The Renters’ Rights Act features a series of measures intended to provide a fairer rental market with tenants having greater security and the ability to challenge bad practices while landlords benefit from more straightforward regulation, and clearer grounds for possession.
Key features include the abolition of Section 21 evictions, as well as the implementation of an official Private Rented Sector Database, strengthened rights to request a pet in the property, and more. There are also hefty penalties for those who don't follow the new rules.
While many landlords are apprehensive about the new rules, with the right agent by your side, it's an opportunity to make sure you've got all the I's dotted and the T's crossed, placing you in the best position possible to profit from your property investment and build great tenant relationships.
Here's our landlord's introductory guide to the Renters’ Rights Bill, from the Chestertons lettings team, to make sure you start on the right foot.
The Renters' Rights Act is a new piece of legislation that's intended to improve the private rental section by providing greater protections for tenants whilst delivering clarity around landlord rights. It was set out in 2024 as a proposed Act of Parliament, and has been a cornerstone of the Labour government's housing reforms, set to come into practice in 2025.
The Bill does mean some significant changes for landlords, which makes it more important than ever to make sure you are aware of the regulations, as well as how to comply with them. A good letting agent will be able to help guide you and make sure your property, and the processes around letting it, are in line with the rules, so you don't risk any penalties. Here are the key changes landlords need to be aware of:
The Renters’ Rights Act has made some fundamental changes to the tenancy system, with key features including:
An end to section 21 evictions, with a view to giving tenants greater stability and security. The purpose of this isn't to make things difficult for property owners, but to prevent bad practices amongst a minority of landlords.
The removal of fixed-term assured tenancies so renters have greater flexibility to move if their circumstances change. This is being replaced with a general two month notice period.
Support for robust grounds for possession - if a landlord has a good reason to ask a tenant to leave, then clear guidelines are laid out for courts to award possession with specified notice periods.
That said, tenants will now have a 12-month protected period at the start of their tenancy, where landlords can't evict them if they intend to move back in or sell the property.
Where a tenant "commits antisocial behaviour, is damaging the property, or falls into significant arrears", landlords are able to give notice to regain possession .
Where a tenant is in arrears, there are new increased thresholds of three months arrears and the notice period will increase to four weeks.
When it comes to rent increases, private tenants will have increased support to challenge anything they consider unreasonable. Landlords will only be able to increase rent once a year, and to the price it would realistically get if it was newly advertised. This has to be done by issuing a ‘section 13’ notice with at least two months’ notice.
With a view to preventing the practice of asking for large amounts of rent upfront to secure a tenancy, the Renters’ Rights Act prevents both landlords and letting agents from requiring or accepting any payment of rent in advance. Instead, they can only ask for one month's rent (28 days for rental periods under one month), when the tenancy is set to commence.
A new Private Rented Sector Landlord Ombudsman Service will be established, and all private landlords in England will be required to join. The service will be the go-to place for tenants to escalate a complaint, while providing landlords with guidance as well as quick and binding resolutions to many issues.
As well as the Private Rented Sector Landlord Ombudsman Service, there will be a new Private Rented Sector Database, which all landlords will be required to join. They will have to register both themselves and their properties before they market their property. The intention is to provide a single place where landlords can find guidance, show compliance, or find out about any new changes. For tenants it provides information and transparency, as well as clarity about when and how they can take action to enforce their rights.
The Renters’ Rights Act will further prohibit direct or indirect discrimination against renters who have children or who receive benefits. Referencing checks are still allowed to make sure tenancies are sustainable for renters based on affordability.
The Act will forbid 'rental bidding', by asking landlords and agents to publish an asking price for a property and prevent them from asking for, or accepting, bids above that value.
The Renters’ Rights Act will mean that landlords cannot "unreasonably withhold consent when a tenant requests to have a pet in their home". However, it does also support landlords in asking tenants to have insurance covering pet damage.
To ensure an established standard for the condition of rental properties, the Renters’ Rights Act will aim to apply a renewed Decent Homes Standard (DHS) to private rentals, similar to the one that currently exists for social housing in the UK.
