Renters’ Rights Bill gets Royal Assent – but what happens next?

The Renters’ Rights’ Rights Bill has today received Royal Assent, heralding the biggest changes the sector has seen in generation. NRLA chief executive Ben Beadle takes a deep dive into what this means in practice and looks at the roadmap for change.

Here we have it. After more than a year in the making, the Renters’ Rights Bill has now become an Act of Parliament and moved into law.  

Of course, the question on everyone’s lips now is what happens next? 

What we do know for sure is that, now that the Bill has become an Act, its provisions for landlords in England and Wales cannot change, so the period of debate is over.  

However, for now at least, it is business as usual, with the Government set to announce its implementation timeline – the dates on which parts of the Act will come into force – during the days or weeks ahead.

What is changing?  

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 abolition of Section 21 and the introduction of new Section 8 possession grounds. 
• Both new and existing tenancies becoming periodic by default in most cases (otherwise known as the loss of the fixed term). 
• 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? 

So far ministers have been tight-lipped as to exactly when we can expect this to happen, however Housing Minister Matthew Pennycook is on record as saying landlords and tenants will be given ‘sufficient notice’. 

In our conversations with him, and the team at the Ministry of Housing, Communities and Local Government (MHCLG), we have stressed this period needs to be at least six months to allow landlords to prepare. 

What do I need to do? 

The best way to get ready is to ensure you are meeting all your obligations and that all your documentation is up to date and accessible, inspect your properties and review your tenant referencing practices. If you use an agent, you should also check they are ready. 

Existing tenancies 

Remember if you have an existing assured shorthold tenancy (AST) your tenancy will automatically convert to a periodic tenancy – you do not need to sign new documents.  

However, there are things you will need to do: 

All landlords will need to issue information about the new rules to existing tenants 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 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. Once the Government has confirmed what will need to be included in this documentation (ahead of commencement) all these forms will be available to download from the NRLA website. 

Which parts of the Act will come in later – and why?  

Other parts of the Act will need ‘secondary legislation’ – regulations put to Parliament, but which don’t require debate – to be introduced, and as such are expected to be introduced further down the line. These 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 treatment of damp and mould – with a consultation on proposals expected soon. 

All landlords will have to sign up to the database and the ombudsman when required – although, again, at present there is no detail as to when these will be introduced. 

New enforcement powers for local authorities 

One thing we do know for sure is that some of the new enforcement powers given to local authorities 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 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. 

How we can help you 

This is a huge piece of legislation which will have a major impact on the way we all do business. 

While it can, at first glance, seem daunting, I can assure you that we have a comprehensive suite of tools to help you navigate the changes up ahead and support you every step of the way as you get to grips with the new regulatory landscape. 

As soon as the Government outlines exactly what must be included in tenancy agreements – something we are expecting in the coming weeks – we will be drafting a new tenancy template for our members and a suite of new supporting documents. Keep an eye on our news site and social media channels for more. 

We are also developing a brand new proptech tool which will offer a bespoke package of documents and guidance, tailored to your needs based on the properties in your portfolio; as well as offering affordable training options, including  five courses offering deep dives into specific areas of the Act, from student lets to enforcement.  

Thousands of you have already taken the training with new dates added to meet demand. 

You can also check out our Renters’ Rights Bill Hub for guidance on what you can do to prepare now, and join one of our exclusive member webinars scheduled to take place fortnightly throughout the transition period. You can sign up for the first of these now. 

With compliance taking centre stage there is no better time to take advantage of our compliance arm Safe2 and property management platform Portfolio. Safe2 can organise inspection repairs and safety certificates at the click of a button and send automated reminders when they are up for renewal.  

Portfolio, which can be accessed via your NRLA account, includes a secure space store all your certificates and documentation, vital when it comes to meeting your new obligations.  

And last, but by no-means least, we’d love to see you at our UK Housing Conference, which will be held in Liverpool next month. With the raft of legislative change coming our way there really is no better time to get ahead of the game by coming along to find out what our expert speakers have to say about the new legislation and how to face the new challenges head on.