The Renters' Rights Bill: What landlords, property managers and surveyors need to know

The Renters’ Rights Bill (the Bill) is set to deliver the most significant overhaul of England’s private rental sector in decades. As the Bill progresses through Parliament, it is vital for property managers and surveyors to understand the proposed reforms, the timeline for their introduction, and the practical steps required to prepare for compliance.

RPC will continue to monitor developments and provide updates as the Bill progresses through parliament.

Background

The Bill, introduced to parliament in September 2024, forms part of a broader effort to reform the private rental sector in the UK to establish a fairer balance between landlords and tenants.

The Bill has passed through both the House of Commons and House of Lords and is currently back with the House of Commons to consider the House of Lord's amendments. The next and final stage for the bill is receiving Royal Assent.    

The Law

At the heart of the Bill is the abolition of Section 21 ‘no-fault’ evictions. This means that tenants can only be evicted on new, specified grounds. In addition, all tenancies will become periodic (or rolling) assured tenancies and the Bill also provides longer notice periods if a landlord or their managing agent evicts a tenant to sell or move into the property. These changes are designed to provide tenants with greater security and stability whilst ensuring that landlords can only reclaim properties for legitimate reasons.

The Bill also seeks to improve fairness in the market by banning rental bidding wars (i.e. preventing landlords and agents from inviting tenants to compete against each other for properties).

Alongside this, the Bill will restrict rent increases to once per year, with landlords and property managers required to follow the statutory Section 13 process to propose rent increases. Tenants will also be given the right to challenge rent increases at the First-Tier Tribunal, providing a clear route to dispute unfair rent rises, whilst reducing the fear of being evicted for challenging the rise.

In addition, the Decent Homes Standard, previously applicable only to social housing, will be extended to all privately rented homes. This means that every property must meet minimum quality benchmarks, and property managers will be obliged to fix serious hazards such as damp and mould within strict timeframes under the expanded scope of Awaab's Law.

The Bill also introduces stronger protections against "retaliatory evictions" in which a landlord or landlord's agent evicts a tenant for complaining about the property or requesting repairs and provides tenants a right to request permission to keep pets, which the landlord must not unreasonably refuse (albeit they can require suitable insurance be put in place).

The reforms are aimed at providing stability for tenants whilst improving living conditions and ensuring that landlords are held to account. However, there are concerns that the changes could reduce investment in buy-to-let properties, further tightening the rental market. Landlord/Tenant disputes rose 13% in 2024 compared to 2023, and there are concerns that the Bill could increase these further.

Property Managers

It will be vital for landlords and their managers to stay abreast of all incoming regulations and the timelines for their implementation to ensure they do not fall foul of the law.

Preparing for the introduction of the Bill will be essential. This will involve reviewing and updating all tenancy agreements (in particular to reflect the change to periodic tenancies and rent review clauses), auditing properties against the Decent Homes Standard, and planning renovations ahead of time.

Property managers may also wish to update tenancy agreements in respect of requests for pets and check landlord's insurance policies in relation to pets living in their rental properties.

Moving forward, property managers will need to be aware of the new grounds and notice periods for possession of properties, whilst ensuring that all rent increases are proposed using the correct procedures. It is likely to be useful to notify landlords of these changes as soon as possible so that landlords can plan accordingly should they wish to increase rents or recover their property in the future.

Depending on the terms of their agreements with landlords, property managers may also be responsible for maintaining the condition of properties in line with statutory standards, facilitating timely repairs to properties, registering properties on the new portal and ombudsman, and dealing with tenant challenges. Property managers should consider preparing a checklist for each property they manage and plan to be complete the checklist before the enactment of the law.

Property managers should carry out inspections of all properties as soon as possible so that they have time to carry out any necessary repairs. It would also be sensible to consider implementing a system for tenants to report issues in their homes and to establish good working relationships with surveyors and contractors who can carry out necessary remedial works in a timely manner.

Errors or oversights may expose property managers to claims from landlords for costs or penalties incurred due to breaches of their obligations under the new regulations. Therefore, robust processes and thorough record-keeping will be crucial.

Surveyors

Surveyors should prepare for increased demand as the Decent Homes Standard is extended to the private sector and landlords become obliged to confirm that statutory standards have been met when registering on the new portal. Surveyors should ensure they have systems in place and adequate resources to deal with this demand.

Surveyors may be asked to provide evidence if a dispute arises about a property's condition. Therefore, staying informed about the new standards and ensuring inspections are thorough and well-documented will be vital.

To that end, surveyors should provide timely, unbiased and detailed advice to landlord and property managers, in relation to a property's condition and any remedial works required. Surveyors should also maintain comprehensive records of all correspondence and documents received in relation to their inspections in case they later need to rely on this.

Howden PI Perspective

As mentioned above, good record-keeping will put you in good stead, in the event of a claim. To be able to have all necessary information required by insurers in the early stages of a claim ensures that the matter is handled with clarity and efficiency, taking stress out of deadlines and allowing ample time for strategy to be considered.

However, from a Professional Indemnity Insurance perspective, the steps outlined above will not only assist in defending a claim in the event one is pursued it will also evidence to insurers the proactive steps being taken as part of the overall risk management strategy for the company.  This will form part of any company’s renewal presentation and should ensure that it satisfies insurers minimum requirements for this type of work.  

Archie Barwick, Claims & Technical Executive, and Jamie Russell, Associate Director, Financial Lines Group Claims

Conclusion

The Bill will require landlords, property managers, and surveyors to adapt swiftly to new regulatory standards, including the conversion of all tenancies to periodic tenancies, stricter rent review and possession processes, and the extension of the Decent Homes Standards to the private sector. Proactive preparations as outlined in this article will be essential to ensure adherence to the new legal requirements and to mitigate the risk of breaching duties of care.

This was written in collaboration with Howden.