Thomas Palmer MARLA – Head of Business Development
What is the Renters' Rights Bill?
The Renters’ Rights Bill had its first reading in Parliament on September 11th and represents Labour’s revised version of the Conservatives’ Renters (Reform) Bill. While there are significant similarities between the two bills—such as the abolition of Section 21 no-fault evictions and fixed-term tenancies—Labour has added additional reforms, including extending Awaab’s Law to the private rental sector and abolishing rental bidding wars.
The Renters’ Rights Bill seeks to enhance tenants’ rights and make the private rental sector fairer. However, industry experts warn that despite the Bill’s noble intentions, it could lead to a reduced housing supply, potentially increasing the financial burden on tenants.
What will the Renters’ Rights Bill introduce?
During the Bill’s First Reading in the House of Commons, the Government outlined plans to:
- Abolish Section 21 ‘no-fault evictions’ and fixed-term tenancies, introducing a new set of ‘robust’ possession grounds that will require four months’ notice from landlords. It is understood these grounds will not be available within the first 12 months of a tenancy.
- Limit rent increases within tenancies, allowing a single annual increase, capped at market levels.
- Extend Awaab’s Law to the private rental sector, setting clear timeframes for landlords to address serious hazards in rental properties and make homes safe.
- Introduce a Decent Homes Standard, with fines of up to £7,000 for landlords who fail to meet the required standards.
- Establish a compulsory digital database for the private rental sector, providing information for landlords, tenants, and local authorities.
- Launch a new housing ombudsman service to offer fair, impartial, and binding resolutions for both landlords and tenants.
- Strengthen tenants’ rights, including the ability to challenge rent increases, ban rental bidding wars, and request permission to keep pets. The Bill also aims to prohibit discrimination against tenants receiving benefits or those with children when choosing whom to let to.
- Abolish fixed-term tenancies, allowing tenants to give two full calendar months’ notice from the start of their tenancy.
When will these measures be introduced?
Although no definitive timeline has been set, Labour has indicated that they aim to implement the Bill for both existing and new tenancies by Summer 2025.
Our thoughts on the Renters’ Rights Bill…
While change can be challenging, industry experts are working hard to ensure that the Renters’ Rights Bill is fair to both landlords and tenants. We expect ongoing debate as the Bill progresses through subsequent readings in Parliament.
At Watsons, we’re here to help landlords navigate this evolving landscape with confidence. As managing agents, we play a crucial role in ensuring our clients stay compliant with the ever-changing legislation. The Renters’ Rights Bill represents a significant shift in the rental sector, and it’s more important than ever for landlords to have a trusted, knowledgeable managing agent by their side.
Our team of rental experts are closely monitoring the Bill’s progress, and we are prepared to implement the necessary procedures to ensure our landlords are fully compliant when the new laws come into effect. With our proactive approach, we take the complexity out of regulation, allowing you to focus on the benefits of your investment while we handle the compliance.
We work alongside industry leaders like Propertymark and Goodlord to provide our clients with the most up-to-date professional advice and services. As your managing agent, we take on the administrative and legal responsibilities, so you don’t have to worry about staying on top of the latest reforms.
There’s no need for concern—while the changes may seem daunting, housing remains a solid long-term investment, and with Watsons managing your property, you’ll be in safe hands.
Contact Us
If you wish to discuss our lettings services, please contact our team at 0333 220 1234 or email: lettings@watsons-property.co.uk. Find out more about our Lettings services here.
