Renters' Rights Act: now in force
In September 2024, the Renters' Rights Bill was set out in Parliament. That Bill has now received Royal Assent, becoming the Renters' Rights Act 2025. However, the main provisions will not be in force until at least 2026. RPC will be providing updates as the government announces how the reforms will be rolled out over the coming months.
The Act marks a significant change to the law affecting tenants in private rented accommodation. Landlords, property managers and surveyors will need to fully grasp the new requirements and take steps to comply, where necessary.
Notable changes include:
- Removal of Section 21 notices or 'no-fault' evictions. Landlords will now only be able to evict tenants on new statutory grounds, bolstering tenants' security, whilst tenants can give two months' notice to quit.
- Ending fixed term, assured and assured shorthold tenancies. All tenancies, new or existing, will be converted to periodic (or rolling) assured tenancies.
- Banning rent bidding wars and preventing landlords from demanding sums in excess of one month's rent upfront.
- Rent review clauses will be of no application. Increases in rent will only be acceptable once per year and will only be valid if landlords serve tenants with a Section 13 notice providing two months' notice.
- A new process for tenants to challenge rent increases.
- Application of the Decent Homes Standard, introducing core quality standards for properties as a result and strict timeframes for completing remediation work under Awaab's Law.
- A compulsory digital database of the private rented sector requiring registration of all landlords and properties. Landlords will be able to find information on their legal obligations and tenants will be provided with guidance on making better informed decisions about tenancies.
- A new landlord redress scheme with the introduction of the Private Rented Sector Landlord Ombudsman.
- Tenants' right to request keeping a pet and permission to not be unreasonably refused (albeit landlords will be able to ask them to obtain insurance for potential resulting damage).
- New investigatory powers and sanctions for non-compliance including increased civil penalties and criminal offences, making it easier for local authorities to take enforcement action. Local authorities will need to report on such action taken.
Conclusion
Landlords, property managers and surveyors would be wise to take measures ahead of implementation given that some may have short implementation times. Act proactively now so as not to fall foul of the new legal duties, and with it enhanced penalties including criminal convictions.
Our previous article on the Renters' Rights Bill sets out some of the reforms in more detail and provides practical tips for ensuring compliance. You can read it here.
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