For example, it will mean (but is not be limited to) the following:
Making sure properties are structurally sound (roof, walls, windows, chimneys)
Ensuring there is no damp, mould, or disrepair (with the notable extension of Awaab’s Law into the private rental sector)
Ensuring essential facilities and services are in place (heating, kitchen)
This is intended to make sure properties are safe for people to live in, and local councils will have powers to enforce improvement measures where necessary.
There's an emphasis on penalties within the Bill, with an established process for enforcement, investigation, and penalties. Local councils are being given a range of new powers to check and enforce standards or to take action against anyone who doesn't comply.
This includes:
A civil penalty of up to £7,000 for initial or minor non-compliance
A civil penalty of up to £40,000 for serious, persistent, or repeat non-compliance
Serious, persistent or repeat non-compliance may also lead to a criminal prosecution
Failure to comply with ombudsman decisions may lead to landlords being expelled from the Private Rented Sector Landlord Ombudsman scheme, followed by possible fines and penalties from the local council
Rent repayment orders (RROs) may also mean tenants can seek repayment of rent from their landlord if they don't comply with the Renters’ Rights Act
Landlord responsibilities under the new Renters' Rights Act are, unsurprisingly, to comply with the new rules and regulations. As with all things legal, not being aware of the rules won't be considered an excuse. The overarching theme is that landlords have a responsibility to provide safe living spaces and to be fair and decent in their relationship with their tenant.
The rules can, understandably, sound a little overwhelming, but it's important to remember that most landlords will already be complying with these rules. It's therefore just a question of making sure that everything is methodically documented so you feel secure and confident in how your letting property is managed.
That's where a good letting agent offers essential support, not only finding suitable tenants, but providing documents and checklists. With that, together we can work through the details and make sure your property and processes are in perfect order.
To achieve that, key responsibilities include:
Keeping documentation up to date is the best way to make sure everything is in order before a tenancy agreement starts, when it commences, and as things go along. Furthermore, the most effective way to prevent or resolve any issues is to prepare for them before they've happened. That means keeping clear and accurate records of all health and safety certificates, rent payments, arrears, breaches of tenancy and so forth. A good letting agent will make sure that they too keep a record.
Clear communication is at the heart of a good working relationship, from total transparency around fees and rent rises to anticipated changes, rent reviews, and issues. With any luck, that will mean there's no room for misunderstanding or disagreement. However, it's also important to put all communications, or a follow up to verbal communications, in writing to provide clarity. Don't forget to keep a copy on file to refer back to it if needed.
The reality is that sometimes things happen with properties - boilers break and leaks happen. No one would expect otherwise, but timely responses and repairs are very much at the heart of the Renters’ Rights Bill to ensure good living standards are maintained. The expectation is that emergency repairs that pose a health risk are addressed within 48 hours, repairs that don't present an immediate health threat but are still important need to be handled within 14 days, and less urgent repairs within 28 days. Under Awaab's Law, hazardous issues like damp and mould have very specific timescales attached to them, this includes investigating and fixing dangerous, emergency issues within 24 hours.
Responsibilities around fair eviction notices are also a key focus of the Bill. While section 21 evictions are no longer allowed, landlords must now use a Section 8 notice with valid grounds for possession. Where tenants fail to vacate at the expiration of the notice, you will need to seek a court order to evict a tenant on either mandatory or discretionary grounds. Both categories can include things like ongoing rental arrears, antisocial behaviour, owner occupation, redevelopment, holiday lets, and mortgage repossession. Each ground will have a set notice, varying from four weeks to four months.
There's a lot to take in here, so it's helpful for landlords to start with a compliance checklist. Here are some of the things you need to think about before letting your property, all of which a good letting agent will help you to address, understand, and check off before going to market. Equally, if your letting agent has management and compliance departments, they will be able to help you maintain standards throughout the time you let your property.
