Renters’ Rights Bill – what you need to know
The Renters’ Rights Bill is an extremely important piece of legislation for anyone who rents their home. For those in England (with some elements also covering Wales and Scotland), it represents one of the biggest changes in well over thirty years, and it’s important to be aware of what it might mean to you if you are a renter.
The UK Government’s aim is to give renters much greater security and stability so they can stay in their homes for longer.
Propertymark has worked closely with the UK Government to help ensure the new legislation is fair for both tenants, who rightly should have access to a safe and secure property, and landlords to ensure they have the ability to deliver a sustainable mix of high-quality properties to let.
Renting a home has become extremely popular across the last twenty years, so it’s vital there is strong and dynamic legislation that keeps pace with the challenges faced by an ever-growing population. Achieving the right balance to keep everything running smoothly is complex, especially with such unevenness within the wider economy directly affecting the affordability of many renters and the economics of being a landlord.
The legislation is now at Committee Stage in the House of Lords and is very close to becoming law. Committee Stage involves Peers in the Lords examining the separate parts of a Bill line by line for around eight days (this link says eight days: Committee stage (Lords) – UK Parliament), but sometimes proceedings can last much longer than that.
What is the Renters’ Rights Bill?
The new legislation is designed to bring greater levels of protection for those who choose to rent their home across England, with measures to prevent discrimination against renters on benefits or with children also applicable in Wales and Scotland.
The new law aims to end ‘no fault’ evictions, often referred to as ‘Section 21’ proceedings, whereby a landlord can obtain a court order to regain possession of their property without needing any specific reason. The change in law also aims to ensure it is easier for those with children and pets to reside at rented properties. In addition, there are plans to introduce a ‘Decent Homes Standard’ to safeguard a higher minimum legal standard for properties within the rental system.
The new Bill will also extend Awaab’s Law to the private rental sector. Awaab’s Law was implemented for the social rented homes following the death of Awaab Ishak, who died at the age of two when a social house he and his family were living in suffered from extreme issues with mould.
The Bill also aims to ensure there are new rules that landlords must comply with to guarantee their tenants have a better experience of renting, while at the same time ensuring that landlords can regain their properties in extreme circumstances.
Backdoor evictions should become a thing of the past if the Renters’ Rights Bill becomes law in its current format, as tenants will be better protected from excessive rent increases.
There will also be a Private Rented Sector Ombudsman and a Private Rented Sector Database to help implement fairness for all parties. Like all Ombudsman services, it will aim to independently resolve disputes. The planned Landlord Database will help keep track of landlords and their legal obligations to operate.
Tenants receiving benefits and those who have children and/or pets will no longer face discrimination.
In addition, any possible bidding wars between potential tenants will be outlawed meaning landlords and letting agents will be legally required to publish an asking rent for their property. They will also be banned from asking for, encouraging, or accepting any bids above this price.
Local councils’ enforcement powers will be increased by expanding civil penalties and a fresh package of investigatory powers and rent repayment orders will also be introduced for landlords.
Why the legislative process means the Renters’ Rights Bill is likely to become law
There are many steps all new pieces of legislation must take before they ever pass into law. Prior to final ‘Committee Stage’ in the House of Lords, which is where the Renters’ Right Bill is currently due on 22 April 2025, proposed new laws must pass through a First Reading in the House of Commons, which is a formality that involves no debate, and then a Second Reading, which is the first opportunity for MPs to debate the main principles of the Bill.
All new Bills must be fully examined by a Public Bill Committee that involves MPs interviewing witnesses and experts from outside Parliament. It will then pass on to Report Stage for MPs to consider further amendments on the floor of the House of Commons prior to a Third Reading in the same parliamentary chamber to debate the contents of the legislation.
As of 7 April 2025, Labour has 403 seats in the House of Commons, which gives them a majority of 157, and that normally makes it easy for a party to pass legislation through the Commons due to them having a massive majority, hence why the Bill was able to pass each stage of the UK’s main parliamentary body relatively quickly.
Once a Bill reaches the House of Lords, it then goes through each stage again in the same order, but the legislation will, of course, be examined by appointed Peers instead of elected MPs, which means the Renters’ Rights Bill will head towards Report Stage and a Third Reading in the House of Lords before there are final considerations and the King then signs it into law, known as Royal Assent.
What changes to the proposed Renters’ Rights Bill has Propertymark campaigned for?
One provision that is contained in the Renters’ Rights Bill is ending fixed-term tenancies. That may sound good in principle, but for students, it could have unintended negative consequences.
On 20 October 2024, Propertymark reiterated its concerns to the Secretary of State for Education, the Rt Hon Bridget Phillipson MP, that periodic tenancies (where there is no fixed end date) could result in graduates staying at a property, which would then affect new students being left with fewer properties to rent or with no place to stay in while embarking on their studies.
Propertymark is campaigning for fixed-term tenancies to remain an option for student landlords especially.
The Renters’ Rights Bill will also mean that people may be prevented from paying for rent in advance for a duration of more than one month. This is an aspect that could seriously impact access to housing for those who are both willing and able to pay ahead of time but might not achieve a traditional monthly rental agreement due to past credit history searches.
The professional body also suggested that the UK Government consider the effect any delay in welfare payments could have on rent arrears, and to regard the financial consequences of this legislation on the supply of homes to rent when the Bill had its Second Reading in the House of Lords on 4 February 2025.
Nathan Emerson, CEO at Propertymark, comments:
“The Renters’ Rights Bill will bring about huge changes to the way people rent across the country. Both tenants and landlords need to understand the new rules and how it will impact them. Propertymark member agents are trained and qualified to stay on top of legislation and how it works in practice. Landlords should start to plan now about the long-term use of their property and tenants need to understand that their tenancy and the rules around leaving a rented property are changing. As the legislation starts to come in later this year, tenants and landlords should look for the logo and a certified and accredited Propertymark agent who can give them the protection and peace of mind they need to understand what happens next.”
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