Renter’s Rights Bill Update

Fixed term ASTs to be replaced with Periodic Assured tenancies

Once the Bill is passed, all existing and new Assured Shorthold Tenancies will immediately become rolling tenancies without a fixed end date.

• Impact for Tenants
  These more flexible periodic tenancies allow tenants to end their tenancy with just two months’ notice, without being tied to long fixed-term contracts.

  During the first 12 months of a new tenancy, landlords will not be allowed to move back into their property or attempt to sell it unless they sell to another landlord who will honour the tenancy. Hence, tenants will have a 12-month protected period. Landlords need to be aware that a tenant can still give two months’ notice to terminate during this period.

  It is hoped that a single, standardised tenancy model, tenants should benefit from greater legal clarity and reduced uncertainty in their rental arrangements.

• Impact for Landlords
  While many landlords are concerned about losing fixed-term tenancy control, periodic tenancies may offer practical advantages. They may attract tenants who prefer transparency and flexibility, potentially reducing void periods. Landlords may also benefit from a simplified letting process without the need for protracted renewals and contract renegotiations.

  In cases where tenants give notice, the property can be re-let more quickly than waiting out a fixed term. The need to find ‘good’ responsible tenants who are in alignment with the landlords’ aims and intentions for their property has never been greater. Communication and transparency will be key. Over time, a standardised tenancy structure could reduce legal ambiguity and make it easier for compliant landlords to manage tenancies fairly and efficiently.

The abolition of Section 21 “no-fault” evictions

Landlords can no longer evict tenants without cause. Evictions will only be permitted under revised Section 8 grounds with mandatory advance notice given.

• Impact on Tenants
  The end of Section 21 offers tenants’ greater security and stability. Tenants can no longer be evicted without a valid reason, reducing the fear of losing their home with just two months’ notice. It also creates a more transparent and predictable renting experience, where tenants understand their rights and are protected from arbitrary displacement.
• Impact on Landlords
  Removing Section 21 evictions will limit a landlord’s ability to end tenancies at will. Instead a Section 8 notice must be served, issuing a warning that the landlord is seeking possession due to the tenant breaching the terms of their tenancy agreement. In this case a valid legal reason is required – such as rent arrears, damage to property, antisocial behaviour. A specific notice period must be given before applying to the court for a possession order.

  Section 8 notices will now include Ground 1 (you, or a family member, want to live in the property) or 1A (you want to sell the property). For these two Grounds a minimum of four months’ notice is required, and the notice can’t end within the first 12 months of the tenancy. Something for landlords to be aware of.

Reform and expansion of eviction grounds

Updated statutory grounds for possession, including new safeguards and clearer procedural requirements on notice. Balancing the tenants need for security, while ensuring landlords can recover their property when reasonable.

Statutory rent increase safeguards

Rent may only be increased once every 12 months via a formal Section 13 notice, with at least two months’ notice. Tenants can challenge increases deemed above-market through the First-tier Tribunal.

Ban on rental bidding and excess fees

Landlords or agents must advertise a set asking price and cannot solicit higher offers. Any requirement for advance rent will be limited to a single month.

Children, benefits & animals

Discrimination on the basis of having children or being the recipient of benefits is prohibited. Tenants may request permission to keep pets, which landlords must not refuse unreasonably. However, mandatory pet insurance paid by the tenant has recently been struck off the Bill which presents a dilemma for landlords without a clear answer.

Property standards: decent homes & Awaab’s Law

The Bill introduces the statutory Decent Homes Standard (DHS) and extends Awaab’s Law to private rentals, compelling landlords to fix health/safety hazards such as mould and emergency leaks, within set timelines .

Ombudsman mechanisms for redress

All private landlords must join a government-approved redress scheme or ombudsman to handle complaints, with powers to enforce decisions.

Private rented sector database

A centralised PRS database for landlords, tenants, and local authorities will be established, containing compliance data and records of enforcement action. This is to track poor practices and improve overall transparency.

Local Authority enforcement & penalties

Councils will receive new duties and powers to enforce the Bill’s provisions (e.g., banning orders, and fines up to £7,000 for serious hazards or discriminatory conduct and up to £40,000 for repeat offences).