Everything you need to know about the Renters Rights Bill, but were too afraid to ask

As a member of ARLA Propertymark Bevan Residential are lucky enough to have a voice for any concerns in respect of the new Renters Rights Bill which is currently working its way through Parliament.

Propertymark have produced this fact sheet to help answer some of the questions that are being raised by landlords.  We hope this answers any queries that you may have.  We would be happy to chat through anything that is concerning you in respect of the bill and how this may affect any tenancies you might enter into going forward.  Always happy for a coffee and a chat!

Details of the Bill 

What is the timeline for the Bill to come out? The Bill has to work its way through parliament. This can be a lengthy process, especially for one with as much detail and content as the Renters Rights Bill. Firstly, the Bill must be debated in the House of Commons, here MPs will propose amendments, sit on committees, hear expert opinions and debate the merits and shortcomings of the proposed legislation. Secondly, the Bill will move to the House of Lords where they too will debate on it, discuss it at committees and propose amendments. Lastly the Bill will be finalised, with all amendments agreed, rejected or new ones proposed in both the House of Commons and the House of Lords. Then it will be sent for Royal Assent by the King. Currently, the UK Government is expecting the Bill to receive Royal Assent by the Summer 2025. However, the Parliamentary process can take months and, in some cases, years. Considering that the Renters (Reform) Bill took over 14 months to ultimately fail to pass, we do not expect to see the Renters Rights Bill to pass very quickly, which means that Propertymark will have time to work with MPs and present expert evidence to committees to help shape the Bill.

How would the legislation be rolled out? Would there be a transition stage for new tenancies? Will the legislation apply to existing tenancies? Guidance from the Ministry of Housing, Communities and Local Government (MHCLG) suggests that there will be a transition period to provide notice ahead of implementation of the different elements of the reforms.  

Changes to tenancies 

Does the legislation apply to licences, contractual agreements and commercial tenancies? There is no mention of these alternate types of tenancy in the legislation, Propertymark will seek to gain clarity from the UK Government on these points.

How much notice does the tenant have to give and what date can they end the tenancy on? When ending a tenancy, a tenant must give at least two months’ notice. They will not be able to end a tenancy part way through a rental period, meaning that the notice must end on the last day of the rental period, two months in advance. The tenant will be liable for rent until the end of the notice period.

Rent increases 

Will a Section 13 notice always be required for a rent increase? The Bill proposes that using a Section 13 notice will be the only way to request a rent increase.

How is market rent calculated? The guidance suggests that market rent or market prices will be calculated based on the rent that could be achieved if the property was brought back to the market. Tenants will be able to challenge rent increases at the First-tier Tribunal who will have the power to set the market rate for the property.

Grounds for eviction and notices 

What would happen if the landlord doesn’t sell the property after issuing a Ground 1 or 1A notice? The Bill proposes a news ground for eviction which enable landlords to evict tenants with the landlord or their family plan to occupy the property or sell it. As it stands, the legislation does not prevent landlords from reletting the property for a certain number of months after issuing a Ground 1 or 1A notice, if the property is not sold or occupied. However, there will be requirements to prove that the property is being sold, such as instructing an estate agent or solicitor. Additionally, landlords cannot issue a Ground 1 or 1A notice within the first 12 months of the tenancy. If it is found that the landlord never intended to sell or occupy the property, the landlord will be liable for an offence under the new rules and could lead to prosecution or a fine of up to £40,000.

Does the 12 months protection for Ground 1 and 1A notices include protections from notices? No, landlords can serve the required 4 months’ notice on month 8 of the tenancy, allowing for tenants to be evicted from the property when the 12-month protection period is over.

What form will I need to serve notice? You will no longer be able to use Form 6a to serve a notice to quit. Currently, Form 3 is the correct form to serve notice under one of the Section 8 grounds for eviction. We expect that the UK Government will look to amend this form to include the new grounds.

