This week, investors have been eager to find out what’s in Labour’s newly proposed Renters’ Rights Bill.
There’s a vast amount in there, but you can read raw text of the bill if you want every last detail.
What’s not included?
Let’s start with the good news: There’s no mention of rent controls, and the accompanying documents reaffirm this stance. Additionally, the rumoured “hardship test” for evictions didn’t make the cut.
What’s changing with evictions?
As expected, all tenancies will be indefinite and can only be terminated for valid reasons. One such reason is if the landlord plans to sell the property or move in themselves. However, this can’t be done within the first year of the tenancy, and four months’ notice will be required.
For rent arrears, the threshold for serious arrears (which require a judge to grant possession) has been increased from two months to three months.
Rent increases?
No major surprises here. Rent can only be raised once per year and only to match the market rate. If tenants feel the increase exceeds the market rate, they can challenge it in a tribunal. This process delays the increase, as the new rent only applies from the date of the tribunal’s decision.
Bidding wars?
The biggest surprise in the bill is the ban on landlords and agents asking for or accepting bids above the advertised rent. In high-demand areas, rents might see a one-off increase, creating a de facto “offers up to” system.
When will this take effect?
The bill still needs to pass through Parliament, but with Labour’s strong majority, it could move quickly if prioritised. Summer 2025 has been floated as a potential start date. When implemented, all tenancies (even existing ones) will automatically shift to the new format.
There are other provisions, like the property database and Ombudsman system, which we’ve heard about before. These will likely have later implementation dates.
What’s the overall takeaway?
There definitely are changes, and tenant selection will become even more critical during the initial rollout. However, there aren’t any drastic differences and should mainly weed out the bad and unprepared landlords. After years of uncertainty, it’s a relief to finally have some clarity (pending any amendments) and begin planning accordingly.
