With the introduction of the Renters’ Rights Bill, the private rental sector in the UK is set for some big changes. Designed to strengthen tenant protections and improve housing standards, the new bill also brings new landlord rules, some of which may affect how you manage properties, communicate with tenants, and even structure your insurance.
In this article, we’ll explore what the Renters’ Rights Bill is, how it could impact landlords with new landlord rules, and what steps you can take to stay compliant.
What is the Renters’ Rights Bill?
The Renters’ Rights Bill is a piece of legislation that is designed to deliver changes to the Private Rented Sector (PRS). The main goal of the Renters’ Rights Bill is to strengthen tenants rights to the 8.6 million renters in the UK. It aims to give more security when tenants rent out a property, as well as more freedom to leave substandard properties.
Originally, the bill was introduced by the previous Conservative government when it was called the Renters Reform Bill. The Renters Reform Bill faced delays and in the end wasn’t fully enacted. The current Labour government has backed the Renters Reform bill, but has changed the name to the Renters’ Rights Bill, and are looking to build on it, whilst introducing stricter regulations.
New landlord rules
The Renters’ Rights Bill introduces a range of new landlord rules aimed at improving tenants rights in the private rental sector. For landlords, this means adapting to tighter regulations and being more proactive in how their properties are managed. From changes to eviction procedures to requirements around property conditions, it’s important to keep up with what’s changing. The new landlord rules include:
- Section 21 to be abolished: Landlords will no longer be able to evict tenants without a reason, and this applies to both new and existing tenancies, effectively ending so-called “no-fault” evictions.
- Changes to Section 8 eviction grounds: To balance the removal of Section 21, the government will expand and revise both mandatory and discretionary grounds for possession.
- Abolishing fixed-term tenancies: All tenancies will automatically become periodic, giving tenants more flexibility to leave with proper notice, and reducing long-term contractual tie-ins.
- Stricter rules on rent increases: With the shift to periodic tenancies, landlords can only raise rent using a Section 13 notice, and only once every 12 months.
- A stop to rental bidding wars: Landlords and letting agents will be banned from encouraging or accepting offers above the listed rent price.
- A new landlord ombudsman: An independent body will be introduced to help resolve disputes between landlords and tenants fairly and efficiently.
- Anti-discrimination measures: Landlords will be prohibited from rejecting tenants based on whether they receive benefits or have children.
- Apply the decent homes standard: The Decent Homes Standard will apply across the private rented sector, requiring landlords to ensure their properties meet basic living conditions.
- Private rented sector database introduced: A national register will record details about landlords and their properties, increasing transparency and encouraging compliance.
When will the Renters’ Rights Bill become law?
The parliament process of the Renters’ Rights Bill is expected to be completed by summer 2025, followed by a statutory delay before enforcement. There is an estimated start date for the new rules which is approximately October 2025 to January 2026.
The government aims to prioritise the most significant changes, like scrapping Section 21 and moving all tenancies to a periodic tenancies, which form the core of the new landlord rules. These early changes aim to strengthen tenants rights, with additional elements of the Renters Reform Bill set to be introduced gradually over time.
How landlords can prepare for the Renters’ Rights Bill
These new landlord rules will mean that landlords will need to prepare by:
- Stay informed with updates on the Bill’s progress. Keeping up with each phase will help you stay compliant with new landlord rules.
- Plan rent reviews more strategically and consider the annual limitation. With stricter tenants rights, rent increases are limited to once per year, so it’s important to budget carefully and plan around expected income.
- Ensure rent increases comply with new regulations. Non-compliance could lead to disputes or legal challenges, which could impact claims if issues arise that involve liability or loss of rent.
- Consider the potential for tribunal involvement if increases are challenged. Check whether your landlord insurance includes legal expenses cover, which may help if disputes escalate.
- Be prepared to justify proposed increases whilst referencing local market data. Transparency helps avoid disputes, and can support your position if a claim or complaint arises.
- Review and revise your documentation such as tenancy agreements and templates for notices. Some insurance providers require up-to-date legal documents for claims involving eviction or damage.
- Enhance property management practices. Staying organised with maintenance and record keeping can support claims and reduce the risk of policy breaches.
- Carry out financial planning which takes into account the upcoming changes. This is especially important if you rely on rental income covered under a landlord insurance loss-of-rent policy.
- Ensure full legal compliance with upcoming obligations. Remaining compliant helps protect your position if you ever need to rely on liability or legal cover in your insurance policy.
How Nest GI can help
With the Renters’ Rights Bill bringing significant new landlord rules, having the right insurance in place has never been more important. We’ll help you review your existing cover, make sure it aligns with upcoming legislation, and recommend tailored policies that reflect the evolving risks.
As an independent broker, we work with a wide range of insurers to find the right fit for you. If you need expert guidance or simply want to ensure your policy is future ready, get in contact with us today.
