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The Renters Rights Bill: What We Know, What is to Come, and What Might Change?

Posted on by prateek

The UK rental market is no stranger to change, and with the Renters’ Rights Bill (RRB) on the horizon, landlords, tenants, and letting agents need to stay informed as those who do not keep up to date now, will be left in the metaphorical dust after the bill is passed.

Nothing is set in stone until the bill receives Royal Assent, so take the following as purely what we know for now, rather than gospel. Got it? Good! So, without further ado, here’s what we know so far—and what it could mean for the rental market landscape in the months to come.

Current Rental Demand & Market Trends

Before we step into the Renters Rights Bill, it is important to understand the current market landscape. Here is what we know –

  • Across the UK, there has been a ~30% drop in rental demand from tenants since January 2024.
  • Despite this decline, rents continue to rise due to a lack of available rental stock.
  • With rents up and mortgage rates down, now could be a favourable time for property investment despite the turmoil caused by the RRB.

New Sanction Checks – Effective 14th May 2025

Letting agencies will be required to conduct sanctions checks on all landlords and tenants under the Sanctions and Anti-Money Laundering Act 2018. If a guarantor is paying rent directly or interacting with the agent/landlord during the tenancy, they must also undergo checks, a big change from days past.

  • These checks will be mandatory for all letting agencies in the UK, agencies that do not comply will face fines.
  • Third-party companies such as Goodlord can manage these checks for tenants and guarantors as part of the referencing process. Check with your local agency how they intend to undertake these checks, as this might differ.
  • One major change is that AML checks will be conducted on all new landlords upon instruction.

For the official government guidance, visit: Sanctions Guidance for Letting Agents.

The Renters’ Rights Bill – What’s Coming?

After what feels like an age, we now have some potential dates to put in place. Firstly, the Bill is expected to become law between July & October, with an implementation date shortly thereafter, likely in January 2026. We are expecting the changes to take effect immediately, there will be no grace period, meaning all fixed-term Tenancies will become periodic overnight.

Key Changes Include:

Impact on Letting Fees – With fixed terms disappearing, renewal fees will all but disappear. A sliding scale fee structure may be necessary if tenants leave shortly after starting a new Tenancy. This is something we are monitoring closely and will update all of our current landlords as and when we have more information. For landlords outside of our network, do check with your letting agent too and make sure to keep in contact with them about the RRB over the coming months.

Applies to Assured Shorthold Tenancies (ASTs) Only – Corporate lets remain unaffected.

A New Single Ombudsman – Landlords must register with a centralised Ombudsman or face fines. Agents are expected to be allowed to register on behalf of Managed Landlords.

New Digital Portal – A government-run landlord portal will be introduced for compliance monitoring.

Bidding Wars Banned – It will become illegal for tenants to offer over the asking rent, regardless of their situation. We are currently anticipating this could lead to landlords pricing higher initially before adjusting down. However, advice about this approach will be given as and when the time comes. It is not something we are expecting to recommend as you may end up pricing out a lot of your target demographic.

Anti-Discrimination Measures – Landlords cannot refuse tenants based on family status, children, pets, or benefits. For most landlords, this won’t change anything, but it is something to be made aware of.

Advance Rent Restrictions – The first rent period cannot be an advance payment, but loopholes are being debated. Our advice? Avoid creative workarounds – they are unlikely to hold up in practice and could well result in fines.

Rent Reviews & Inflation – Rent increases will likely have to align with inflation. Tenants will have easy access to tribunals to challenge hikes beyond this threshold at no cost to themselves going forward.

What Happens Next?

We’ll be keeping a close eye on updates, with more details expected in the coming months. Our MARLA-qualified colleagues are attending many Propertymark conferences over the coming months where more information will be available to us and will pass relevant details on to landlords and tenants as and when is suitable.

As we have stated, until the final bill is produced, everything remains hypothetical. But one thing is certain: change is coming, and preparation is key. If you have any questions do get in touch with us. We will help you as well as we can for now. We are planning on creating plenty of videos and blogs over the coming months about the RRB so be assured we will not be leaving anyone in the dark.

For expert guidance on Renting, Letting, Buying or Selling property in Bath, contact us today.

To view our latest Sales Properties in Bath, click here – Properties for Sale in Bath (residebath.co.uk)

To view our latest Rental Properties in Bath, click here – Properties – Reside Bath

To Read Previous Renters Rights Bill Articles, click below:

https://residebath.co.uk//20241003/renters-rights-bill-what-does-it-mean-for-you/
https://residebath.co.uk//20240913/renters-rights-bill-update-what-bath-landlords-need-to-know/

For more from Reside Bath: Lettings and Estate Agency, click the icons below!

Renter’s Rights Bill – What does it mean for you?

Posted on by prateek

The renter’s rights bill was published last week. It is important to note that the following is not yet law as it must be passed through parliament. Many Landlords are apprehensive about these proposed sweeping changes to the private rental sector. So, let’s explore the bill’s key points and what this means for tenants and landlords.

THE ABOLITION OF SECTION 21 NOTICES –

Section 21 evictions have been long used by landlords as a means of terminating a tenancy agreement without any reason.  This system will be replaced by a new measure that will only permit evictions under certain conditions, such as rent arrears or the landlord wishing to sell up. Whilst this may initially be seen as restrictive, it has been on the horizon for a while as this was also a measure proposed in the Renters Rights Act, the previous bill by the conservative party, and we have previously spoken about the limited impact this change may have.

Going back to the point, landlords in Bath and beyond will now need to follow stricter legal grounds for eviction and ensure that they are treating their tenants fairly and making sure they are not displacing their tenants.

