This legislation poses several new challenges, requirements and expectations for landlords across the United Kingdom.

Amongst other key changes, the Renter’s Rights Bill will end Section 21 evictions for both new and existing tenancies, meaning landlords will no longer be able to evict a tenant without reason.

Landlords will still be able to evict tenants if they have a statutory ground for doing so, such as if the landlord intends to sell the property, the tenant is in rent arrears or commits anti-social behaviour, but they will only be able to do so using the amended Section 8 process.  

A new Private Rented Sector Landlord Ombudsman will also be introduced to “provide quick and binding resolutions” about complaints, alongside a mandatory databaseto help landlords understand their legal obligations and demonstrate compliance with them.

The bill will also seek to end bidding wars by preventing landlords from accepting rents higher than those originally advertised when a property is marketed, whilst it will no longer be possible for rent increases to be written into contracts to prevent mid-tenancy hikes, leaving landlords only able to raise rent once a year at the market rate via a statutory process. The Government believe this will help prevent spiralling rents ans tenants (and prospective tenants) from being pitted against one , which has become increasingly common.

Finally, instead of running for a set period – for example, 12 months – all new tenancies will be ‘periodic’ from the outset but with a protected period for the first 12 months. This means that the tenancy is, in effect, open-ended, and whilst tenants will be able to end their tenancy with two months’ notice at any time, there will only be limited circumstances(e.g. rent arrears)  that a landlord will be able to end it inside the first 12 months.

Overall, the bill means that the requirements and constraints on landlords are increasing drastically (the ones mentioned above only being a selection)and there will be a myriad of new regulations that they must comply with to avoid the risk of severe repercussions.

Whilst some of the new requirements for landlords could theoretically result in criminal prosecution for breaches of them, local authorities are to be granted wide powers to impose significant Civil Penalties (fines) for non-compliance, whilst landlords will also be at risk of Rent Repayment Orders (RROs) being applied for by tenants or local authorities in many circumstances also.

There are several steps landlords can take now to ensure their properties are ready in time to best deal with these changes.

Review your property portfolio

Firstly, if you are a landlord with multiple properties, now is the time to conduct a prompt review of your property portfolio. This is imperative so that you understand and can prepare for the implications of the new regime and ensure you are compliant from day one.

Taking the time now to review the tenancy documents to establish any current or anticipated future non-compliance so that you can remedy the same and evidence your compliance is vital. Also if you have long-term plans for your properties—such as selling, refurbishing, or moving in—keeping clear records of these intentions could be crucial in supporting any future possession claims in the next few years.

Identify tenants close to the end of fixed term

If you have tenants whose fixed term has already expired or is going to expire before the abolition of Section 21 notices, decide whether you want to serve a Section 21 notice upon them whilst you are still able.

If you are happy for your tenant to remain in the property remember that any renewal is likely to be retrospectively impacted when the changes are implemented (e.g. a contractual fixed term won’t be of any effect).

Also consider trying to agree a new rent with any existing tenants who are outside of the fixed term that you wish to keep before the new rules about rent increases become law.

Ensure database compliance

The new national database will require all private landlords to register their properties. This will require further administration, so having your information in order now will save you the hassle later.

Start by gathering all essential documentation well in advance, including Gas Safety Certificates, Energy Performance Certificates (EPCs), and electrical compliance reports (EICRs). These records will not only be necessary for registration but will also streamline your ability to make possession claims when needed.

Onboard with the Ombudsman

Register with the Ombudsman Scheme as soon as it becomes available, as participation will be mandatory. It is also important to keep detailed records of all interactions with your tenants, including maintenance requests and any agreements made (e.g. concerning repairs). A well-documented history can be invaluable in preventing disputes and ensuring smooth resolutions should any issues arise.

The Renters’ Rights Bill is a landmark piece of legislation. By acting now, you can become fully compliant ahead of time, maintain and build strong tenant and local authority relationships, and ensure the long-term success of your portfolio in a rapidly evolving rental market.

The Renter’s Rights Bill isn’t something to be afraid of but is something to be properly prepared for. If you have any concerns or uncertainties then engaging the services of a good managing agent or solicitor could be invaluable.

Patrick Ansell is a Property litigation expert at Taylor Rose Law Firm