Renters Rights Bill: Your full guide

The Labour Renters Rights Bill is currently progressing through Parliament and is likely to become law in spring or summer this year. It’s the most significant piece of legislation affecting the private rental sector since the 1988 Housing Act and will have an impact on landlords, tenants, lettings agents and estate agencies.

So, what’s in the Bill, and how will the proposed changes affect landlords?

What is the Renters Rights Bill 2024?

The Bill aims to improve the private rental sector for tenants while still making sure landlords remain in control of their property portfolios.

The current Bill originated under the Conservative government and was initially called the Renters’ Reform Bill. Work was being done on the earlier version of the Bill when the 2024 general election was called, and the Labour government have now introduced their own version: the Renters’ Rights Bill.

The new Bill had its second reading in the House of Lords at the start of February and will now move to the Committee Stage, where it will be examined in detail and any amendments will be discussed in depth before the Bill becomes law in a few months’ time.

While the Bill intends to reform the rental sector and improve tenants’ rights, it’s important that landlords know there’s no need to worry about the upcoming changes. There will certainly be actions you’ll need to take in order to comply with the new legislation, but responsible landlords have no cause for concern. Our lettings team here at Bacon & Co will be on hand with expert help and advice to guide you through the changes.

Top 10 Key Points of the Renters’ Rights Bill

Here are the main changes proposed by the Renters’ Rights Bill:

1. Abolition of Section 21 notices. The bill will end Section 21 ‘no-fault’ evictions. Landlords will need to provide a valid reason for ending a tenancy, such as selling the property or moving in themselves
2. Section 8 ‘Grounds For Possession’ expanded. To counteract any challenges raised by the removal of Section 21 notices, the Bill is giving landlords more options for taking back possession of their property – but with limits. The main changes are:
   • Landlord or their family moving in: Expanded to include wider family members, with a 12-month tenancy requirement
   • Selling the property: New ground allowing possession if the landlord intends to sell, after 12 months of tenancy
   • Rent arrears: The threshold has increased from 2 to 3 months’ arrears, with the notice period extended from 2 to 4 weeks
3. Abolition of Assured Shorthold Tenancies (ASTs). All tenancies will become periodic, eliminating fixed-term contracts. Tenants will have the flexibility to end their tenancy with two months’ notice at any time
4. Rent increase limits. Landlords will only be allowed to increase rent once a year, and any increase must reflect market rates. Tenants will have the right to challenge unfair rent increases through a tribunal system
5. Property standards. All rental properties must comply with the Decent Homes Standard – previously just applicable to social housing, the standard is being reviewed and will apply to the private rental sector when this Bill becomes law. Rental properties must be in a reasonable state of repair, with efficient heating and hot water systems and adequate thermal and sound insulation 
6. New landlord database. A new national landlord register, known as the Private Rented Sector Database, will be created. Landlords must register their properties, improving accountability and helping local authorities with regulation enforcement 
7. New landlord ombudsman service. This new service aims to help resolve disputes quickly and relatively easily, to prevent issues escalating to court proceedings. All private landlords will also be required to join the ombudsman service before they market a property for letting 
8. End of ban on pets. Landlords must consider pet requests and can only refuse with reasonable grounds. However, landlords can request pet insurance to cover potential damage 
9. Ban on rental bidding wars. Landlords and agents won’t be able to accept offers from prospective tenants that are higher than the advertised rent / cannot ask for more than one month’s rent in advance
10. Strengthened Rent Repayment Orders. The bill enhances the scope of Rent Repayment Orders (RROs), allowing tenants to claim back rent paid to landlords who have committed certain housing offences. The maximum amount claimable will increase from 12 to 24 months’ rent

How to prepare for the Renters’ Rights Bill

As the Bill won’t become law until spring this year at the earliest, the changes are far from finalised. However, there are actions you can take now to get ahead and put yourself in a good position for when the law does come into effect.

• Familiarise yourself with the Bill and its proposed changes. Keep up to date with the Bill’s progress and any guidance issued by the government. Understanding how your responsibilities as a landlord may change will help you prepare for any actions you need to take in order to comply with the new legislation
• Ensure your property is the best it can be. Now’s the time to complete any repairs or renovations and ensure your property complies with the Decent Homes Standard
• Review your financial strategy. Consider bringing rents in line with market trends to prepare for potential rising costs associated with the new regulations. If you haven’t increased rents recently, consider doing this now to avoid being limited in the future when only fixed yearly increases are allowed
• Consider rent protection and legal expenses. If you don’t have it in place already, rent protection is a worthwhile investment. We can arrange this for you for £290 per annum, which could save you thousands should your tenant default or refuse to vacate after being served notice
• Select your tenants carefully. Having responsible tenants who pay the rent on time, take care of your property and communicate with you is the best way to reduce the risk of problems and disputes. Careful vetting procedures will help you select the best tenants for your property, and our landlord services are designed to support you with this. Here at Bacon Micawber Lettings, our tenant vetting procedures are rigorous and thorough, and this will be more important than ever once the changes come into effect

What is the history behind the Renters’ Rights Bill and do we need it?

Figures from the Office for National Statistics (ONS) show the average UK private rents increased by 9.0% in the 12 months to December 2024[1] which contributed to a huge increase in homelessness. There were over 320,000 households assessed as owed a homelessness duty in 2023-24[2] with a similar trend having shown for many previous years. The Conservatives first put their Renters’ Reform Bill to the House of Commons in 2019, with the main aim to support the 11 million renters by abolishing the ‘no-fault eviction’.

We’re proud to say that all our landlords are fair and considerate to their tenants, but unfortunately there are others who have had a negative impact and contributed to the level of homelessness, causing the charity Shelter to release this thought-provoking advertising campaign. Although shown in an amusing manner, the undertones are serious and based on real-life scenarios of rising rents, suggestions of alternative methods of payment, demands to pay several months’ rent in advance, discrimination due to having a family, and living in homes with extremely low standards.   All of these matters are being addressed in the Bill.

Not only do landlords have a duty of care, but so do letting agents – and we will do our bit to ensure tenants are treated fairly and landlords are informed and supported on their rights and responsibilities.

Helping you through the Renters’ Rights Bill changes

With us, you’re in safe hands. With a wealth of in-depth local knowledge and extensive experience in lettings, we guarantee a personalised service tailored to meet your specific needs as a landlord. Whatever level of support you need, from a tenant-introduction only service to a full management package, we’re here to help you get the very best from your rental property portfolio. So, for guidance and support in preparing for the Renters’ Rights Bill, contact us today.

[1] Private rent and house prices, UK: January 2025

[2] Statutory homelessness in England: financial year 2023-24