The Renters’ Rights Bill - What You Need to Know - GBH Law

It represents one of the biggest shake-ups of housing law in decades. Its clear aim is to shift the balance of power towards tenants, giving them more security and stability.

This article looks at two of the most significant changes: how landlords can bring a tenancy
to an end, and how rent increases will work in the future.

The End of Section 21 and Assured Shorthold Tenancies

One of the headline reforms is the abolition of “Section 21” notices – often (and misleadingly)
called “no-fault evictions.”

● Section 21 of the Housing Act 1988, along with the legal concept of assured
shorthold tenancies (ASTs), will disappear entirely.

● Currently, ASTs allow landlords to regain possession of their property at the end of a
fixed term without having to give a reason. This will no longer be possible.

What’s changing:

● Fixed-term tenancies will be abolished. All rental agreements will instead roll on
automatically in short monthly cycles.

● Tenants will still be able to leave by giving notice. Landlords, however, will only be
able to end the tenancy on specific legal grounds.

● These grounds will largely mirror the existing law but with some additions. The most
relevant for private landlords will be:

• if the landlord intends to sell the property; or
• if the landlord or a close family member intends to move in.

● These new grounds can only be used after the first 12 months of a tenancy, and the
landlord must give at least four months’ notice.

Rent arrears:

● Landlords will still be able to seek possession for serious rent arrears. However, the
threshold will rise from two to three months’ unpaid rent.

● The minimum notice period in these cases will also increase from two weeks to four
weeks.

Transitional Arrangements for Existing Section 21 Notices

A big question is what happens to landlords who have already served a Section 21 notice
when the new law takes effect. The Bill makes transitional arrangements:

● If a Section 21 notice has been served and court proceedings have started: The
new rules will not apply until those proceedings are finished. The landlord can still
obtain possession if the notice was valid.

● If a Section 21 notice has been served but proceedings have not started: The
landlord can still issue a claim, but only for a limited time. At most, this will be three
months after the new law takes effect (and in some cases less, depending on when
the notice was served).

Rent Reviews and Increases

The new law does not introduce strict rent controls, landlords can still set the initial rent for a
property. However, it does introduce stronger rights for tenants to challenge rent levels.

● Within the first six months of a tenancy, a tenant can ask the Tribunal to review the
rent. The Tribunal will then decide what the “open market rent” should be –
essentially, what a property of that type could reasonably be expected to rent for.

● Tenants can make this application even immediately after agreeing the rent, which is
unusual.

Ongoing increases:

● Landlords will still be able to raise rents annually, but only up to open-market levels.

● If a tenant disputes an increase, the Tribunal will decide. Importantly:

• The Tribunal cannot set a higher rent than the landlord originally
  proposed, even if the market level is higher.
• Any increase only takes effect once the Tribunal makes its decision.
• The Tribunal can delay the start of an increase for up to two more
  months.

This means tenants have a real incentive to challenge proposed rent rises, even if only to
delay them.

What This Means in Practice

These reforms will undoubtedly increase security for tenants and limit the ability of landlords
to end tenancies or raise rents quickly. While landlords still retain some rights – such as
selling the property or moving in themselves – the bar is now higher, and notice periods are
longer.

It does not amount to full-blown “rent control” in the sense of government-set caps, but it will
give tenants more tools to push back against unaffordable increases.
If you would like to discuss any of the issues raised above, or require advice relating
to housing possession, please contact our team here.