What is the Renters’ Rights Bill?
The Renters’ Rights Bill – formerly known as the Renters’ (Reform) Bill – was originally introduced by the Conservative Government in May 2023 and has since been adopted and renamed by the current Labour Government. It aims to significantly reshape the private rented sector across England, including key areas such as Chelsea, Kensington, Knightsbridge, and the South West London boroughs where Wilfords operates.
The Bill is now moving through the House of Lords and is expected to become law by summer 2025.
Key Proposals in the Renters’ Rights Bill
1. Abolition of Section 21 Notices
One of the most significant changes will be the removal of Section 21, commonly referred to as “no-fault evictions.” Landlords will no longer be able to terminate a tenancy without specific grounds. Instead, possession will require a valid Section 8 notice under clearly defined circumstances, such as selling a property or moving in a family member.
Wilfords will assist landlords in understanding and applying the revised grounds appropriately – especially important for those managing high-value property portfolios with complex tenancy arrangements.
2. End of Fixed-Term Tenancies
From the Bill’s commencement date, Assured Shorthold Tenancies (ASTs) will be abolished. All existing and new tenancies will convert to ‘periodic tenancies’, meaning no fixed end date. Tenants will be required to give two months’ notice, but landlords will need a valid Section 8 reason to regain possession.
3. Rent Increases – A New Framework
Rent increases will be limited to once annually and must reflect the open market rate, formalised via a Section 13 notice. Informal or in-tenancy contractual increases will no longer be enforceable. Tenants may also challenge proposed increases via the First-tier Tribunal (FFT).
Wilfords’ Property Management team is equipped to benchmark rents accurately and ensure legal compliance while preserving rental yield.
4. Pets and Tenants’ Rights
Landlords will be required to consider pet requests reasonably, though refusal is still valid where the lease or freeholder prohibit animals. The Bill will update the Tenant Fee Act to permit landlords to require insurance coverage for potential pet damage.
5. No Discrimination Against Tenants on Benefits or With Children
The Bill makes it illegal to refuse applications from tenants on benefits or those with children – an effort to improve access across the rental market.
6. Student Accommodation
Purpose-built student housing will be removed from the Assured Tenancy System, but the government has suggested that exemptions for student tenancies should extend to private landlords renting one- or two-bed flats to students. Currently, only houses in multiple occupation (HMO) are exempt.
7. Ban on Rental Bidding
Agents and landlords will be prohibited from inviting or accepting bids above the advertised rent. Transparency will become mandatory in the marketing process.
Wilfords already prioritises fairness and clarity in rental listings, and we will adapt processes to remain fully compliant.
8. Cap on Rent in Advance
Landlords will no longer be able to require more than one month’s rent in advance.
Section 8 Grounds – Key Updates for Landlords
Several new and revised Section 8 grounds are included in the Bill, including:
- Ground 1A (new) – If you are selling the property: four months’ notice required and the tenancy must be at least 12 months old. The property cannot be re-let for a year.
- Ground 1 (amended) – For landlords or close family moving in: same notice rules as Ground 1A.
- Ground 8 (amended) – Now requires three months’ arrears (up from two) and four weeks’ notice (up from two).
- Ground 4A (new) – Student HMO properties only; tenancies can only end between 1st June and 30th September.
What’s Still Under Consultation?
Several provisions remain in consultation and are expected to follow later stages:
- Energy Performance (EPC) requirements: Likely to mandate a minimum EPC rating of C in future.
- Decent Homes Standard: All rented homes must meet a basic safety threshold or face fines of up to £7,000 and potential prosecution.
- Awaab’s Law: Already applied to social housing, this law is extended to the private rental sector. Introduces strict timelines for tackling serious health hazards like mould.
- Landlord Portal: A national database requiring all landlords to register and upload compliance documents.
- Ombudsman Scheme: All private landlords with assured tenancies must join a new independent dispute resolution body.
What the Reforms Mean for You
Understandably, landlords are concerned about the implications of the Bill, and we continue to monitor the outcome of the Committee Stage as we await greater certainty. Although the legislation cannot be considered good news for landlords, it’s important to note that the dynamics of the rental market are not going to suddenly change. The shortage of rental properties remains acute, particularly in Prime Central London, which continues to drive strong yields and attract high-quality tenants.
For landlords who remain organised and compliant, the rewards of a stable, long-term tenancy are very much still within reach.
Why Choose Wilfords?
Here at Wilfords, we are already experiencing a rise in enquiries from landlords looking into our property management services as they prepare for the first phase of implementation. If you’re considering your options or have questions about how these changes affect your portfolio, please do get in touch. We’re here to help.