Renters Rights Bill: A Guide for London Landlords

The recent Renters’ Rights Bill is set to introduce substantial changes to the rental landscape in the UK, aimed at improving tenant protections while encouraging transparency and responsibility among landlords.

For landlords in London areas like Harold Wood, Forest Gate and Manor Park, understanding these changes is essential to ensure compliance and maintain positive relationships with tenants. This guide provides an overview of the key points of the Renters’ Rights Bill and what London landlords need to know. 

The bill is still passing through parliament and due to be amended, but below we outline some of the key points of the bill to keep an eye on.

Key Changes Under the Renters’ Rights Bill 

The Renters’ Rights Bill will introduce a range of measures designed to protect tenants and create fairer conditions within the private rental sector. Key areas of reform include the abolition of “no-fault” evictions, stronger rules on rental conditions and repairs, and measures for improving transparency in tenancy agreements.

Here’s a breakdown of the main provisions – though it is not exhaustive!

1. Abolition of “No-Fault” Evictions 

One of the most notable changes in the Renters’ Rights Bill is the abolition of Section 21 “no-fault” evictions. Previously, Section 21 allowed landlords to end a tenancy without providing a reason, often with two months’ notice. This led the government to scrap this measure under the new bill.

Under the new legislation, landlords can no longer evict tenants without providing a reason. Instead, a landlord must have a valid and specific reason, such as breach of tenancy, non-payment of rent – or situations where the landlord intends to sell or occupy the property. This covers the reasons why landlords commonly used Section 21 evictions in the past – but now this is covered under Section 8.

For landlords, this means that managing evictions requires clear documentation of tenant violations or other legitimate reasons.

2. Strengthened Grounds for Eviction 

While Section 21 evictions will be abolished, the Renters’ Rights Bill has reinforced certain grounds under Section 8 to balance landlords’ needs and tenants’ protections. 

The key grounds include: 

• Non-payment of rent: If a tenant falls behind on rent payments, landlords can still pursue eviction through a strengthened Section 8 process. That said, you will only be able to provide a tenant with an eviction notice after 3 months arrears (up from 2 months), and the notice period will be 4 weeks (rather than 2 weeks).

• Anti-social behaviour: Tenants engaging in disruptive or illegal activities can face eviction under reinforced grounds for anti-social behaviour. Eviction proceedings for serious criminal activity or anti-social behaviour can begin immediately with no notice period.

• Property sale or occupation by the landlord: Landlords who wish to sell their property or move in themselves can still initiate eviction but must provide more detailed documentation and longer notice periods, usually for four months – and only after the first 12 months of the tenancy have elapsed.

These grounds offer legitimate avenues for landlords to regain possession of their property under specific circumstances, though it is essential to follow the new requirements carefully. 

3. Rent Increases and Limits on Frequency 

The Renters’ Rights Bill also seeks to limit unfair rent hikes, particularly in areas like London where rental prices can rise rapidly. Under the new regulations: 

• Rent increases are limited to once per year, providing tenants with greater stability and reducing unexpected financial strain. 
• Notice periods for rent increases are extended to two months, giving tenants time to prepare or dispute changes if necessary. 
• Dispute rights for tenants: Tenants now have the right to challenge excessive rent increases through a tribunal process if they feel that the proposed increase is unreasonable. 
• Tribunal changes: The tribunal for rent increases has also been reformed. For example, rent increases can’t be backdated from the tribunal, the rent can’t be raised above the rate proposed by the landlord, and it’s possible for the tribunal to rule that the rent increases should be delayed due to tenant hardship.

Landlords should plan for more structured rent reviews and ensure any proposed increases are fair and in line with market conditions. Clear, documented communication with tenants about rent changes is advisable to maintain transparency and minimise disputes. 

4. The Introduction of a New “Decent Homes Standard” 

To further improve rental standards, the Renters’ Rights Bill introduces the “Decent Homes Standard” across the private rental sector, which was previously only applicable in social housing. This standard covers aspects of housing quality, such as safety, structural integrity, and the provision of basic amenities. 

Key aspects of the Decent Homes Standard include: 

• Safety: Properties must be free from significant hazards, particularly damp, mould, and structural risks. 

• Basic facilities: Adequate heating, cooking facilities, and hot water must be provided. Properties that lack these facilities could be deemed “non-decent” and subject to enforcement. 

• Space and ventilation: Proper ventilation and space requirements are also mandated under the Decent Homes Standard, designed to combat overcrowding and maintain air quality. 

Landlords may need to invest in property improvements to meet these standards, especially in older buildings that may not meet modern criteria. Adherence to the Decent Homes Standard is essential to avoid penalties and ensure properties remain rentable under the new law. That said, it is estimated that 79% of landlord properties already meet the fundamental standards set out by the DHS already.

5. New Ombudsman

There is set to be a new ombudsman service which helps tenants raise issues with landlords. The aim is to provide another outlet to resolve issues that arise during a tenancy with greater ease.

It will be given the power to make binding resolutions on the issues raised, with landlords liable to follow whatever is decided. For example, the ombudsman will be able to order landlords to apologise, refund rent, pay a fine or provide necessary information to tenants.

Landlords will have to sign up for and pay for the service (though the amount is not yet decided). Equally, failure to follow a ruling from the ombudsman service can lead to fines of up to £7000, or £40,000 for repeat offenders.

6. New landlord database

There is due to be a new landlord database to centralise personal information, guidance, and listed rental properties. All landlords will be required to sign up to the database and pay to use it. The idea is to help tenants and local authorities access these profiles to view compliance information (e.g. EPC certificates), any past sanctions – and in the case of local authorities – to chase up landlords who are breaking the rules.

For landlords, this will act as a central point where they can see any updates to rules, changes to compliance, or any legal actions they need to take. They will also be able to edit their profiles to show their active properties and input their personal information.

7. Ending discrimination for tenants

Another notable measure for the bill is to end discrimination against DSS tenants and those with children. Landlords and letting agents will no longer be allowed to exclude these tenant categories in their advertising, or use other practices to exclude them from consideration.

Instead, the only real criteria can be affordability – alongside practical and health and safety considerations. Landlords and letting agencies will be fined if they are found to be discriminating in these ways.

Ending rental bidding

The bill also proposes that landlords and letting agencies ban ‘rental bidding’ – which is also likely to exclude tenants from consideration unfairly. Instead, they must advertise a set, ‘asking rent’ which is adhered to strictly. This will prevent the scenario where a property’s rental price is greatly inflated by multiple bidders.

8. Pets in rental property

The new bill aims to make pets allowed in rental property by default – a change which has been on the cards for a long time. However, this isn’t without exception.

Landlords will be able to appeal against pets in their property on several important grounds, like the health and safety of other tenants. Equally , the Tenant Fees Act 2019 will be amended to allow landlords to require that pet owners take out insurance for their pets to cover the costs of any extra damage or wear and tear.

The government intends to publish more specific guidance on the measure in the near future.

Conclusion 

There’s plenty more contained in the Renters’ Rights Bill, but this article presents an introduction which is useful for landlords to consider – and remember – the legislation is still evolving and yet to be passed. If you’re looking for advice on your rental properties in areas like Woodford, Barkingside and Plaistow, then get in touch with our team today.