Landmark Changes Ahead for Landlords, Tenants, and Letting Agents

The long-awaited Renters Rights Bill is set to bring some of the biggest changes to residential tenancies in England in decades. As a solicitor in the Litigation team, I’ve been closely reviewing what these changes mean for landlords, tenants, and letting agents.

The key changes are:

Goodbye to Section 21 ‘No-Fault’ Evictions

Arguably, the biggest change is that landlords will no longer be able to evict tenants without providing specific grounds under section 8, i.e. rent arrears, anti-social behaviour, or a need to sell or move into the property themselves. For tenants, this should offer greater housing stability, but, for landlords, it signals a need to ensure compliance with the correct grounds and processes from the outset.

Revised Section 8 Grounds

Section 8 will now be the main route for repossession. While many existing grounds remain, some have been updated. Notably, the mandatory ground for rent arrears is changing and will now require tenants to have been in at least four months of arrears (not two, as previously) at the time of the court hearing. This means landlords may face longer delays and greater arrears before being able to regain possession of their property.

All Tenancies to Become Periodic

The new bill intends to make fixed-term Assured Shorthold Tenancies (ASTs) a thing of the past, meaning all tenancy agreements will change into rolling, periodic contracts. Tenants will now be able to leave with just two months’ notice, providing them with greater flexibility. Landlords, however, lose some of the certainty and stability that fixed-term tenancies once offered.

Tighter Rules on Rent Increases

Landlords will still be able to review rent annually, but they will need to provide two months’ notice when doing so. Tenants will have the right to challenge increases at a First Tier Tribunal if they believe the new rent figure is excessive; however, they must do this before the start date of the proposed new rent.

Limits on Upfront Rent

The new bill will now prohibit landlords and agents from demanding more than one month’s rent in advance, creating a fairer and more affordable renting market for prospective renters.

Other changes to note:

• The bill promotes more inclusive letting, making it a legal offence to discriminate against tenants with children or those receiving benefits, although landlords will still retain their right to pick applicants based on other legitimate criteria (e.g., references and affordability checks)
• Landlords and agents will also be restricted from accepting offers above the advertised rent from bidders, a practice that’s become increasingly common in competitive markets.
• The bill introduces a legal right for tenants to request a pet, which landlords can only refuse on reasonable grounds.

Preparing for the changes

As the Bill continues to make its way through Parliament, landlords, tenants and letting agents should monitor developments and prepare for its implementation, as local authorities will be given stronger enforcement powers for non-compliance, resulting in serious fines.

Contact our Litigation team [email protected] or 01732 770660. The team can assist clients with landlord and tenant disputes and offer advice to landlords and letting agents on their legal responsibilities, and tenants on their renters’ rights.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published. We do not accept responsibility or liability for any actions taken based on the information in this article.