Which grounds for eviction will be mandatory and which will be discretionary? Please see the current UK Government guidance on the current Bill: https://www.gov.uk/government/publications/guide-to-the-renters-rights-bill/

Would I have to take a tenant to court to evict under a Section 8 notice? No, not necessarily. As with the current eviction process, if a landlord or agent serves notice on a tenant and the tenant moves out by the end of the notice period then there is no further action. A landlord only needs to apply to court for an order for possession if the tenant refuses to leave. A landlord is more likely to need to apply for an order for possession for grounds relating to rent arrears or anti-social behaviour due to the nature of the reason, they may also want to apply to court in order to claim compensation for rent arrears or other costs.

What are the grounds for eviction for tied accommodation, such as properties used to house farm workers? New grounds have been proposed to ensure that a landlord can repossess their property for specific tenancy requirements, such as if the property is required for use as part of employment (i.e. accommodation tied to a workplace). propertymark.co.uk 3 of 8 These grounds are:

• Ground 5, Possession for occupation by ministers of religion

• Ground 5A, Possession for occupation by agricultural worker

• Ground 5B, Possession for occupation by person who meets employment requirements

• Ground 5C, Possession where tenant no longer meets employment requirements

• Ground 5D, Possession for end of employment requirements (social landlord)

• Ground 5E, Possession for occupation as supported accommodation

• Ground 5F, Possession of dwelling-house occupied as supported accommodation (support no longer need, funding withdrawn, limited time period for support requirement etc)

• Ground 5G, Possession for tenancy granted for homelessness duty

• Ground 5H, Occupation as ‘stepping stone accommodation’

Landlords’ ombudsman service 

When is the landlords’ ombudsman service going to be introduced? MHCLG is aiming to establish the landlords’ ombudsman service shortly after the Bill receives Royal Assent. Landlords will receive notice to sign up to the service ahead of time.

If the property is managed by an agent who is a member of a redress scheme, does the landlord also have to be a member of a scheme? Yes, the proposals state that it will be compulsory for all landlords to be members of a redress scheme.

Will the landlords’ ombudsman be the same as the agents’ ombudsman? Will the same scheme cover both? No, the proposals are for a scheme solely for landlords. This is to run alongside existing redress schemes for property management, private rental letting and estate agency work, new homes, and for social housing residents.

How will the landlords’ ombudsman work? It is understood that the scheme will operate in a similar way to agents’ ombudsmen, where tenants will be able to raise complaints against their landlord which the ombudsman will investigate. Landlords will not be able to raise complaints against their tenants.

Will there be a cost to landlords to join a redress scheme? Yes. As with the agents’ redress schemes there will be a charge for landlords to sign up. We do not know the details of this yet or whether these fees will be tax deductible, but it is understood to be an annual fee per property.

Would local selective licensing schemes still exist? Currently there are no plans to abolish selective licensing schemes as part of the Bill.

Whose responsibility will it be to check if a landlord has signed up for the ombudsman service? A letting agent will not be allowed to market a property where the landlord is not a member of the ombudsman service. However, it is the responsibility of the local housing authority to investigate whether a landlord is a member of a scheme or not.

Private rented sector database 

Will the database be publicly viewable? How will this work with GDPR laws? Yes, at least some of the information will be publicly available, this will be set out in future regulations, but it is understood the public information will be related to property standards. The information available will be limited to information that is necessary and proportionate for the tenant or prospective tenant to make an informed decision about renting. It will be expected that letting agents check that a landlord and the prospective property have public entries in the database. It is expected that publicly available information will include landlord name, details of others involved in the ownership or management of the property, details of any relevant unspent offences, financial penalties or regulatory notices or decisions held by the landlord, and details relating to the dwelling, including address and information relating to property standards. According to the Bill, sensitive information related to an offence will be subject to rigorous assessment to determine its compatibility with landlords’ privacy rights under Data Protection laws.

