The Renters’ Rights Bill (the Bill) is on the cusp of becoming law, representing the most profound change to the English private rental sector in decades. As a Sages Properties investor or landlord, understanding these reforms isn’t just about compliance—it’s about protecting your investment and ensuring the smooth, profitable management of your portfolio moving forward.

The Bill, which is nearing Royal Assent (expected late 2025), is designed to establish a fairer balance between landlords and tenants, focusing on greater security of tenure and improved property standards.

Key Reforms: What’s Changing?

The core of the new legislation introduces fundamental changes to how tenancies are structured and how landlords can regain possession.

1. End of ‘No-Fault’ Evictions and New Grounds for Possession

The single most significant change is the abolition of Section 21 ‘no-fault’ evictions. Landlords will no longer be able to end a tenancy simply by giving two months’ notice without a specified reason.

• New Eviction Route: All repossessions will now use the Section 8 process, which has been expanded to include new mandatory grounds.

• Mandatory Grounds for Landlords: Courts must grant possession if the landlord proves one of the mandatory grounds, including:

  • Selling the Property: A new ground allowing repossession if the landlord genuinely intends to sell the property. This typically requires four months’ notice and a 12-month re-letting restriction to prevent abuse.

  • Landlord or Family Member Moving In: Allows the landlord or a close family member to occupy the property as their principal home. This also requires four months’ notice and may have a 12-month re-letting restriction.

  • Serious Rent Arrears: The mandatory ground is strengthened, typically requiring three months’ rent arrears at the time of notice and hearing. A new ground may also be introduced for persistent arrears.

  • Anti-Social Behaviour: Stronger grounds for dealing with unacceptable tenant conduct.

• Periodic Tenancies Only: All existing Assured Shorthold Tenancies (ASTs) will convert to periodic assured tenancies (rolling contracts), and new tenancies will be periodic from day one. Tenants will only need to give two months’ notice to leave.

2. Higher Standards for Property Condition: The Decent Homes Standard

The Decent Homes Standard (DHS), previously for social housing, is being extended to the private rented sector. This will create legally enforceable minimum quality benchmarks for all private rental properties.

• Four Key Criteria: A property must:

  1. Be free from serious health and safety hazards (e.g., damp, mould, fire risks) under the Housing Health and Safety Rating System (HHSRS).

  2. Be in a reasonable state of repair.

  3. Have reasonably modern facilities and services (e.g., a reasonably modern kitchen and bathroom).

  4. Provide a reasonable degree of thermal comfort (i.e., effective heating and insulation).

• Awaab’s Law: This will be extended to the private sector, requiring landlords and property managers to fix serious hazards like damp and mould within strict timeframes.

3. Fairer Rental Practices

The Bill introduces rules to improve fairness in the market and limit exploitative practices.

• Banning Rental Bidding Wars: Landlords and agents are prohibited from inviting or accepting rental offers above the advertised price.

• Rent Increase Restrictions: Rent increases are restricted to once per year. Landlords must use the statutory Section 13 process and give two months’ notice.

• Tenant Tribunal Right: Tenants gain the right to challenge proposed rent increases at the First-Tier Tribunal if they believe the increase is above the market rate, without the fear of a retaliatory Section 21 eviction.

4. Tenant Protections (Pets and Retaliatory Evictions)

The Bill provides new tenant rights that landlords must accommodate.

• Right to Request a Pet: Landlords must not unreasonably refuse a tenant’s written request to keep a pet. They can, however, require the tenant to take out suitable pet damage insurance.

• Protection Against Retaliatory Eviction: Stronger protections will be in place to prevent landlords from evicting tenants for complaining about property condition or requesting repairs.

Action Plan for Sages Properties Investors and Landlords

Compliance with the new law will be mandatory, and being proactive is the best way to safeguard your investment, ensure continuous rental income, and avoid potential penalties or tenant disputes.

Phase 1: Immediate Preparation (Property Audit) 🛠️

Phase 2: Operational Readiness (Process & Documentation) 📋

Phase 3: Registration and Redress (New Obligations) 

The Bill introduces two new statutory requirements:

1. Private Rented Sector (PRS) Landlord Database (Property Portal): All landlords will be required to register their properties on a new national database.

2. PRS Ombudsman: All landlords will be required to join a mandatory ombudsman scheme to provide a free, independent dispute resolution service for tenants.

• Action: Your property manager will be responsible for ensuring your properties are registered on the new portal and with the ombudsman, but you should prepare to provide all necessary documentation and information.

The Role of Property Managers and Surveyors

As professional partners, their roles become more critical than ever under the new regime.

For Property Managers

Your managers will be responsible for the day-to-day enforcement and administration of the new law. This includes:

• Diligence and Documentation: Maintaining robust processes and thorough record-keeping for all repairs, inspections, and tenant communications is crucial. Errors or delays could lead to financial penalties or compensation claims from landlords.

• Timely Repairs: Implementing an efficient system for tenants to report issues and for coordinating surveyors and contractors to meet the strict deadlines under Awaab’s Law.

• Legal Clarity: Advising you on the new grounds for possession and ensuring the correct notice periods and procedures are followed every time.

For Surveyors

Surveyors will face a surge in demand as landlords seek professional assessments to confirm compliance with the Decent Homes Standard.

• Expert Evidence: Surveyors must be thorough and well-documented in their inspections, as their reports may be required as evidence in tribunal or court disputes concerning property condition.

• Unbiased Advice: Providing timely, detailed, and unbiased advice on a property’s condition and required remedial works is vital for both landlords and property managers to plan effectively.

Turning Change into Opportunity

While the Renters’ Rights Bill introduces stringent new requirements, it also provides an opportunity to future-proof your investment. Properties that are well-maintained, professionally managed, and fully compliant with the new standards will be the most attractive to high-quality tenants and retain maximum value.

Sages Properties and our partners are committed to keeping you informed and guiding you through every stage of this transition. By taking proactive steps now, you ensure your portfolio not only complies with the law but sets the benchmark for quality and fairness in the modern rental market.