Renters' Rights Bill: Setting rents
The Renters’ Rights Bill will outlaw competitive bidding when marketing properties.
The Renters’ Rights Bill is arriving in 2025 and will prohibit the practice of rental bidding wars, putting an end to landlords and agents from encouraging or accepting rents above the advertised rate.
The regulations will also limit in-tenancy rent rises to a single annual increase capped to whichever is lowest of market rates or the amount proposed by the landlord. Landlords must give two months’ notice before any increase takes effect. Tenants can challenge this via the first-tier tribunal, as they can now, but the tribunal will be restricted to setting a maximum rent proposed by the landlord, as opposed to setting it at the market rate. Further, any rent increase can’t happen until the tribunal has made its decision should the tenant have challenged it.
It's therefore imperative that in preparation for the introduction of this legislation, landlords set the rent at the current market rate to ensure no future increase is too large to be deemed “unfair”.
Other measures in the Renters’ Rights Bill
- The “no fault” Section 21 notice will be abolished.
- All tenancies are to be rolling, periodic ones and tenants will be able to end a tenancy with two months’ notice.
- New provisions for landlords who wish to sell, move in or move family into the property. These provisions cannot be used during the first 12 months of a tenancy and 4 months’ notice is required.
- Three month’s rent arrears before the arrears grounds for possession can be used.
- No blanket bans on children or benefit claimants.
- Tenants will have the right to keep pets, although landlords can request appropriate insurance.
- All landlords will be required to register on a new national database.
- All rental properties are to reach the Decent Homes Standard.
- Strict timescales for health risks to be addressed will be introduced (Awaab’s Law).
- Local Authority enforcement powers to be strengthened and stricter penalties applied.
- Rent rises to be restricted to a single annual increase, capped at market rates (or lower) and landlords must give two months’ notice.
- A new ombudsman is to be set up to resolve disputes and reduce reliance on the courts.
Renters' Rights Bill compliance consultation
We are offering a free, no obligation Compliance Consultation to help landlords ensure that they're fully compliant with the new requirements and aren't exposed to any potential penalties. If we do identify any gaps in compliance, we will help landlords to put an action plan into place. To arrange yours, call us on 0161 511 5339 or complete our contact form.
