It is five years since Theresa May’s government first promised the “biggest change to the private rental sector for a generation”. Though the pledge was repeatedly put on the back burner, landlords knew major new legislation was on its way. Though, crucially, not when.

Under the new Labour government, rental reform is back in the spotlight and the new Renters’ Rights Bill will bring in a slew of legal changes for landlords in England. An end to Section 21 notices - so-called ‘no-fault evictions’ - is accompanied by other reforms, including a crackdown on rental bidding wars, the implementation of a Decent Homes Standard for the private sector and strengthened rights for renters to request a pet. The bill is currently making its way through parliament, and is expected to become law by summer 2025.

The aim, the government says, is to create a “level playing field between tenants and landlords”. Introducing the Bill for its second reading, Deputy Prime Minister Angela Rayner was at pains to emphasise that they recognise the “important role of landlords, most of whom provide good-quality homes for their tenants”. “Good landlords,” she added, “have nothing to fear from this Bill.”

Nonetheless, all landlords in England will need to be aware of their responsibilities under the new law. This guide will help you prepare.

Abolishing Section 21 evictions

The most headline-grabbing change in the Renters’ Reform Bill is undoubtedly the end to Section 21 notices. Frequently referred to as ‘no-fault evictions’, this process currently allows landlords to remove tenants from their properties in England with two months’ notice, without giving a reason.

Section 21 has been blamed by Shelter and other housing charities for fuelling a rise in homelessness - but many landlords have expressed concern at losing the ability to reclaim their properties in this way. The State of the Lettings Industry Report 2024, by lettings platform Goodlord, found 69.7% of letting agents, landlords and industry professionals feared potentially negative consequences.

Landlords will not be left powerless, however. Under the new law, grounds for Section 8 notices will be expanded and strengthened to balance the rights of landlords and tenants.

Currently, you can issue a Section 8 notice to evict your tenants if they have broken the rules of their tenancy. For example, if they are behind in their rent, have damaged the property or have become a nuisance to neighbours. When the new law passes, as a landlord you will also be able to issue a Section 8 notice because you or your family wish to move into the property, because you want to sell the property, or because you wish to redevelop the property. The full new list of grounds, and the relevant notice periods, is available on the government’s Guide to the Renters’ Rights Bill.

Increased rights to request a pet

Currently, landlords are free to impose a blanket ban on pets in their properties. This will change under the new law, with tenants being granted a legal right to request a pet. If asked, you may not ‘unreasonably refuse’. However, the responsibility for preventing and resolving damage caused by a pet will fall to the tenant. The Renters’ Rights Bill will allow you to require pet owners to take out insurance covering the antics of their furry (or scaly, or feathered) friends.

In recent research by Dogs Trust and Cats Protection, 46% of landlords said they already allow pets in their properties. The study also found that there could be unexpected advantages for landlords in allowing pets - “26% of tenants would stay longer in a property if they were allowed to keep a pet”. If you need advice on becoming a pet-friendly landlord, Dogs Trust can help through its Lets with Pets scheme.

No more rental bidding wars or ‘No DSS’ adverts

In popular areas, it has become more common for potential tenants to offer over the asking price to secure a tenancy. The Renters’ Rights Bill aims to outlaw rental bidding, and therefore “level the playing field for renters and crack down on the minority of unscrupulous landlords who make the most of the housing crisis by forcing tenants to bid for their properties”. Once passed, the new law will require landlords and letting agents to publish an asking rent for every property. It will be illegal to ask for, encourage, or accept any bids above this price.

Though landlords will have the final say on who they let their property to under the Renters’ Rights Bill, they will no longer be permitted to block families with children or people who receive benefits. The new law is intended to end overt practices - such as ‘No DSS’ adverts - and other indirect means of discouraging these groups. As well as introducing these changes in England, the government is working to extend the rules to Wales and Scotland.

End of fixed-term tenancies and changes to rent increases

A fixed-term tenancy is a rental agreement with a set end date - typically running for six or 12 months. The main advantage for landlords is a guaranteed rental income: during the fixed-term period, the tenant is responsible for the rent and obligations of the tenancy agreement. These agreements also offer stability and allow landlords to plan ahead. The disadvantages include a lack of flexibility and a limited ability to terminate the tenancy.

Under the new Renters’ Rights Bill, fixed-term tenancies will be banned, so all tenancies in England will move to a periodic basis. Tenants will be able to stay in their home until they decide to end the tenancy by giving two months’ notice. The government promises this update will offer more flexibility to respond to changing circumstances - for both parties. Landlords can end a tenancy by following the Section 8 process outlined above.

Landlords will be able to raise rents once per year, in line with the market rate - the price the property would achieve if newly advertised to let. This will be done through a Section 13 notice, and you will have to give two months’ notice of the change to your tenants. Full details of proposed tenancy reforms are available here.

A Decent Homes Standard for private rentals

The Decent Homes Standard (DHS) already outlines the minimum requirements for social housing in England and Northern Ireland. Under the Renters’ Rights Bill, similar rules will also apply to private rented homes in England for the first time.

The government has announced a consultation on the new standards to ensure they cover a modern definition of a ‘decent home’ - but the basic goal is for homes to be safe, in a reasonable state of repair, with reasonable facilities, and proper heating and insulation. The government says the new DHS should help landlords by “clarifying requirements and establishing a level playing field”.

The DHS will be enforced by local councils, which will be able to issue improvement notices requiring you to remedy any issues within a specified timescale. If you do not complete the improvements within that period, you could be subject to a civil penalty or criminal prosecution.

A new ombudsman and database

As a landlord, you will be legally required to register with two new services:

Private Rented Sector Landlord Ombudsman Service: The new ombudsman will provide guidance and support to landlords and will offer impartial resolution to any complaints raised by tenants. It is likely to cost a “small annual fee per property”.

Private Rented Sector Database: The database will provide a “one stop shop” for information to help you understand your obligations and demonstrate compliance. It will also make it easier for renters and local authorities to see who owns which properties. The government is working to ensure that fees to register are “proportionate and good value”.

Enforcement of the new rules

Councils will have a range of new investigatory powers to enforce these new reforms.

• Initial or minor non-compliance will incur a civil penalty of up to £7,000.
• Serious, persistent or repeat non-compliance could mean a fine of up to £40,000, with the alternative of a criminal prosecution.

Rent repayment orders - which allow tenants to recoup rent if their landlord hasn’t followed private rented sector laws - will also be strengthened under the Renters’ Rights Bill. The maximum amount of rent a landlord can be ordered to pay will double from 12 to 24 months.

What about the rest of the UK?

Housing is a devolved policy area, so legislation varies across the UK. The Bill’s headline policy of banning no-fault evictions was enacted in Scotland in December 2017. “The example of Scotland has shown that landlords can adapt well to the changes in the law,” according to property litigation specialists Hagen Wolf. In Wales, no-fault evictions are currently still possible, but in December 2022 the notice period was increased from two months to six months. In Northern Ireland, the notice period for a no-fault eviction is four weeks where tenants have been in the property for less than 12 months, eight weeks for tenancies between one and 10 years, and 12 weeks for tenancies that have been in place for longer than that. However, campaigners are pushing for no-fault evictions to be banned across the UK.

More information on your responsibilities as a landlord in other parts of the UK is available from the Scottish Government, the Welsh Government and NI Direct.

FreeAgent for Landlords

Following new rules while managing your properties can feel like a lot of work. FreeAgent can help you stay on top of your admin. You can record income and expenses against each of your properties, automate many of your admin tasks and see real-time tax calculations based on information in your account.

You can get a 30-day free trial of FreeAgent for Landlords and try out property management without the fuss.