Will joint landlords and those who own properties under a company name have to register as individuals? It is likely that joint landlords and companies will have to register as individuals and they will be linked to the entries for properties.

Will there be a fee to register an entry on the Private Rented Sector Database? Yes, it is proposed that there will be a fee for the creation or renewal of an entry to the database. The details of this will be set out in future regulations. There will also be penalties such as late fees if the landlord is not registered on the database within the set deadline or in the future if they do not re-register on time.

How does the proposed Database differ from the Property Portal? The Database will set the groundwork for the Property Portal which will contain additional information such as legislative requirements and duties for agents, landlords and tenants. The Database primarily focuses on landlord details and their history of compliance. It therefore will replace the Database of Rogue Landlords.

Will the Database and Property Portal put an end to local authority selective and additional licensing schemes? Currently, the UK Government has no plans to end selective licensing, as they believe that the Database will be able to support local authorities to deliver their licensing schemes. However, Propertymark feels that the Database and Property Portal achieve the same purpose as local licensing schemes, and we will be campaigning for this to be reviewed.

Rental discrimination 

Will no DSS discrimination impact my ability to deny a tenant due to affordability? No, the Bill only prevents blanket discrimination based on if the prospective tenant has children or is in receipt of benefits. For example, no DSS adverts will be banned but agents and landlords will still have the final say on which tenant their property will be let to.

How can I prevent tenants from taking legal action against a decision not to let the property to them? The UK Government is emphasising that agents and landlords consider individual circumstances when letting out to tenants with children or who are benefits recipients. When explaining why applications to rent are denied, agents and landlords can point to inappropriate properties such as those with few bedrooms or which are considerably more expensive than what a tenant could receive with benefits. This could be clearly stated in writing in order to avoid potential legal challenges.

How will this measure impact existing mortgage/lease contracts that state I can’t let those in receipt of benefits or with children? When the Bill comes into effect, any terms in mortgages or lease agreements with superior landlords that place restrictions on those in receipt of benefits or who have children will have no effect. This will mean that a landlord cannot be considered in breach of their contract or superior landlord agreement.

How will this measure impact existing insurance contracts that state I can’t let those in receipt of benefits or with children? Existing insurance contracts will be exempt from the measures outlined in the Bill until they come to an end or are renewed. The Bill will make any restrictive terms for new insurance contracts to have no effect.

Rental bidding wars 

How does the UK Government intend to stop bidding wars? Once enacted, the Bill will prevent agents and landlords from requesting or accepting anything higher than the rent on the property listing, preventing tenants from bidding for properties.

When will this be implemented? This is not expected to be implemented as soon as the Bill receives Royal Assent. It is expected that some time will pass to allow for all parties involved to be familiar with how the rules around ending bidding wars are implemented.

What will be the punishment for breaching the new law? Local councils will have the power to issue fines of up to £7,000 to anyone directly or indirectly involved with any breach of the legislation.

What is stopping landlords from relisting properties at a higher rent? The Bill will enable tenants to reach out to their local council to record breaches in the new laws. It is possible but not confirmed that tenants could report that properties they expressed an interest in were taken off the market, only to be reintroduced at a higher rent.

Tenants’ right to have pets 

What are the reasons a landlord can reasonably refuse a pet? There are no details on what a reasonable reason would be to refuse a pet, other than one: if a superior landlord refuses permission for a pet at the property or if it would breach the agreement with the superior landlord. Other reasons might include the size of the property, the size of the pet, the number of pets, the type of pet. We would expect to see more detail on these in future regulations. More detail will be provided in future UK Government Guidance. The landlord will be able to request more information about the pet and will have a set number of days to give or refuse consent in writing.

If the tenant gets a pet which the landlord had reasonably refused or without the landlord’s consent would this be grounds for eviction under breaking the terms of the tenancy agreement? If the contract has a clause that prevents the tenant from owning a pet if the landlord’s refusal has been found to be reasonable, either by the courts or through the new Private Rented Sector Ombudsman, then this would be grounds for eviction. However, since breaking the terms of the tenancy agreement is still a discretionary clause, the landlord will still have to go through the legal process of evicting the tenant.

