Residential Landlords Beware: Update on Renters’ Rights Bill

The Renters’ (Reform) Bill promised sweeping changes to the private rental market but fell through with the dissolution of Parliament following the 2024 snap general election. In its place, the Labour government introduced the Renters’ Rights Bill (“the Bill”), announced during the 2024 King’s Speech. This new piece of legislation marks a turning point in landlord-tenant relations, particularly around possession rights and tenant protections.

Although the Bill has been introduced, landlords should note that Section 21 “no-fault” evictions currently remain legal and enforceable. Until the new law is enacted (most likely by early 2026) landlords can still serve Section 21 notices to obtain possession provided they comply with all procedural requirements.

As the Bill moves toward becoming law, landlords and tenants alike are asking: what will the rental landscape look like once Section 21 is abolished?

Regaining Possession: Landlords After Section 21

The most high-profile reform under the Bill is the proposed abolition of Section 21. Once repealed, landlords will no longer be able to end tenancies without giving a reason. Instead, all evictions must rely on the fault-based Section 8 of the Housing Act 1988, under which the grounds for possession are also being expanded.

To regain possession, landlords will need to demonstrate specific grounds, such as persistent rent arrears, anti-social behaviour, or the intention to sell or move into the property. If the tenant refuses to vacate, then the landlord must obtain an order for possession from the court, as is the case now.

The Government’s goal is to strike a balance between tenant security and landlord flexibility. Although the Bill and proposed reforms have been criticised for being very tenant friendly, landlords who are looking to sell or occupy their properties will still be able to do so but tenants may benefit from longer notice periods and stronger safeguards to their tenancies.

Tackling Rent Increases

Another impactful reform is the restriction on what has been described as “unreasonable” rent increases. The Bill will permit annual rent increases to market rates, but the landlord will be required to serve a “section 13” notice which sets out the amount of the new rent and gives the tenant at least 2 months’ notice before it takes effect.

A tenant will also be able to challenge any rent increase which they believe exceeds market rent at the First-tier Tribunal and the Tribunal will not be able to increase the rent any more than what the landlord has asked for, which is a change from the current law where the Tribunal is able to increase the rent to a higher level than requested by the landlord. In addition, there will be no backdating of rent increases and if the landlord’s higher rate of rent is agreed by the Tribunal, the new rent will be applicable from when the Tribunal makes its determination.

The purpose of the Bill is therefore to protect tenants from “backdoor evictions” by landlords increasing a tenant’s rent so drastically that they are forced to leave. Most scrupulous landlords would not undertake such methods and hopefully this does not lead to heavy increases in Tribunal cases if tenants decide to challenge any rent increase they may receive. Any influx of rent related disputes may impact on timescales in Tribunal cases and lead to delays.

A National Database

Under the Bill, landlords will be subject to greater oversight and transparency requirements, thanks to two major tools:

1. Private Rented Sector Ombudsman (“the Ombudsman”), which is intended to offer tenants a quick, impartial and legally binding way to resolve complaints without going to court. This mirrors systems already in place for social housing and estate agents.

All private landlords in England caught by the legislation and having assured or regulated tenancies will become required by law to join the Ombudsman. This will allow tenants to complain about a landlord and the Ombudsman will be able to compel landlords to either: apologise, provide further information, take remedial action and/or pay compensation. The idea behind this is to benefit both sides to resolve complaints in a quicker and cheaper manner. This is intended to be a free service for tenants but it will be interesting to see if this is actually viable.

2. National Landlord Database, where all landlords must register. This will become a central hub of accountability, allowing tenants to vet landlords and supporting local authorities in enforcement. Importantly, some possession grounds will only be available to landlords registered in the database.

While these may initially appear as administrative burdens, they are intended to professionalise the sector and give compliant landlords confidence in their position. Local councils will also be given greater powers to take action against landlords who do not join the Ombudsman. Civil penalties of up to £7,000 are being proposed for initial breaches but up to £40,000 or criminal prosecution if breaches continue or are repeated. Whether the local councils have the resources and capacity to investigate and enforce such breaches remains to be seen.

Decent Living Standards

The Bill introduces minimum housing standards in the private rented sector by applying the Decent Homes Standard. Landlords will be legally required to fix serious hazards within defined timeframes under the extension of “Awaab’s Law”. This covers serious hazards such as excess cold, excess heat, structural collapse, fire, electrical and hygiene issues.

A Right to Pets

The Bill also reinforces the Government’s intention to support tenants being able to own pets. The changes proposed are to ensure landlords do not unreasonably refuse a tenant’s request to have a pet. An example of a reasonable ground for a landlord’s refusal would be in situations where the head lease prohibits pets. To balance a tenant’s rights with the interest of the landlord, there has been a further recent amendment to the Bill that plans to allow landlords to take an additional deposit of three weeks rent for any damage caused by pets. Landlords are also able to recover any reasonable costs of taking out pet related damage insurance from the tenant.

Banning Discrimination

In another effort to improve fairness in the rental market, the Bill will aim to ban discrimination against tenants with children or those in receipt of benefits, codifying what has long been criticised as a grey area in letting practices.

Rental Bidding

The Bill plans to make the common practice of rental bidding wars illegal. Landlords and agents must advertise a defined asking rent and will be prohibited from accepting offers above it, which should create more transparency and predictability for prospective tenants.

Stronger Enforcement and Penalties

Local authorities will also be strengthened by way of new investigative tools, reporting obligations, and expanded use of civil penalties. Repeat offender landlords may be subject to enhanced rent repayment orders, with doubled penalties and new provisions applying to superior landlords, with fines up to £40,000 for serious or repeated non-compliance. As noted above, it will be interesting to see whether local authorities will have sufficient resources to be able to carry out enforcement of such penalties.

What Next?

The Bill is yet to pass into law but it has had its third reading in the House of Lords and will return to the House of Commons in September before becoming law at a later date. The direction forward is clear: a more regulated, transparent, and tenant-friendly rental system is on the way.

The proposed reforms aim to ensure landlords can still recover possession where necessary, while aiming to close loopholes that have left tenants vulnerable.

Demand for rental properties in cities like London is likely to remain high, however, it is more important than ever that landlords stay informed and seek expert advice to safeguard their investments and navigate the upcoming changes with confidence.

At Edwin Coe, we are well placed to assist landlords and tenants alike to guarantee a smooth transition. For further specific advice please contact partner Shams Rahman or any member of the Property Disputes team.