The proposed changes in Labour’s Renters’ Rights Bill (RRB) will significantly impact various aspects of the rental process in England. These modifications will reshape how rental properties are advertised, leased, and managed. From preparing a property for tenancy and securing occupants to handling day-to-day management and ending agreements, numerous regulations will be updated. Whether you are looking for a letting agent in Brighton and Hove or anywhere else choosing the right one is going to become even more crucial to your success.
The Bill is currently going through the House of Commons where it’s expected to complete the Report stage by April. There may well be more changes following that phase however below is a summary of the 12 most significant changes in the Bill so far and how they will affect different phases of the landlord experience.
1. Before Letting: New Landlord Registration and Compliance Requirements
Mandatory Registration on a New Database
Currently, England does not require landlords to register or obtain a license, unlike the rest of the UK. However, with the passing of the Renters’ Rights Bill, this will change.
A newly established digital Private Rented Sector Database will serve multiple purposes:
- Assist landlords in understanding their legal responsibilities, including updates on changing regulations.
- Allow tenants to access key details about landlords and properties, including records of violations or penalties, enabling informed rental decisions.
- Help local authorities monitor rental properties and target enforcement efforts where necessary.
Registration of both landlords and their properties will become a legal requirement.
2. Mandatory Membership in the Private Rented Sector Ombudsman
Currently, only letting agents are required to be part of a redress scheme, but the Bill will introduce a new Private Rented Sector Landlord Ombudsman.
All private landlords managing assured or regulated tenancies in England, including those using agents, must register with this scheme. The ombudsman will:
- Provide tenants with a formal avenue to lodge complaints and seek resolution.
- Offer landlords guidance to manage disputes effectively.
- Deliver impartial, legally binding resolutions to help avoid costly court battles.
3. Preparing the Property for Letting
Introduction of the Decent Homes Standard
While landlords are already obligated under the Homes (Fitness for Human Habitation) Act 2018 to ensure rental properties meet safety and habitability standards, the Bill will introduce a Decent Homes Standard for private rentals.
This will set clear minimum health and safety requirements for all rental properties. If you manage the property yourself or if you use a Brighton lettings property management agent ensuring the regulations are followed will reduce potential pitfalls during the tenancy.
4. Advertising and Securing Tenants
Prohibition of Discrimination Against Tenants with Children or Benefits
Some landlords and agents currently refuse applicants with children or those receiving benefits. Although this practice is already considered indirect discrimination, the new law will explicitly outlaw these blanket bans. We do expect however that there will be exemptions where you can decline a viewing/offer such as the property size e.g a 2 bed flat (or smaller) for a family of four would be deemed unsuitable.
5. Banning of Rental Bidding Wars
Due to high demand, some tenants engage in bidding wars to secure rental homes, often paying more than the advertised price.
The Bill will prevent this by requiring landlords and agents to publish a fixed asking rent and prohibiting them from soliciting or accepting higher offers. Bishop SureLets actively stopped encouraging bidding wars in the summer of 2023. We found that getting the correct level of rent at the first attempt was just as effective and also it is worth bearing in mind that tenants who are prepared to pay well over the odds are not always the best to work with over 12 months+ (whether we or you manage). There is often a reason they are prepared to pay well over the odds.
6. Restriction on Blanket Pet Bans
Landlords will no longer be allowed to impose outright pet bans. Tenants will have the right to request pet ownership, and landlords can only refuse with a valid reason, such as a restrictive head lease or property size limitations.
However, landlords can require tenants to obtain pet insurance to cover potential damages.
An unintended consequence of the 2019 Tenant Fees Bill was that the capped deposit of 5 weeks significantly reduced the already low number of landlords willing to accept pets. We have always found that pets really are much like their owners, so choosing the right owners remains of paramount importance. Well presented, punctual and polite applicants with a good landlord reference tend to have well behaved pets! They also tend to stay longer which means fewer void periods.
7. Tenancy Agreements
Elimination of Fixed-Term Assured Tenancies
Assured Shorthold Tenancies (ASTs) will be abolished, meaning all tenancies will automatically become periodic.
- Landlords will not be able to enforce minimum term commitments.
- Tenants can give two months’ notice to leave at any time.
- Landlords will only be able to request a maximum of one month’s rent upfront.
A real unintended consequence could be severe damage to the private landlord student rental market, which provides beds to approx 750,000 students each year and very much relies on 12 month fixed term tenancies. Without this you would imagine that students will simply rent from September to July in the first year the RRB becomes law and landlords will then either sell or move across to the professional market thereafter, which can now achieve a similar level of rent in Brighton lettings. The losers here will almost definitely be students/tenants.