What would happen if the landlord does refuse a pet unreasonably? The tenant could challenge this in court or through the landlord ombudsman and it may be ordered that the pet is allowed, if reasonable to do so.

Will landlords be able to request a pet deposit? No, the landlord will not be allowed to request an additional deposit for a pet. The Bill will amend the Tenant Fees Act 2019 so that landlords can require pet insurance to cover any damage to their property.

What would happen if a tenant took out pet insurance but then cancelled it once the pet had been agreed? The Bill states that, if agreed, the tenant must maintain insurance that covers the risk of pet damage for the period of time that the pet is at the property. This is an implied term of all tenancy agreements.

How would a landlord claim on a tenant’s pet insurance? Does all pet insurance cover damage to property or would the tenant have to take out a special premium? The exact process and guidance on claiming insurance has not been produced. We would recommend agents and landlords to take out their own insurance specifically related to contents cover from pet damage. That way, agents and landlords can have control over the specific coverage and make claims when damage occurs.

Would a landlord be able to take out pet insurance and recharge the tenant for this? Yes, the Bill allows for the tenant agreeing to pay reasonable cost to the landlord for maintaining insurance that covers the risk of pet damage for the time that the pet is at the property. This could also include any excess payable by the landlord under the insurance policy.

What happens if the headlease/ superior landlord says pets are not allowed? The Bill states that the landlord must seek consent of the superior landlord in order to give consent to their tenant. This means that a superior landlord may refuse a pet.

Decent Homes Standard (dhs) 

Which homes will the Decent Homes Standard apply to? The Decent Homes Standard will initially apply to all homes let under assured tenancies and privately rented supported housing occupied under tenancies and licenses. The UK Government has the power to expand the DHS to additional types of tenancies and licenses if required.

Will the DHS differ to the existing standard for social housing? It is likely to. Under the previous UK Government, there was significant consultation on how the DHS could work for the private rented sector. It is likely that the current UK Government will take lessons from the previous consultations and may look to introduce some of their own. However, it is impossible to say at this stage exactly what the DHS will look like.

What will be the consequences for failing to meet the DHS? Initially, local councils will have the power to issue an improvement notice to the landlord informing them that they need to rectify any breach in the DHS. If the landlord fails to meet the DHS within an allotted time frame, they could be subject to a £7,000 fine or potential rent repayment order.

Awaab’s Law 

What is Awaab’s Law and how will it impact the PRS? Awaab’s Law currently requires landlords of social housing to investigate issues raised by tenants, such as damp and mould, and begin repairs if required. The Bill will introduce this requirement into the PRS.

What will the timescales be to investigate and make appropriate repairs? Currently, the timescales within the social rented sector are two weeks to investigate issues and seven days to begin repairs. However, the specific timescales for the PRS have yet to be included within the Bill and there may be different timescales depending on the severity of the issue reported by tenants. The UK Government will consult on any changes between the way Awaab’s law is implemented within the PRS and the social sector.

What would be the consequences of failing to respond to tenants’ concerns? Landlords would likely face orders from local authorities or courts to take the necessary action, with consequences for failing to take action, and or financial compensation for tenants.

Enforcement and investigatory powers 

What is the new maximum penalty for breaching PRS legislation? Initial and minor offences will incur a maximum penalty of £7000 while severe and repeat offences will incur a maximum penalty of £40,000.

What will the new local authority investigatory powers look like? The powers are modelled on the powers local trading standards have. These include being able to enter business or residential premises in limited circumstances. Local authorities will also have the ability to

What offences will local authorities be able to hold landlords to account for? Local authorities will be able to issue penalties for landlords who do not comply with the Bill and those who evict their tenants illegally.