The Renters’ Rights Bill had its third reading in the House of Commons on 14 January 2025 and now the bill only needs to pass through the House of Lords before it receives royal assent and becomes law. We have outlined a brief overview of the recent updates below and while a date for implementing the changes is not yet set in stone, it is expected to hit the statute books later this year.
No more than 1 month’s rent demanded in advance
It is now proposed that there will be a cap on how much rent a landlord can demand in advance of securing a tenant. The advanced rent will be limited to just 1 month’s rent. This is in addition to the usual security deposit that tenants typically give at the beginning of a tenancy.
A breach of this requirement could lead to a landlord or letting agent receiving a fine of up to £5,000 and local authority enforcement action.
Death of a tenant
A guarantor will no longer be liable to pay rent following the death of a tenant.
Eviction Ground 4A – Student Tenancies
The new possession Ground 4A which allows landlords to repossess student HMOs has been limited and now can only be used where the tenancy was agreed less than 6 months in advance.
New possession ground – alternative accommodation
A new possession ground has been introduced for social landlords, which allows landlords to obtain possession for redevelopment if they provide alternative accommodation. The alternative housing will need to be affordable, in a suitable location and not overcrowded, and this should be let as an assured tenancy or equivalent. Landlords must also give prior notice to ensure they are fully aware the accommodation is provided for temporary use or redevelopment is planned.
Private rented sector Ombudsman
Landlords will contribute fees to fund the creation of the private rented sector Ombudsman, with the aim to provide both renters and landlords with access to an effective and fair dispute resolution service.
Landlord Database
Information will be required by landlords to establish a mandatory database for the private rented sector. This information will include details about the landlord and their properties, such as their name, address, contact information and any history of enforcement actions or eviction notices. Fees will be payable by landlords in order to maintain this database.
Superior landlords can be liable for Rent Repayment Orders
Superior landlords can now be liable for RROs if an offence has been committed even if the rent was not paid directly to them, but through an agent or intermediate landlord, whereas before RROs could only be made against the tenant’s immediate landlord.
The bill is still due to be debated in the House of Lords and the above updates may be amended or excluded from the bill when it is passed.
