Important Updates on Changes to the Rental Market

Amardeep Lall - Head of Lettings

Recent developments, particularly the progression of the Renters Rights Bill through Parliament, indicate that by mid-2025 we may see substantial updates to how the sector is regulated. These are expected to include the repeal of Section 21 (no-fault eviction) and the potential removal of fixed-term tenancies, among other reforms.

Key Changes to Note

New Possession Grounds

With the abolishment of the Section 21, landlords will retain the right to regain possession of their property under revised grounds. This will ensure that landlords have reasonable means to repossess properties when there is a genuine need. The bill introduces specific scenarios where landlords can seek possession of their property:

Landlord or Family Moving in or Selling: Requires four month’s notice after the first 12 months.

Breach of Tenancy Terms: Evictions for serious breaches, such as antisocial behaviour or unpaid rent, will require 2–4 weeks notice, depending on the breach.

Repeated Rent Arrears: Tenants with recurring arrears, even if paid later, can be evicted with four weeks notice if arrears reach three months.

Transition to Rolling Periodic Tenancies

Fixed terms will be replaced with rolling tenancies. Tenants can leave with two month’s notice, while landlords must provide four month’s notice after the first year to regain possession for valid reasons, such as selling or moving in. Tenants are also protected from eviction during the first 12 months.

Annual Rent Increases

Landlords will be permitted to raise rents annually up to the market rate, which will be defined as the going rate for a comparable newly advertised property. We will continue to support our managed clients in issuing a Section 13 notice for any rent adjustments, ensuring tenants receive adequate notice whilst ensuring market rate rents are achieved for our clients.

Banning Bidding Wars

To promote fairness, agents will no longer be able to accept offers higher than the advertised rent or encourage bidding wars for rental properties. Our goal is always to secure the best-suited tenant for your property based on affordability checks, and we will continue to uphold this approach.

Decent Homes Standard

A proposed Decent Homes Standard will require that rental properties meet a minimum standard of quality and safety. This aligns with our longstanding belief that tenants should have access to well-maintained, safe homes. Additionally, the requirement for property managers to be qualified will likely be enforced, along with a mandate for landlords to register with an Ombudsman scheme to resolve tenant complaints. We are here to guide our clients through these potential new requirements and ensure their compliance.

Tenant Rights Regarding Pets

Tenants may soon have strengthened rights to request pets, and landlords will be required to consider these requests. To safeguard properties, landlords will be permitted to request pet insurance from tenants to cover potential damages. We are actively liaising with insurance providers to ensure appropriate coverage options are available.

Landlord Register

All landlords will need to register on the Landlords database - a check must be carried out by the agent to make sure they are registered prior to marketing a property ‘TO LET’. Fines of upto £7000 will be applied to noncompliant Landlords and Agents.

Impact for Self-Managing Landlords

For those managing their properties independently, these changes introduce additional compliance requirements and greater oversight. The shift to rolling tenancies and the restrictions on rent increases and eviction processes may require adjustments to current management practices. Self-managing landlords will need to be vigilant with tenant interactions and maintain thorough records to ensure adherence to the new standards. The possession is evidence based and without this it will be difficult for you to evict and gain possession. The bill’s aim is to balance tenant security with landlord rights, creating a fairer and more transparent rental market. While the increased regulations may seem demanding, they also offer stability and clearer guidelines for managing your rental property.

As always, we are here to support you with any questions or assistance you may need in navigating these upcoming changes. If you would like to discuss the bill’s potential impact further or explore the management option, please feel free to contact my team at South Leeds on 0113 2203465 or North Leeds Lettings on 0113 2369888.