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The Renters’ Rights Bill

All the important information for letting agents

What is the Renters’ Rights Bill?

If you’re in the lettings industry, you’ve probably come across Labour’s Renters’ Rights Bill. This was introduced in response to the Conservatives’ Renters (Reform) Bill. But what does it entail, and how might it impact letting agents?

This Bill marks the most significant change in housing law in three decades, bringing widespread legislation updates to the lettings sector. Some of the most important changes include eliminating Section 21 evictions, more efficient dispute resolution processes, and stricter enforcement of property standards.

The legislation aims to create a fairer rental market while empowering tenants.

We recognize the challenges these changes may bring to our partner agents, and we’re committed to providing the guidance and support you need as the industry adapts to this new landscape!

Latest news

January 15th, 2025

The Renters’ Rights Bill began its journey in the House of Lords with its first reading on January 15, 2025.

This followed a decisive third reading in the House of Commons, where the legislation saw strong support, passing by a significant margin of 440 votes to 111.

Next, the Bill will move to its second reading in the House of Lords, where it will be debated in greater detail.

How Let Alliance can support your business

Vision +

Our pre-tenancy platform, which is free for partners, reduces admin, supports with compliance burdens and is packed full of tools to make progressing a let that bit easier.

Rent Guarantee

If your landlord customers are worried about the abolition of S21, our Rent Guarantee product can help put their minds at ease!

VISTA referencing

With restrictions on up-front payments, VISTA’s intelligent referencing looks at tenants’ actual affordability, not just how much they earn!

Pets in lets

Our Tenants Insurance covers damage caused by pets!

Our expert team are also here to support you through the upcoming changes. If you’re worried about the Renter’s Rights bill, or you’d like to find out more information, please contact your Customer Development Manager, or call us on 01244 564 986.

Frequently asked questions

The Renters’ Rights Bill is a proposed legislative reform set to introduce significant changes to the private rental sector, requiring both letting agents and landlords to adjust to more stringent regulations.

The abolition of Section 21 means landlords can no longer terminate tenancies without providing a specific reason. Instead, agents will need to assist landlords in navigating the updated Section 8 processes, which require clear legal grounds for possession, such as selling the property, moving in, rent arrears, or property damage.

If any of your landlord clients are concerned about the end of Section 21, our Rent Guarantee product offers a way to safeguard their income.

This will no longer be allowed as part of the Renters’ Rights Bill. A recently proposed amendment will not allow for more than one month’s rent to be paid in advance. This makes intelligent referencing that looks at tenants’ actual affordability even more important.

There is no set date yet, as the Bill has not yet been confirmed. It is expected to become law in the second quarter of 2025.

Yes, periodic tenancies are expected to become the default. This means tenants can leave with two months’ notice, and landlords can only end tenancies using valid grounds under Section 8.

The bill includes measures to prevent excessive rent increases by limiting rent reviews to once per year and ensuring tenants have the ability to challenge unfair increases.

Tenants will be given up to three months to pay and clear rent arrears before any legal action can begin. If any of your landlord customers are worried about rent arrears and the cost of going to court, our Rent Guarantee product can help protect their income.

Existing fixed-term tenancies will remain in place until they expire, but any new tenancies after the bill is enacted will need to comply with the new rules.

Not necessarily – a Landlord will not be able to unreasonably say no to pets within specific timescales.  If pets are agreed to under the Tenant Fees Act it will be allowed that those Tenants must take out Pet Damage Insurance.

There are some transitional periods for instances in which notices under S8 or S21 have already been served or possession proceedings have already started before commencement. Tenancies will remain assured shorthold tenancies to conclude any proceedings already issued, and any notices which have been served shall remain valid until the expiry of their usual shelf life or a maximum of three months from the commencement date – whichever is sooner.

Yes, the bill proposes a new Ombudsman scheme which landlords will have to join to resolve disputes more efficiently, reducing the need for costly court processes. Letting agents will need to familiarise themselves with this system.

Renters’ Rights Bill timeline

A full timeline of what’s happened so far…

17th May, 2023

Initial Renters (Reform) Bill introduced in the House of Commons by the Conservative government.

13th June, 2024

Labour publish their 2024 manifesto, promising to scrap section 21 ‘no fault’ evictions.

11th September, 2024

The Renters’ Rights Bill was introduced in the House of Commons.

 

9th October, 2024

The Bill had its second reading, where some MPs expressed concerns about the reforms, while others called on the government to go further with their reforms.

14th January, 2025

The Bill completed its passage through the House of Commons, where there were 440 votes for and 111 against.

15th January, 2025

The Bill had its first reading in the House of Lords.

 

4th February, 2025

There will be a second reading in the House of Lords.