Important Legal Update – Renters Rights Bill & Landlord Compliance
I’m sure you will have seen recent coverage in the press regarding the upcoming Renters Rights Bill, which represents one of the most significant overhauls of landlord legislation in recent history. With the Bill now in its final stages in Parliament, it’s crucial that landlords are fully informed and prepared for the changes that lie ahead.
Whether you are a managed or non-managed client, it is important that you remain compliant and protected as these new obligations come into effect. For our fully managed landlords, we will be handling these changes on your behalf. If you are a non-managed landlord, we strongly encourage you to contact us to discuss the benefits of switching to our managed service.
Letting a property is becoming increasingly complex, and the risks of non-compliance are growing. The Renters Rights Bill—alongside obligations such as Right to Rent checks, sanctions screening, and digital tax reporting—makes professional support more important than ever.
Key Provisions in the Renters Rights Bill
- Abolition of Section 21 ("No Fault") Evictions: Landlords will only be able to regain possession using strengthened grounds under Section 8, such as rent arrears, anti-social behaviour, or selling the property.
- End of Fixed-Term Tenancies: All tenancies will move to a rolling (periodic) structure, allowing tenants to give two months’ notice at any time after an initial period—removing the certainty of fixed terms.
- Strengthened Grounds for Possession: Section 8 grounds have been expanded to cover repeated serious rent arrears, anti-social behaviour, and other specific circumstances.
- Mandatory Property Portal & Ombudsman Scheme: Landlords must register each property on a new digital Property Portal and join a Private Renters' Ombudsman scheme.
- Increased Compliance Standards & Enforcement: Local authorities will have broader powers to enforce property standards under the Decent Homes Standard.
- Stronger Rent Repayment Orders (RROs): The Bill increases the potential rent repayment claim period to up to 24 months, where a landlord is in breach of key legal responsibilities.
- Tenant Pet Rights: Tenants will have the right to request permission to keep pets – which the landlord cannot unreasonably refuse, the Bill will contain no additional pet protections for landlords.
Housing Minister Matthew Pennycook, MP, explained that the UK Government is satisfied that the existing maximum deposit of 5 weeks’ rent is sufficient to cover any risk of damage. If damages did exceed the deposit, landlords can apply to the small claims court to recover the balance.
- Annual Rent Review & Tribunal Challenge Rights: Rent increases will be limited to once per year and must be in line with the local market rate. Tenants will be able to challenge any proposed rent increase at a tribunal, which will assess the case using comparable rental evidence to determine a fair amount.
How We Can Help
For our managed landlords, we will:
- Review and update tenancy documentation
- Advise on possession processes under the new Section 8 rules
- Assist you to meet your compliance requirements
- Register properties on the Government Property Portal (subject to a fee and written instructions)
- Manage tenant communications and legal updates
- Track and respond to phase-in dates and regulations
Please note: If you require us to complete the Property Portal registration, this will be subject to an additional charge, which will be confirmed once Government guidance is published. Written consent will be required before this is undertaken.
If you're currently a non-managed landlord, we recommend contacting us to discuss switching to our managed service to reduce risk and ensure full legal compliance.
Other Legal Change: Making Tax Digital
From April 2026, landlords must begin complying with HMRC’s Making Tax Digital (MTD) for Income Tax. The phased rollout is as follows:
- April 2026 – landlords earning over £50,000
- April 2027 – extended to those earning £30,000 or more
- April 2028 – expected to include landlords earning £20,000+
The government is also consulting on lowering the threshold further and expanding the scope to limited companies and partnerships.
Under making tax digital, landlords must keep digital records and submit quarterly updates using approved software. If this may apply to you, we advise discussing it with your accountant well in advance. We are happy to recommend an accountant if needed.
Useful Resources
- Government Guide to the Bill: https://www.gov.uk/government/publications/guide-to-the-renters-rights-bill
- Safeagent’s Legal Summary: https://safeagents.co.uk/wp-content/uploads/2024/10/safeagent-Renters-Rights-Bill-v1-11.10.24.pdf
We will continue to provide updates as more details and deadlines are released.
If you would like tailored advice or to discuss your management options, please don’t hesitate to get in touch.