As many landlords will be aware, the Renters’ Rights Bill 2024 received Royal Assent earlier this year, ushering in one of the most significant overhauls of residential tenancy law in over a decade. While the Bill seeks to balance the rights of landlords and tenants, it places considerable new obligations on landlords—backed by enhanced enforcement powers and financial penalties for non-compliance.
Below, we outline the key provisions of the Bill that landlords must be mindful of, and the potential ramifications for failing to meet these new statutory requirements.
Key Obligations Under the Renters’ Rights Bill
1. Abolition of Section 21 ‘No-Fault’ Evictions
Perhaps the most publicised aspect of the Bill is the abolition of Section 21 evictions. Landlords will no longer be able to terminate an assured shorthold tenancy without giving a reason. Instead, possession will only be granted on specific grounds set out in the legislation.
Landlords must rely on valid grounds (e.g. persistent rent arrears, anti-social behaviour, or intent to sell the property). Procedural compliance is critical, failure to serve the correct notice or follow due process may lead to possession claims being struck out and costs awarded against landlords.
2. Mandatory Registration with the Private Rented Sector Portal
The Bill introduces a new national landlord registration requirement via the Private Rented Sector (PRS) Portal. All private landlords must register and upload details of their properties, tenancy agreements, safety certificates, and other compliance documentation.
Letting a property without being registered may constitute a criminal offence. Local authorities are empowered to issue civil penalties with repeat or serious non-compliance potentially resulting in banning orders and referral to the newly empowered Private Rented Sector Ombudsman.
3. Tenancy Standardisation and Indefinite Tenancies
All tenancies will now be periodic by default (i.e., with no fixed end date), removing fixed-term tenancies altogether. Tenants will have the right to give two months’ notice to leave at any time, while landlords will be restricted to seeking possession only under the statutory grounds.
As a result of the above, business models based on short-term or seasonal lets may require reconsideration, alongside additional reliance will be placed on lawful and substantiated grounds for regaining possession.
4. Decent Homes Standard Compliance
Landlords must ensure properties are free from serious hazards, in a reasonable state of repair, and have adequate heating and insulation.
Local authorities have increased inspection powers and can serve improvement notices, with civil penalties and Rent Repayment Orders potentially being imposed for non-compliance. Tenants may also seek redress through the Ombudsman, which has the authority to award compensation and enforce corrective action.
5. Mandatory Use of the Private Rented Sector Ombudsman
All landlords must register with the new PRS Ombudsman scheme. The Ombudsman has the authority to resolve disputes, issue binding decisions, and award compensation. A landlord’s failure to register may result in civil penalties and possible exclusion from operating as a landlord. It should be noted that the Ombudsman’s decisions are enforceable and can be used in subsequent tribunal or court proceedings.
6. Prohibition of Rent Bidding (Sections 55 & 56)
Sections 55 and 56 of the Bill prohibit landlords and letting agents from engaging in “rent bidding,” a practice whereby prospective tenants are encouraged—or allowed—to offer more than the advertised rent in order to secure a tenancy. The legislation mandates that all rental properties must be advertised with a fixed asking rent, and that offers above this level must not be solicited or accepted.
Landlords must ensure all advertisements clearly state the rental price and avoid any language that invites competitive offers. Breach of these provisions may result in financial penalties and complaints to the Ombudsman.
Letting agents must also update their practices to ensure compliance, and landlords should review agency contracts accordingly.
7. Restrictions on Rent Increases (Sections 7 & 8)
Sections 7 and 8 introduce tighter controls on rent increases within periodic tenancies. Rent may only be increased once every 12 months and must be done through a prescribed process, including a formal written notice with a minimum two-month lead time. The tenant will have the right to challenge any proposed increase through the First-tier Tribunal if they believe it to be excessive.
Landlords should review their internal processes to ensure rent reviews are diarised and notice periods strictly observed, attempting to increase rent outside the statutory process may invalidate the increase and expose the landlord to legal challenge.
Potential Ramifications for Non-Compliance
The Bill significantly increases the risk exposure for non-compliant landlords. Some of the more serious consequences include:
- Civil Penalties: For each offence for various breaches (e.g. failure to register, non-compliance with property standards).
- Criminal Prosecution: For repeated or deliberate breaches, particularly where tenants’ health or safety is endangered.
- Rent Repayment Orders: Tenants may be awarded up to 12 months’ rent.
- Banning Orders: Issued against landlords considered ‘not fit and proper’, prohibiting further lettings.
- Loss of Possession Rights: Failure to comply with registration or tenancy documentation requirements may bar landlords from regaining possession, even where statutory grounds exist.
What Should Landlords Do Now?
While much of the legislation is due to be implemented in a phased manner across the latter stages of 2025, proactive preparation is key. We recommend that landlords take the following steps:
- Audit your existing tenancies to assess compliance with property standards and documentation requirements.
- Register with the PRS Portal once operational, and begin gathering necessary documents for upload.
- Review your eviction and rent review procedures to ensure alignment with the new statutory framework.
- Engage with legal and property management professionals to update your tenancy agreements and internal practices.
The Renters’ Rights Bill 2024 represents a fundamental shift in the rental landscape. While the legislation aims to improve security and quality for tenants, it also introduces substantial legal and financial exposure for landlords who fail to adapt.
Get in Touch
Mario Mastantuono is a solicitor in the Dispute Resolution Team at Fisher Jones Greenwood, specialising in business disputes. We are here to guide you through every step, including actively assisting landlords with compliance audits, registration support, and tenancy restructuring. For further advice, please contact Mario or one of our team in our Colchester, Clacton or Chelmsford offices on 08081 891 596, or via our online enquiry form.