The Renters’ Rights Bill, described as the most significant increase to the rights of private renters in a generation, has received Royal Assent and passed into law.
The landmark legislation will abolish Section 21 ‘no fault’ evictions, which leave renters vulnerable to unfair treatment and insecure living conditions, and is set to transform landlord-tenant relations across England.
Section 21 evictions are at the core of the act – a shift the government says will empower tenants to challenge poor conditions and unreasonable rent increases without fear of retaliatory eviction.
The reforms will give renters the right to end tenancies with two months’ notice, while protecting legitimate landlord interests through strengthened repossession grounds that support continued investment in the sector.
‘Every family deserves the dignity of a safe and secure home’, said Prime Minister Keir Starmer.
“For too long, millions of renters have lived at the mercy of rogue landlords or insecure contracts, with their futures hanging in the balance. We’re putting an end to that.
“A secure home isn’t just bricks and mortar – it’s the foundation for opportunity, safety, and a better life. No child should grow up without one.”
Secretary of State Steve Reed said the passing of the bill was an historic moment, adding:
“We are finally ending the injustice overseen by previous governments that has left millions living in fear of losing their homes.
“For decades, the scales have been tipped against tenants. Now, we’re levelling the playing field between renters and landlords.
“We are tearing down the walls of injustice in the private rented sector and building a future where tenants are protected, respected and empowered.”
Renters can expect to see further reforms that will put an end to bidding wars and stop landlords from demanding more than one month’s rent upfront, the government said. Tenants will also be able to challenge unfair rent increases and ask to keep a pet, which landlords can’t refuse without a good reason.
The act will also tackle discrimination, banning landlords and agents from refusing tenants because they have children or receive benefits.
Local authority enforcement will be strengthened, bringing the Decent Homes Standard and Awaab’s Law into the private rented sector for the first time.
A new Private Rented Sector Ombudsman will also offer swift, binding resolutions to tenants’ complaints and will have powers to compel landlords to issue an apology, provide information, take remedial action and/or pay compensation.
While the passing of the legislation has been welcomed by organisations acting on behalf of tenants, David Hawkins, partner and head of real estate London at Norton Rose Fulbright, said landlords must be prepared to change. He explained:
“While the act introduces some welcome changes designed to protect renters, landlords will need to prepare for more operational complexity, including the risk of longer empty periods between tenants, and potential delays in raising rents due to tribunal processes. In particular, the loss of fixed-term tenancies and tenants gaining the right to leave with two months’ notice could make managing occupancy trickier and create uncertainty around income.
“Overall, the act boosts tenant protections and aims to improve standards across the sector. But keeping up with the new rules will take careful planning and active risk management.”
But according to data from Rightmove, less than half (43%) of the landlords surveyed by the property website said they were fully awware of the legislation and felt prepared for the changes. Over a fifth (21%) said they either didn’t know much about it, or weren’t prepared at all.
However, half of the landlords surveyed said they plan to maintain the size of their portfolio over the next 12 months, and 20% planned to increase it.
Colleen Babcock, Rightmove’s property expert, commented:
“The majority of landlords are looking to stay in market and even grow their portfolios which is positive for tenants, but there are clearly challenges for those looking to invest in rental property.
“Continued high mortgage costs mean that landlords need to make sure that the numbers still add up when investing in rental property. Landlords who were considering selling up over the next year told us that legislation changes were their biggest source of frustration. The government needs to consider this when setting its policy agenda over the next twelve months, otherwise we may see more landlords choose to leave the sector which will be to the detriment of tenants.”
Key measures in the new legislation include:
- Abolish Section 21 evictions and move to a simpler tenancy structure where all assured tenancies are periodic.
- Ensure possession grounds are fair to both parties, giving tenants more security, while ensuring landlords can recover their property when reasonable.
- Provide stronger protections against backdoor eviction by ensuring tenants are able to appeal excessive above-market rents which are purely designed to force them out.
- Introduce a new Private Rented Sector Landlord Ombudsman to provide quick, fair, impartial and binding resolution for tenants’ complaints about their landlord.
- Create a Private Rented Sector Database to help landlords understand their legal obligations and demonstrate compliance (giving good landlords confidence in their position), alongside providing better information to tenants to make informed decisions when entering into a tenancy agreement.
- 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 to the private rented sector to give renters safer, better value homes and remove the blight of poor-quality homes in local communities.
- Apply Awaab’s Law to the sector, setting clear legal expectations about the timeframes within which landlords in the private rented sector 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 – helping to ensure everyone is treated fairly when looking for a place to live.
- End the practice of rental bidding by prohibiting landlords and agents from asking for or accepting offers above the advertised rent. Landlords and agents will be required to publish an asking rent for their property and 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.
