Renters Rights Bill 2025
With the bill now at the Committee Stage, it is likely that we will see this made Law this year.
Key amendments to the bill outlined below following ARLA Property Mark update dated 14th January 2025
Limiting rent in advance
By preventing tenants from paying rent upfront the UK Government will potentially, reduce the housing options available to financially vulnerable people.
People on fixed incomes like pensions, those with lower incomes, the self-employed, and overseas students may all have challenges passing referencing and affordability checks. Paying a larger proportion of rent at the start of a tenancy gives tenants an alternative way to evidence their ability to sustain a tenancy, giving landlords confidence in renting.
Housing Minister Matthew Pennycook, MP, stated that landlords will still have the ability to request one month’s rent in advance, alongside a security deposit of up to 5 or 6 weeks rent. He went on to say that the use of referencing and affordability checks, and the ability to request guarantors, should be enough to give landlords confidence.
Eviction grounds for student tenancies
The Bill currently only makes eviction Ground 4A available for student HMOs if the tenancy is signed less than six months before its start date. However, it is common practice for student agreements to be signed up to a year in advance, driven by students who want to ensure they have secured accommodation in line with the predictable pattern of the academic year.
If Ground 4A cannot be used, it could interfere with landlords regaining possession of their property ahead of each academic year, impacting future tenancies.
Furthermore, this Ground does not apply to one- and two-bedroom (non-HMO) properties rented to students, leading to serious concern that property owners will not have enough security to continue offering their properties to students, reducing the availability of decent accommodation for young people in university towns.
Landlord fees to fund Ombudsman
Fees paid by landlords will directly fund the creation and work of the private rented sector Ombudsman, providing renters and landlords with access to an effective and fair dispute resolution service.
Guarantors cannot be liable after a tenant dies
This amendment prevents an individual guarantor from being asked to pay rent for a property after the person (or people) they are standing guarantor for dies. Housing Secretary Angela Rayner commented that this will safeguard bereaved guarantors, often family members, against financial hardship during a time of grief.
Private rental sector database
The UK Government has now set out the information that will be required about the landlord and the properties they rent out. This includes the name, address and contact details of the landlord and managing agent, details of any enforcement action taken against the landlord or agent, and details of any previous eviction notices that have been served to a tenant. Registration will be compulsory, and costs will be covered by fees landlords pay.
Home adaptations for disabled tenants
Although this amendment was withdrawn before the vote, Pennycook gave assurances that it would be discussed further at the next stage. The proposal would allow disabled tenants to have a right to appeal if landlords do not agree to adaptations recommended by a local authority Home Assessment, as long as the recommendations are ‘reasonable adjustments’ under the Equalities Act 2010.
Examples of reasonable adjustments include installing ramps or grab rails, changing taps and light switches, widening doorways, or installing motion-activated lighting near doorways and paths.
Conclusion
Our conclusion remains that The Renters Rights Bill marks a significant step forward in advancing tenant protections, addressing many of the challenges renters face in today’s housing market. For landlords who already stick to the rules and regulations, the bill will have minimal impact and may even offer benefits such as market stability and enhanced property values. By continuing to adhere to best practices and maintaining open communication with tenants, responsible landlords can navigate the changes smoothly and contribute to a fairer and more equitable rental market.
