The Renters Rights Bill is set to bring significant changes to the private rented sector in the UK, aiming to provide stronger protections and rights for millions of renters:
- Abolition of Section 21 ‘No-Fault’ Evictions: Landlords will no longer be able to evict tenants without providing a valid reason. This aims to provide greater security for renters.
- Assured Periodic Tenancies: Assured Shorthold Tenancies (ASTs) will transition to Assured Periodic Tenancies, which are monthly agreements. Tenants will be protected for 12 months during which time landlords cannot attempt to sell or regain occupancy of the property. Tenants will be able to end a tenancy by giving 2 months’ notice and the end date of the tenancy will need to align with the end of a rent period.
- Cap on Advance Rent Payments: Landlords can now only request up to one month’s rent in advance, along with a security deposit of up to five or six weeks’ rent. This change is designed to make housing more accessible and fairer for tenants.
- End to Rental Bidding Wars: The bill includes measures to prevent landlords from encouraging bidding wars among prospective tenants, which can drive up rental prices.
- Tackling Unreasonable Rent Increases: Landlords can increase the rent once a year, but this must be in line with local market rent and evidence of this must be provided. Tenants can dispute the evidence by applying to the First-tier Tribunal.
- Private Rented Sector Database: Landlords will need to register, providing better information to tenants to make informed decisions when entering into a tenancy agreement.
- Adjustment Period for Implementation: When the Bill is formally introduced, there will be an adjustment period before it is legally enforced.
- Uniform Conversion of Tenancies: It has been proposed that existing and new tenancies will all convert to the new legislation at the same time, in the interest of fairness. However, the Lettings Industry Council is requesting a phased approach for existing tenancies due to the volume of them.
- Prohibition on Overcharging Rent: It will no longer be possible to accept or offer rents over the advertised price.
- Fines for Non-Compliance: Landlords could face fines ranging from £7,000 to £40,000 if found to be in breach of the terms outlined in the Bill.
- Right to Keep Pets: Tenants will have the right to request permission to keep pets. Landlords cannot unreasonably refuse permission; however, they can request that the tenant obtain insurance specifically to cover potential damage caused by the pets.
Implementation Timeline
The Renters Rights Bill is expected to be implemented by late spring 2025, with the new rules coming into effect by summer 2025. The government has indicated that October 2025 will be the latest possible date for full implementation.
Our team is here to help you understand how the Renters Rights Bill impacts you and provide guidance tailored to your specific situation. For personalised advice and support navigating these changes, contact Clearview Relocation today!
Phone: 01635 239041