Legal News | 14.01.25

Renters’ Rights – What to Expect in 2025

Significant changes to the law about rented homes are now passing through Parliament with the government’s Renters’ Rights Bill (“the Bill”).

As a public Bill presented to Parliament by the government, it has the full backing of the government’s large majority. The Bill is at third reading stage and is expected to become law before the Easter recess 2025.

When passed into law, the Bill is to take effect immediately without any transition.  This means that planning for its implementation needs to start now.

The key changes are:

Fixed term tenancies abolished

• All existing assured and assured short hold tenancies will be abolished.
• Existing assured short hold tenancies will automatically become assured periodic tenancies.
• Existing assured tenancies will automatically become assured periodic tenancies.
• All new tenancies are to be assured periodic tenancies – any provision for a fixed term will have no effect.  New “rolling” periodic tenancies will continue indefinitely unless terminated by:
  • a tenant on two months’ notice;
  • a landlord on a statutory ground for termination.

Alterations to landlord’s grounds for possession

These include:

• Possessions proceedings of assured shorthold tenancies under Section 21 of the Housing Act 1988 on the so called “No fault” basis will be abolished;
• Possession proceedings due to rent arrears under Section 8 of the Act will require 13 weeks of rent arrears instead of the current eight weeks (if rent is paid weekly/fortnightly) and three months of rent arrears instead of the current two months (if rent is paid monthly);
• A new ground for possession proceedings where a landlord intends to sell a freehold or leasehold interest in the property or grant a lease for a term of more than 21 years.

Creation of a new private rented sector database

• Landlords will be required to register with this new database with an active landlord entry.  Without registration, a landlord will be unable to seek a possession order.

 Rent increases

• Landlords will be required to give tenants two months’ notice of rent increases, which will be limited to once a year at market rent.  Tenancies will not include rent review clauses.  Tenants will be able to challenge rent increases in the First Tier Tribunal, if they consider they exceed market rent.

 New anti-discrimination provisions

• These are aimed at assisting tenants with children or  who are in receipt of benefits although landlords will still be able to choose the tenant that they believe is the best choice.

 New right for tenants to request consent to a pet

• Landlords will not be able to unreasonably refuse a request for consent to a pet, both by existing renters and new renters.

If you would like further guidance on any aspect of this Bill please contact Melissa Meredith in our Dispute Resolution team at melissa.meredith@wansbroughs.com | 01380 733300.