The Bill may face further amendments before final approval. Both the House of Commons and the House of Lords need to agree on the final wording, and this back-and-forth is expected to begin on 8 September. Once both sides are satisfied, the Bill will receive Royal Assent.
The next step is "commencement," which is when the main rules of the new Act come into force. There isn't a set timetable for this; some changes could happen straight away, while others may take months.
Tenancy reform
The government has made it clear that the new tenancy rules will come into force all at once. This includes:
- Moving all tenancies to periodic (rolling) contracts
- Abolishing Section 21 "no-fault" evictions
- Introducing new grounds for possession under Section 8
We expect these tenancy changes to be introduced first, but no dates have been confirmed yet. It's also not clear whether landlords will still be able to use Section 21 notices that were served before the Bill officially starts.
Once Section 21 is abolished, landlords who need possession will have to rely on the new Section 8 grounds, and if necessary, go through the court to process to prove their case.
Rent in advance
The Bill restricts advance rent payments to one month, despite arguments for exceptions for tenants who lack income, credit history, or guarantors.
Rental Bidding
Landlords and agents will have to advertise a set asking rent for each property. It will be illegal to invite or accept offers above this amount.
New and revised possession grounds
Notice periods for eviction notices will increase – usually to either 4 weeks or 4 months, depending on the reason for possession.
A new rule will also stop landlords from re-letting a property straight away after claiming they needed to evict in order to move in themselves or to sell. At present, the Lords have agreed to reduce this "no reletting" period from 12 months to 6 months, but the Commons still needs to confirm.
Rent reviews and appeals
Rent increases are limited to once a year, and will need to be communicated to tenants using a standard template form, which the UK Government will provide once the Bill has passed.
Private Rented Sector Landlord Ombudsman
Every private landlord in England will have to join the new Ombudsman scheme, even if they use an agent. This will be a free service for tenants, The Ombudsman will be able to order landlords to hand over information, carry out repairs, or pay compensation. Councils will also have powers to act against landlords who don't sign up.
The UK Government has stated that the Ombudsman will be introduced 'as soon as possible' after Royal Assent, and landlords will be given sufficient notice of the date by which they need to sign up. There is likely to be an annual fee to help cover the operating costs.
Private Rented Sector Database
Landlords will be legally required to register themselves and their properties on a new database. You won't be able to market or let a property until you're registered. There will also be a fee for registering. Landlords will need to be registered on the database to use any possession grounds, except those for anti-social behaviour (7A and 14).
The design of the database, including information that will be collected and made publicly available, is still under discussion and will require secondary legislation to be enacted before it can be introduced.
Decent Homes Standard and 'Awaab's Law'
The Bill will extend existing social housing rules to the private rented sector:
- Decent Homes Standard (DHS): sets minimum property standards.
- Awaab's Law: requires landlords to fix serious hazards like damp and mould within a set timeframe.
Parliament is holding a separate consultation on the DHS, which indicates that it will be fully implemented by either 2035 or 2037.
Pets in Rental Homes
Landlords must consider requests to keep a pet in the rented property and cannot unreasonably refuse.
The original idea to require pet insurance has been dropped, Instead, an amendment (still awaiting final approval) would let landlords ask for an extra deposit of up to three weeks' rent.
Ending Discrimination
It will become illegal to automatically refuse tenants just because they have children or receive benefits. This applies across England, Scotland, and Wales.
Landlords will still be able to refuse a tenancy if there's a genuine reason (for example, overcrowding in a one-bedroom flat).
The same ban will apply to any new mortgage, lease, or insurance terms written after the legislation comes into force.
Local authority enforcement and rent repayment orders
Civil penalties will be extended, and a package of investigatory powers will be given to local authorities, along with a new duty to report on enforcement activity.
- Fines up to £7,000 for first breaches
- Fines up to £40,000 for serious or repeat breaches
- Rent repayment orders
- In extreme cases, criminal convictions
The evidence bar for issuing fines to landlords was increased during the Lords Committee Stage. If this change is included in the final Bill, local authorities will have to prove 'beyond a reasonable doubt' that a landlord had broken the rules before imposing a fine.
- Mandy Crubilier Property Management Manager