the ‘restricted period’) from the date of when vacant possession has been obtained. It is worth noting that a landlord/agent will be providing four months’ notice and not the current two months, and should the property be advertised within the ‘restricted period’ there could be a penalty up to £7,000.
Compliance
Landlords will be required to register their property on a new Private Rented Sector Database. There will be fees to join but as yet, the amount has not been disclosed. The landlord/agent will not be able to market the property until this process has been completed. Fines will be put in place should a landlord fail to register their property - up to £7,000 for the first offence and up to £40,000 for second or subsequent offences.
Pets
Landlords and agents will not be able to unreasonably withhold consent should a tenant put in a written request to have a pet. Tenants will be able to challenge refusals with the first-tier tribunal. However, there are plans to make it lawful for pet insurance to be in place to cover damages. There will also be situations where it would be reasonable to refuse a pet – for instance, a top floor flat with no lift or garden would not be suitable for a dog. This is something landlords need to discuss with their agent when considering renting out their property.
Rent in Advance
This change will mean that landlords and agents will only be able to request or accept up to one months’ rent in advance.
There is obviously a lot more to look at within the Bill. This is a brief overview of what we know will be coming in at some point in 2025. It is vital that landlords who manage their own properties are aware of the Bill as fines will be implemented should you fail to comply with the new regulations.
If you are thinking of renting, or you are looking for an agent to take over the management of your property or property portfolio, find out more about our landlord services or contact your local GTH office as now is the time to be talking about future plans and how to navigate your way through this new world with our experienced and knowledgeable team.
On 4th February 2025 the Bill successfully passed its Second Reading in the House of Lords. The Committee Stage, Report Stage and Third Reading dates are yet to be disclosed, but current predictions are that the Bill will be introduced in the latter part of the year.
While the main points of the Bill will remain in place, other items on the Bill have not been amended during the early readings through the House of Commons. However, there is still the opportunity for this to happen during the final stages in the House of Lords.
Here, we will be considering a brief overview of what we understand will be part of the Bill, however it must be taken into account that things may well change as the Bill progresses through subsequent stages. So, what do we know so far and what are the main changes?
Assured Shorthold Tenancy (AST)
Assured Shorthold Tenancies will no longer exist. All tenancies will start as periodic with no fixed term in place. The Government will be drawing up a new model tenancy but as yet, the wording of this document has not been released.
Abolishment of The Section 21 Notice (Form 6a)
This is one of the key points that we understand will not be changed and Section 21 Notices will be abolished, and the current Section 8 Notice will be updated with new mandatory and discretionary grounds. It is worth noting that should a landlord/agent have to provide their tenant/s with notice, supporting evidence will be required whether issuing under mandatory or discretionary grounds.
Updates to Notice Periods
Under the new regulations, landlords will be required to provide their tenants with four months’ notice rather than the current two months. Tenants will be required to serve two months’ notice.
Rent Arrears
Should a tenant fall into arrears, a landlord/agent will not be able to serve four weeks’ notice (extended from two weeks) until three months’ rent is outstanding – this is an increase from the current two months.
Selling/Moving In
Should a landlord decide to sell their property, or should they require possession in order to take occupation themselves, the new Ground 1 or 1A form will need to be issued. However, this notice cannot be served within the first 12 months from the tenancy start date. A landlord/agent will not be able to re-let the property for a further 12 months (known as the ‘restricted period’) from the date of when vacant possession has been obtained. It is worth noting that a landlord/agent will be providing four months’ notice and not the current two months, and should the property be advertised within the ‘restricted period’ there could be a penalty up to £7,000.
Compliance
Landlords will be required to register their property on a new Private Rented Sector Database. There will be fees to join but as yet, the amount has not been disclosed. The landlord/agent will not be able to market the property until this process has been completed. Fines will be put in place should a landlord fail to register their property - up to £7,000 for the first offence and up to £40,000 for second or subsequent offences.
Pets
Landlords and agents will not be able to unreasonably withhold consent should a tenant put in a written request to have a pet. Tenants will be able to challenge refusals with the first-tier tribunal. However, there are plans to make it lawful for pet insurance to be in place to cover damages. There will also be situations where it would be reasonable to refuse a pet – for instance, a top floor flat with no lift or garden would not be suitable for a dog. This is something landlords need to discuss with their agent when considering renting out their property.
Rent in Advance
This change will mean that landlords and agents will only be able to request or accept up to one months’ rent in advance.
There is obviously a lot more to look at within the Bill. This is a brief overview of what we know will be coming in at some point in 2025. It is vital that landlords who manage their own properties are aware of the Bill as fines will be implemented should you fail to comply with the new regulations.
If you are thinking of renting, or you are looking for an agent to take over the management of your property or property portfolio, find out more about our landlord services or contact your local GTH office as now is the time to be talking about future plans and how to navigate your way through this new world with our experienced and knowledgeable team.