The Renters’ Rights Bill - Why preparing for change is key to Minimising Risk
I have been decidedly quiet on LinkedIn for the last 4 or 5 days to reflect and take stock of what is happening in the PRS, and to be honest, rest my eyes from all the reading I have been doing over the last 7 months – well more if we factor in the Bill from the previous government.
Research, reading, analysing, interpreting, formatting courses, drafting questions, drafting answers, writing blogs, attending legal seminars & courses, speaking at events, delivering webinars & courses are all part of the remit and require planning. The last time my colleagues and I encountered this volume of work was with the introduction of the Housing Act 2004. I had just embarked on my career in the PRS and sat back whilst my colleagues and barrister / mentor / friend / oracle did the heavy lifting.
21 years on, I am a little bit more switched on, and the legislative change feels different. The HA 2004 was pivotal in its own right and of course bought with it challenges letting agents and landlords thought (not all of them clearly) would cause the housing market to collapse. As with most legislation, some of it was positive and most definitely needed, other elements, not so much.
Since July 2024, when the Renters’ Rights Bill was announced, my colleagues and I have had a LOT of discussions with our clients – initially about whether the government would change the law and now discussions that are more pressing since the 2nd Reading of the Bill in the House of Lords.
Discussions relate to change management – implementing change & the impact of change to the impact on lettings businesses – how fee structures will change, how they will charge fees, even how they pay commission to negotiators.
I had a lengthy discussion with a client this afternoon who said that they were already suffering from ‘renters’ rights bill fatigue’. They said that they were inundated with invites to webinars, newsletters, information about the Bill so much so that they no longer knew what to listen to next. However, they also told me that they had set aside 3 days to plan for the future – setting aside that kind of time is a luxury, but it is most definitely a necessity.
So, a slight pause is required, a deep breath and we can start to plan.
We know what the ‘blueprint’ of the legislation looks like, we have a fundamental understanding of the key areas of the Bill but its the fear of this unknown that causes panic.
With significant reforms on the horizon, it is essential to start putting plans in place now.
For the last 18 years, our mantra has been ‘Maximise Potential, Minimise Risk’. Why? Because we understand that preparedness will prevent risk of financial loss, legal disputes, and operational challenges. Failure to set put an action plan into play will culminate in significant high levels of stress.
Therefore, the key to navigating this transition smoothly is by taking proactive steps to ensure compliance, mitigate risks, and safeguard financial stability.
1. Avoid Non-Compliance
With Section 21 being abolished, landlords will need to rely on Section 8, which requires a valid, legally justified reason for possession claims. This means landlords must clearly document tenant breaches and the evidence requires for the grounds being relied upon to support possession cases. The likelihood is that evictions will take longer, increasing the risk of rent arrears and legal costs, so discussions must be had with insurers and referencing companies.
Letting agents and Landlords must have a very clear understanding of the new grounds for possession and if unsure, seek the support of a legal firm to ensure that the Section 8 notice, when the time comes, is properly served.
The introduction of the Private Rented Sector Database and Landlord Ombudsman Scheme will mean stricter enforcement should landlords fail to comply. Landlords must ensure that their ‘ducks are in a row’ and that all relevant documents are in place so when the database is fully operational, the relevant data required can be promptly uploaded.
Hopefully there will not be a repeat of trying to purchase Oasis tickets with the database crashing on day 1 of launch!
2. Risk Management
The move to Assured Periodic Tenancies means landlords will no longer be able to offer fixed term tenancies and existing Assured Shorthold Tenancies will need to be ‘converted’ to Assured Periodic Tenancies. There has been reference to the government allowing a ‘transitionary period’ to allow for these changes to be implemented, but that will not be the case. There will be time to prepare for implementing change between the Bill being granted Royal Assent and the date the Renters’ Rights Act is enforced.
Without proper planning, landlords could struggle to implement these changes and will flounder.
3. Updating Tenancy Agreements and Policies
With a tenant’s right to request pets, landlords must ensure their tenancy agreements clearly outline tenant responsibilities for cleaning and pet-related damage. Any valid reasons for denying pet requests, e.g., property suitability, leasehold restrictions, must be reasonable and communicated to the tenant within statutory time-frames. Additional requirements for insurance that covers damage caused by pets must be properly sourced and clearly understood by the landlord.
Letting agents must also ensure new contracts and relevant template letters, reflect rent increases, notice periods, and new dispute resolution processes.
4. Property Condition & The Decent Homes Standard
Landlords will be required to adhere to the Decent Homes Standard and must ensure the property has no Category 1 Hazards. Any required upgrades, repairs, or major improvements should be budgeted for in advance.
It is likely that the Decent Homes Standard & Awaabs’Law will be introduced under secondary legislation given that the Government will be introducing Awaabs’ Law into the Social Housing Sector in a phased approach this October.
5. Preparing for Increased Disputes and Tenant Complaints
The Bill is a significant piece of Housing Reform, and it has been well and truly publicised across many different media and news platforms, therefore, tenants will be aware they can challenge the landlord with much greater ease than ever before.
Landlords must keep detailed records of tenant communications, repairs, and rent payments.
Letting agents must ensure transparency in rent increases and property management.
Disputes should be resolved early to prevent escalation to the Ombudsman.
What now?
To stay ahead and minimise risk, here’s what landlords and letting agents should focus on:
1. Review and Update Tenancy Agreements
2. Strengthen Legal Knowledge and Procedures
3. Reassess Financial Planning
4. Review agency Terms and Conditions of Business
5. Check Property Standards and Plan for Upgrades
6. Prepare a Tenant Communication Strategy
We have been asked even at this point whether the Renters’ Rights Bill will become Law. Answer? We reiterate - Yes, most definitely.
Some additional questions we have addressed during webinars and on training courses: -
How will the Bill affect letting agents and their business?
Will landlords with existing tenancies face restrictions under Section 8 when relying on Grounds 1, 1A and 1B when legislation comes into force?
Will landlords be able to increase rent prior to the Act being enforced?
Under the new regime, will tenants be permitted to serve notice on the day they take possession?
When will the Private Rented Sector Database be made available to landlords? What will be the cost to register?
How will local authorities navigate these legislative changes?
The Bill introduces some of the biggest changes in decades for the private rented sector.
Landlords and letting agents who act now will be well-prepared for the transition, while those who delay could face legal, financial, and operational difficulties.
The best approach is to be proactive - review contracts, strengthen financial plans, ensure property compliance, and communicate clearly with tenants. By preparing early, landlords and letting agents can minimise risk and maintain profitability.
For further information on our courses and GLM Membership contact – info@guild-let.co.uk – 01992 479974
Our courses do not just deal with legislation, they deal with a very practical approach to managing change and implementing new processes, systems, and paperwork in a very measured and stress-free way.
Susie Crolla