Preparing for the Renters' Rights Bill: What Landlords Need to Know

As the rental sector continues to evolve, the introduction of the Renters' Rights Bill signals significant changes ahead for landlords. The Renters’ Rights Bill replaces the Renters (Reform) Bill, which was not passed before the previous General Election. While tenant protection is crucial, landlords also face new responsibilities and challenges that could impact the way they manage their properties. In this article, I’ll address what the new Renters’ Rights Bill means for landlords, how to prepare, and the key differences between this bill and the Renters (Reform) Bill it replaces.

How Will This Bill Affect Landlords?

Having experienced both sides, as a tenant and now acting for various landlords - I understand the importance of protecting tenants’ rights while also recognising the challenges landlords face in maintaining their properties and ensuring fairness. The Renters' Rights Bill addresses necessary tenant protections, but it also introduces new challenges that landlords will need to prepare for. Here’s what to expect:

1. Increased tenant protection: One of the key elements of the Renters' Rights Bill is likely to include stronger protections for tenants, including more stringent rules around evictions and rent increases. Landlords will need to adapt to these limits, which might lead to a more cautious approach when selecting tenants.
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2. Abolition of fixed-term tenancies: The bill proposes to abolish fixed-term tenancies, meaning that all tenancies will automatically become periodic. This shift will affect how landlords manage their rental cycles, reducing flexibility in planning tenancies of fixed durations. Landlords will need to be more responsive to market shifts and adjust to tenants staying for indefinite periods without a pre-set end date.
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3. Legal right to request pets: As someone who has a pet, I’m naturally supportive of this right. The Renters' Rights Bill introduces the legal right for tenants to request pets in their rental homes. While landlords won’t be able to refuse these requests without good reason, they will still have the right to require pet insurance or deposits to cover any potential damage. It’s a win win situation, and I believe it shows the evolving nature of tenant-landlord relationships.
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4. Banning rent bidding wars: The bill also seeks to ban the practice of tenants competing by offering higher rents than the advertised price. While this measure protects tenants from being outbid, it may limit landlords’ ability to maximise rent in competitive markets. This change will require landlords to adopt clearer pricing strategies and remove the possibility of negotiating higher rents.
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5. Changes to the eviction process and non-payment of rent: The bill is expected to make it harder for landlords to evict tenants, especially in cases where there are minor breaches of tenancy agreements or rent arrears. In some cases, tenants could stop paying rent for up to three months before landlords are legally allowed to take action. This delay in addressing non-payment can be a significant challenge for landlords who rely on rental income for mortgage payments or property maintenance. Greater attention will need to be paid to communication and dispute resolution with tenants before issues escalate.
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6. Longer waiting times for vacant possession: One major concern that is not addressed by the Renters' Rights Bill is the inefficiency of the court system. Currently, landlords already experience substantial delays in resolving disputes and evictions due to overburdened and underfunded courts. With new rules likely to increase the number of tenancy disputes, landlords could face even longer waiting periods before gaining possession of their properties. This could affect cash flow and overall management strategies for landlords with multiple properties.
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7. Extending Awaab’s Law: We fully support the extension of Awaab's Law, which aims to raise living standards by enforcing stricter timelines for addressing mould and damp in the private rental sector. Originally introduced after the tragic death of Awaab Ishak, this reform will put much-needed pressure on unscrupulous landlords who neglect essential property maintenance. While it adds compliance responsibilities for all landlords, it targets those who endanger tenants' safety, ensuring that property standards are met to avoid legal and financial consequences.
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8. Higher compliance costs: The bill may introduce more stringent standards for property maintenance, repairs, and inspections. Landlords will likely need to invest in higher compliance costs, and penalties for non-compliance may become stricter. Ensuring your properties meet these standards will be critical to avoiding fines or legal issues down the line.

Looking ahead

While I fully support the need for greater tenant protections, especially regarding pets, the Renters’ Rights Bill introduces new challenges for landlords that cannot be ignored. Longer delays in vacant possession, increased compliance costs, and unresolved issues with the court system will make it more difficult to manage properties efficiently. Moreover, anticipated changes in the Autumn Budget, such as the potential changes to CGT and removal of tax benefits for short-let properties, combined with the broader goal of achieving EPC C ratings by 2030, will further impact the financial outlook for many landlords.

At Leufroy Ltd, we work closely with landlords to manage these complexities and help them stay ahead of changes in the rental market. Strong relationships with management agencies, attention to compliance, and a proactive approach to tenancy agreements will be critical moving forward. By preparing now, landlords can mitigate the risks and adapt to the evolving rental landscape.