The Renters’ Rights Bill: What It Means and What Happens Next
The Renters’ Rights Bill has just passed another important stage in the House of Commons. Here’s a straightforward look at what’s happened so far and what it could mean for landlords, tenants, and anyone thinking about selling their rental property.
What Is the Renters’ Rights Bill?
The Labour Government introduced the Renters’ Rights Bill in September 2024. Its main goal is to improve the renting experience for tenants while setting clear rules for landlords. The Bill has been debated and amended in the House of Commons, with MPs voting on changes during the final stage on January 14. Most of the original proposals are expected to become law.
The key proposals include:
- Making all tenancies periodic, meaning they continue on a rolling basis.
- Abolishing Section 21 ‘no-fault’ evictions, so tenants can stay in their homes as long as they follow the rules.
- Introducing stricter rules on rent increases, allowing pets, and improving property standards.
- Creating a national database of rental properties.
- Setting up an ombudsman service to handle complaints.
What Does This Mean for Landlords and Tenants?
Here are the main points to know:
- Section 21 evictions will be abolished
Tenants will have more security and can stay in their homes unless they break the rules of their tenancy. Landlords will only be able to take back a property if they plan to sell it or move in themselves. - Limits on advance rent payments
Landlords and agents will only be allowed to ask for one month’s rent in advance. Security deposits will still be allowed, but this rule is new and wasn’t part of the original Bill.
What Happens Next?
The Bill now moves to the House of Lords for further debate and voting. Once that’s complete, it will need Royal Assent to officially become law.
There’s no set date yet, but because the Bill is moving quickly through the process, it could become law in the next few months.
What Should Landlords Do Now?
While some details, like the database and ombudsman system, are still being worked out, landlords should prepare for significant changes in 2025.
David Wilson, Head of Lettings and Investments at Home Finders, says:
“The changes introduced by the Renters’ Rights Bill will no doubt feel a little overwhelming for some, but rest assured, our team is here to help. We’re ready to answer any questions and are proactively putting measures in place to support both landlords and tenants through this transition.”
If you’re a landlord and need advice about how these changes could affect your property, we’re here to help.
📩 Get in touch with us today for guidance and support.
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