Register with the Private Rented Sector Landlord Ombudsman Service, when this is established (which will require additional legislation
Register the landlord and property with the Private Rented Sector Database when this is established
Check that the property meets the requirements of the Decent Homes Standard (DHS) when the new DHS has been published
Gather all essential documentation including Gas Safety Certificates, Energy Performance Certificates (EPCs), and electrical compliance reports (EICRs)
Review tenancy agreements to ensure they meet the new requirements
Keep a digital and printed, organised and up-to-date record of all communications between yourself, the agent, the tenant, and any other relevant parties
Familiarise yourself with the updated notice procedures, new grounds for possession, as well as complaint and dispute resolution process
Make sure your notice procedures are up to date
Take time to read the Renters’ Rights Act yourself and discuss any questions with your letting agent: https://bills.parliament.uk/bills/3764
Work with a letting agent you trust, with the size and scope of services to support the requirements for you and your property
No one expects you to do all of this alone. Whether you choose to manage your rental property yourself or work with a letting agent, there are valuable resources available to support you along the way. Here are a few recommendations:
Chestertons is one of London’s largest and most established estate agents, with an award-winning, ARLA-qualified, lettings team on hand to help landlords and tenants. However, we also offer a wide range of services. We have a property management team and a full-time compliance department. As a result, we are not only fully informed about the latest rules, regulations, and requirements, but ensure they are reflected in our policies and processes, and communicated to you. We are also in a position to support you in making sure your property meets and exceeds those expectations. Furthermore, if you have any questions, our team is always available to discuss them and find appropriate solutions wherever possible.
Contact your local Chestertons letting agent
The Government has put together their own Guide to the Renters’ Rights Act for you to review, you can read the latest version of the Bill on the UK Parliament website, as well as explanatory notes and other documents at the House of Commons Library. You may also find the Government's How to Let guide helpful.
Many local governments offer support services for landlords, with a particular focus on your responsibilities, health and safety standards, and how to comply with regulations like the Housing Health and Safety Rating System (HHSRS). Some provide printed or online handbooks.
If you are unsure about your position as a landlord or you are concerned about the impact of the Renters’ Rights Bill on your property, you may find it helpful to speak to a solicitor. Many firms offer support and guidance.
Yes, but only for valid reasons. The Renters' Rights Act abolishes Section 21 evictions, which previously allowed landlords to end assured shorthold tenancies (a fixed term agreement) without providing a reason. However, you can still use Section 8 notices for eviction on specific grounds.
Yes, but there are limitations on how often and by how much. Under the new rules you can only increase the rent once a year, you must give at least two months' notice, and the increase needs to be up to the market rate.
No, the bill ends so-called 'bidding', so landlords and letting agents are not allowed to encourage or accept rental offers higher than the advertised amount.
Tenants have the right to ask if they can keep a pet at the property, and landlords must not refuse unreasonably. However, if you accept pets, you can require tenants to have pet insurance in case of any potential damage.
Yes, you can ask for a tenancy deposit, but it must not be of a value that's more than five weeks' rent (six weeks if the annual rent is more than £50,000). You can also request one month's rent in advance at the commencement of the tenancy.
The Private Rented Sector Database will be a new single database, containing landlord, compliance and other property information. Landlords will need to register themselves and their property in order to be eligible to let.
The Landlord Ombudsman Service will be a new service introduced by the Act, intended to help resolve disputes between landlords and tenants. Landlords will need to join the ombudsman service before marketing their property for letting.
No, the Act further bans discrimination against tenants based on whether or not they have children or receive benefits. However, you can still ask for references and do affordability checks.
The Act is clear when it comes to blacklisting and penalties for non-compliance. This includes civil penalties of up to £7,000 for minor offences and up to £40,000 for repeat or serious offences. There is also the possibility of criminal prosecution, and being expelled from the Private Rented Sector Landlord Ombudsman scheme, which would prevent you from letting your property.
Chestertons is the premier London lettings and estate agency with more than 200 years’ experience and a team of experts offering a range of services from a full-time compliance department to valuations and management, for both long- and short-term lets. If you would like to find out more about working with Chestertons contact your local Chestertons letting agent at any time.