8. Managing the Property During Tenancy
Implementation of Awaab’s Law
Currently, landlords must address property issues within a ‘reasonable’ timeframe.
The Bill extends Awaab’s Law, which currently applies to social housing, to private rentals. This will impose strict deadlines for landlords to investigate and address serious health hazards, such as damp and mould. We feel there may well be financial penalties added to this aspect so it is well worth considering choosing a letting agent in Brighton and Hove to look after management for you if acting quickly is a concern. Winter is the most likely time of year Awaab’s Law could be called into action.
9. Limits on Rent Increases & advance rent
Landlords will only be allowed to increase rent once a year, following a Section 13 notice, and must ensure any increase aligns with market rates.
Additionally, tenants challenging rent hikes via the First-Tier Tribunal will not risk paying more than the landlord’s proposed amount if the Tribunal rules against them.
The Tribunal has been in existence since 2008 and any tenant with rent increased by Section 13 Notice has the right to dispute via this process. This has been a very rare occurence but will likely increase after the RRB comes into being. Nevertheless we do not feel this will be a landslide of disputes, feel free to ask why, and ensuring your Brighton lettings or Hove lettings rent levels are at the correct market rate at the time of renting remains important.
There are provisions for a limit on the landlord’s ability to accept more than one month’s advance rent for a tenancy. We are unsure how likely this is to be accepted as the unintended consequences will significantly impact overseas students without Guarantors, self-employed professionals/tradespeople without their first 12 months tax return to prove income, or e.g. the first year’s return showing much lower than the 2nd years income, tenants with slight shortfalls in affordability or even those tenants with poor or adverse credit history. If this goes ahead the only real solution we see for these tenants is using existing Guarantor service companies, which charge a pretty penny. We are unsure how that will really benefit these affected tenants since it will cost them a lot more money to rent.
10. Higher Civil Penalties for Non-Compliance
Local councils currently impose fines of up to £30,000 for breaches of rental regulations. Having a personal letting agent looking after your property as if it were there own would be very useful here. Under the new Bill:
- The maximum fine for severe or repeated violations will rise to £40,000.
- Councils will gain the power to fine landlords up to £7,000 for serious hazards without needing a court order.
- Councils will also be able to issue penalties against landlords engaging in illegal evictions.
11. Ending a Tenancy
Abolition of Section 21 ‘No-Fault’ Evictions
Currently, landlords can issue a Section 21 notice after six months, providing two months’ notice without justification.
The Bill will remove Section 21, meaning landlords must provide a valid reason under Section 8 to regain possession. If the tenant refuses to vacate, a court hearing will be required.
12. Revisions to Section 8 Possession Grounds
While landlords will retain the right to reclaim properties under specific conditions, stricter notice periods will be introduced:
- Landlords seeking possession to sell or move into the property must wait at least 12 months before evicting a tenant and provide four months’ notice.
- If an eviction is due to a sale, the property cannot be re-let or marketed for 16 months from the date of notice.
- Serious rent arrears must accumulate for three months instead of two before eviction proceedings can begin, with the notice period increasing from two to four weeks.
- Landlords can still seek eviction for lease violations, such as antisocial behaviour or property damage.
Clearly ensuring you use a reputable letting agent in Brighton and Hove to find your tenants and ensuring they use a thorough vetting and referencing process with a level of personal care to you as the client will help reduce the likelihood of rent arrears or anti-social behaviour issues. Since the most common cause of homelessness is landlords selling, a fact lobbyists and the media tend to miss every time, and Section 8 Notices currently must go through the courts, there is a serious concern that the underfunded and currently unsuitable system will not be able to cope with the sheer volume. We very much hope that this issue is resolved before the RRB can go ahead, early signs are that they will.
————————————————————————————————————————————————————————————————————————————————————-
With these significant reforms, landlords must stay informed and compliant to manage their rental properties effectively. Understanding the implications of these changes will be essential for successfully navigating the evolving rental landscape. We will be posting further updates on the Renter’s Rights Bill as it progresses through the House of Lords, Commons and Parliament.
If you would like to discuss any of the above 12 key points further such as what it may mean for you, what the likely unintended consequences could be and how to prepare for that or strategies for the potential effects on your business model please feel free to contact us.
If you need any assistance letting your property in Brighton, Hove, Kemptown, Worthing and surrounding areas or if you just have some general queries please feel free to contact us on +44 (0)1273 646426 or lettings@bishopsurelets.co.uk
Hope you have a great week.