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With the Renters’ Rights Bill 2024 expected to commence in mid-2025, landlords must start preparing for the significant changes that will reshape the rental sector. Given that any tenancy agreements granted today will likely still be active when the new law takes effect, reviewing and potentially revising tenancy terms is crucial. The Bill, which abolishes Section 21 ‘no-reason’ evictions and introduces a system of periodic tenancies, will undoubtedly require landlords to adjust their practices.
It’s also important to note that the Bill is still subject to change, and the proposals could shift significantly before becoming law. However, early action to ensure compliance with the most likely changes can help minimise disruption.
Below, we look at how landlords can prepare for the upcoming regulations by focusing on crucial tenancy terms and other matters.
The Bill will require landlords to issue a written statement of terms for every new assured periodic tenancy. While the exact details of this requirement still need to be clarified - particularly for existing converted tenancies- landlords can now take steps to simplify future compliance.
One of the changes will restrict rent periods to a maximum of one month once the tenancy becomes periodic. This aligns with the general move towards monthly rent payments, and any current arrangements with rent periods longer than one month will need adjustment.
The new legislation requires tenants to give two months’ notice to end their tenancy. If your current agreements allow tenants to leave with shorter notice, this may need to be updated, as the rules will enable the landlord and tenant to agree on a shorter notice length.
The Bill proposes banning rent increase clauses in tenancy agreements. Instead, landlords will only be able to raise rents through a formal process that includes giving two months’ notice under a Section 13 notice.
The Bill introduces changes to possession grounds and clarifies when landlords can regain their properties. With the abolition of Section 21, landlords will rely on specific Section 8 grounds to evict tenants. Your tenancy agreements may need to be updated to reflect these changes.
Under the proposed Bill, tenants can request permission to keep pets, and landlords must not unreasonably refuse. Although landlords can require pet insurance to cover potential damage, this shift will impact most current tenancy agreements.
All tenancies will become periodic under the new system, but it’s currently unclear whether being in a fixed term when the Bill takes effect will have any additional requirements. Issuing shorter fixed terms (e.g., six months) may make the transition smoother for landlords and tenants.
With the upcoming Renters’ Rights Bill 2024 changes, landlords are particularly concerned about student lettings. Traditionally, student tenants sign fixed-term contracts months before the academic year. However, the Bill’s abolition of fixed-term tenancies could pose significant challenges to this practice.
With the abolishment of Section 21 ‘no-reason’ evictions, landlords will no longer be able to regain possession of their properties without giving a reason. Moving forward, they must rely on Section 8 possession grounds, which could complicate reclaiming a property.
The Bill introduces a new Private Rented Sector Landlord Ombudsman, which all landlords will be required to join, and a Private Rented Sector Database that landlords will need to register with. Failure to comply with these new obligations could result in penalties and restrictions on possession claims. These provisions might become law after the initial Bill comes into effect.
Rent controls are not being introduced, but all future rent increases must follow the statutory Section 13 process. This could slow down the process of raising rents, so landlords should plan accordingly.
The Renters’ Rights Bill 2024 will significantly change landlords' tenancy management, so it is essential to start preparing now. Although the details of the Bill are not yet finalised, taking proactive steps—such as revising tenancy agreements, preparing for new requirements, and updating notice periods—can help landlords avoid future non-compliance and disruption. Remember that the Bill may still change, so staying informed is crucial.
Landlords should regularly consult professional bodies such as the Guild of Residential Landlords and official government sources for further updates and guidance.