The Renters’ Rights Bill has now received Royal Assent, marking a significant milestone in reforming the private rented sector across England and Wales.

The new Renters’ Rights Act introduces sweeping changes designed to strengthen tenant protections and raise housing standards, including the abolition of Section 21 ‘no-fault’ evictions, the introduction of a Decent Homes Standard, new limits on rent in advance, and a mandatory landlord database and Ombudsman. Landlords, agents, and tenants alike should prepare now for the upcoming commencement dates and ensure their tenancy agreements, compliance processes, and property standards are ready for the changes ahead.

The new Act will introduce:

• A new standard tenancy for private renting.
• A Decent Homes Standard and new rules on responding to hazards.
• Changes to advertising and letting practices.
• Limits on when and how much rent can be taken in advance.
• The removal of Section 21 notices for possession.
• Changes to Section 8 grounds for possession.
• Changes to rent increases.
• A new private rented sector database and Ombudsman that landlords must sign up to.
• New offences and civil penalties for landlords who don’t comply with these rules.

What will happen first? 

Some new local authority enforcement powers will be available in two months’ time. But in terms of major reforms, the first will relate to tenancy changes. When the Act comes into force – its ‘commencement date’, these will include:

• The removal of Section 21 notices and the introduction of new Section 8 possession grounds.
• Both new and existing tenancies become periodic tenancies (otherwise known as the loss of the fixed term).
• Introduction of the new requirement to provide a written tenancy agreement.
• Bans on taking rent in advance and allowing rental bidding wars.
• Changes to rent increases.

When will this happen? 

We have not yet been told, but Housing Minister Matthew Pennycook is on record as saying landlords and tenants will be given ‘sufficient notice’. It is hoped that landlords will be given at least six months to prepare for the changes.

What do landlords need to do? 

Inspect your properties and review your tenant referencing practices. If you use an agent, you should also check that they are ready. Ensure that the paperwork is all compliant.

Existing tenancies 

All landlords will need to be issued with information about the new rules for existing changes within the first month of the commencement date. Much like the ‘How to Rent’ guide, we expect the Government will make a document available on the GOV.UK website.

If you don’t have a written tenancy agreement, you will need to provide one.

Student landlords will also need to make sure they inform tenants within the first month if they want to use the student possession ground, to ensure they can get their properties back at the end of the academic year.

If you have an unexpired Section 21 (or Section 8 notice under former grounds), you should also be aware that it will only be valid for a possession claim in the first three months.

New tenancies 

All new tenancies will require updated tenancy agreements and related documents and the Government will confirm what will need to be included in this documentation ahead of commencement.

Other parts of the Act will come in later

Other parts of the Act will need ‘secondary legislation’, which will include:.

• The introduction of a new landlord ombudsman
• The development of a private rented sector (PRS) database including landlords’ details.
• The extension of a Decent Homes Standard into the PRS. The proposed deadline for full introduction is currently 2036; however, the requirement for the property to be free of category 1 hazards (the most dangerous) may come much earlier.
• The introduction of Awaab’s Law, regarding the treatment of damp and mould, with a consultation on proposals expected soon.

New enforcement powers for local authorities 

New enforcement powers will be given to local authorities, which will come into force two months from now, as this date is written into the legislation itself.

From then, local authorities will also be able to demand documentary evidence to prove compliance and will have the power to enter business premises or rented residential accommodation without a warrant in certain cases.

Other new rules coming in because of the Act include:

• The introduction of 15 new offences that can see landlords issued with civil penalties.
• An increase in the maximum civil penalty fine that can be imposed of up to £40,000.
• The introduction of six new offences that can result in landlords facing a rent repayment order.
• An increase in the maximum claim period for such orders, with tenants now able to claim back up to two years of rent payments for breaches.

As councils will be in breach of the law if they fail to enforce the new rules, it is likely private rented housing will be a high priority for enforcement teams across England and Wales, so it is more important than ever that you are on top of all your legal obligations and have the documents to prove it.

For more information and support with property needs, please contact Anna Duffy, Head of Property at DTM Legal on 0151 321 0000 or via email at anna.duffy@dtmlegal.com.