RENTAL INCREASES AND BIDDING WARS –

Rent control mechanisms in the Bill aim to standardize rent increases across the board. It has been proposed that landlords will only be allowed to raise rents once a year and tenants will have the power to challenge this, if they deem the rent increase as excessive, at a tribunal. The aim here is to prevent unfair rental hikes from being used as an undercover eviction. Despite this, Landlords will still be free to increase the rents in line with market rates.

Another significant proposed change is the prohibition of bidding wars. In recent years since the rental market demand has far exceeded supply, there has been an increase in these rental bidding wars where tenants are bidding higher than the advertised rent to secure a property they may know has been garnering a lot of interest. Under the Renters Rights Bill, this practice will be outlawed. Lettings agents and Landlords will be forced to publish a clear asking price for rent and will not be allowed to accept offers over this rate.

DECENT HOMES STANDARD AND AWAAB’S LAW –

The introduction of the Decent Homes Standard into law aims to make sure that all properties in the private rental sector abide by a minimum safety and quality standard. Landlords in Bath and beyond will need to make sure their properties comply with these standards or they will risk facing penalties. This is an expansion of the existing standard that applies to social housing, ensuring those in the private rental sector are entitled to the same level of safety and decency in their homes.

Awaab’s Law, named after a traffic case of a child who died from exposure to mould in social housing, will also be extended to the private rental sector. This will place a legal requirement on landlords to address serious health hazards within a specified time frame. Whilst this may seem like a major regulatory burden, many landlords are already maintaining these standards so will find compliance with these new regulations relatively straightforward.

RENTING WITH PETS –

Another headline from the bill is the enhanced ability for tenants to keep pets. Landlords will no longer be allowed to refuse pet requests without reasonable grounds. However, to address concerns about the potential damage a pet may cause to the property, landlords can now require pet insurance to cover any damage.

STRENGTHENED LOCAL AUTHORITY POWERS –

Local councils will be granted additional powers to enforce the rules laid out in the Bill. This included the ability to levy fines of up to £7,000 for initial breaches of the above, and escalating to £40,000 for repeat offences. Whilst these new powers may be daunting, they are largely targeted at rouge landlords, and those who already comply with existing regulations are likely to be unaffected.

If you have any further questions, then do not hesitate to get in touch and if you would like to read further into this then click the link below ⬇️

https://www.gov.uk/government/publications/guide-to-the-renters-rights-bill/82ffc7fb-64b0-4af5-a72e-c24701a5f12a

RENTERS’ RIGHTS BILL UPDATE – WHAT BATH LANDLORDS NEED TO KNOW.

Posted on by prateek

On Wednesday, Parliament had the first hearing of the Renters’ Rights Bill, the revision by Labour of the previous government’s Renters Reform Act. There was a lot of information given during the hearing so let’s take a moment to take a look at what this could mean for your investments in the future.

Let’s begin by reassuring you that nothing groundbreaking was heard in these proposals that will catch you off guard. Most of what was heard was already in the previous bill by the Conservative government. Regardless, let’s break down what was involved and what might affect you as a Bath Landlord going into the future.

THE END OF SECTION 21 (‘NO FAULT’) EVICTIONS:

The big headline in the news outlets was the abolition of Section 21 evictions. For years now, landlords have been able to issue a section 21 notice, which gives tenants two months to leave the property through no fault of their own. Many have viewed this as unfair, particularly when they have been used to displace tenants who challenge landlords’ provision of poor living conditions or challenge rental increases they deem unfair.

Landlords won’t be without power. You will still be able to evict tenants who break rules under Section 8 of the Housing Act. This will cover situations such as failure to pay rent, damage to the property, and antisocial behaviour. The main difference here between a section 21 and a section 8, is that the latter requires a court order. The concern here is that in recent years these court orders have faced significant delays. However, the government has assured us that they will work to clear the backlog and streamline the process.

RENT INCREASES AND BIDDING WARS:

Another important point heard on Wednesday’s hearing was the ban coming in on bidding wars. Over recent years, some cities have seen an influx in rental bidding wars. This has been caused by over-demand and under-supply, which has then led to two people trying to offer more than the other over the asking rate of rent and leading to ‘a bidding war’. This new piece of legislation will make it illegal to ask or accept any offers from potential tenants over the advertised rent. This may stabilise the market, but it is something to keep in mind when setting rent prices for your Bath rental property.

In addition, in-tenancy rental increases will be limited to once a year and will no longer be allowed during the period of the fixed term of a tenancy. Whilst this ban may seem restrictive, it does provide a sense of stability for tenants and in turn may encourage longer-term lets.

ENERGY EFFICIENCY AND PROPERTY STANDARDS FOR BATH LANDLORDS:

 This proposed act introduces a stricter regulation on the quality and energy efficiency of rental properties. By 2030, landlords will need to ensure that their properties are given an Energy Performance Certificate (EPC) rating of C or above. (For more information about EPC Certificates see this article: How will the new EPC rules affect Landlords? (residebath.co.uk)). This is a long-term requirement, so although it may require investment at first, there is plenty of time to plan these changes, check the regulations, and plan accordingly.

The introduction of the Decent Homes Standard into the private rental sector means that Bath Landlords will also need to ensure their properties and maintained to a certain standard. This will particularly look at hazards such as dampness and mould, a common issue among Bath properties in particular. It is a move that is aimed at improving the overall quality of rental accommodation and whilst it may mean more responsibility for more landlords across the city, most landlords will already be meeting these standards.

GOING FORWARD:

If any one of these proposed changes is causing any concern then do not hesitate to get in touch with our team, we would be happy to help you understand these changes further. Being a team in Bath affiliated closely with the governing body, Propertymark, we are continuing our professional development and are constantly keeping up to date with the latest changes. Do also keep an eye on this blog page which is continually updated with all the latest news in the property industry here in Bath and beyond.