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Join Which? MoneyNew rights for renters could come into force this spring
The Renters' Rights Bill promises stronger protections against eviction and better living standards, but rent costs are continuing to rise
The Renters’ Rights Bill has passed through the House of Commons, and is now set for its second reading in the House of Lords on 4 February.
But despite promises that the Bill will improve the rented sector for tenants, it appears likely that the cost of renting will continue to rise in 2025.
Below, we outline when the new legislation is expected to become law, what it will include, and how it could affect you.
What is included in the Renters’ Rights Bill?
The Renters' Rights Bill contains a series of reforms that the government claims will improve the private rented sector for tenants.
Some of the key plans are as follows:
- No-fault eviction ban: a ban on Section 21 ‘no-fault’ evictions is the most headline-grabbing reform in the Bill. After the first 12 months of the tenancy, landlords will still be able to evict tenants with four months notice in some circumstances, such as if they need to move in to the property themselves.
- Rent protections: rent increases will be limited to one per year. Letting agents and landlords will be required to publish an asking rent for their property and will be prohibited from accepting bids above that price.
- Lets with pets: tenants will be allowed to request to keep a pet, with landlords no longer able to impose blanket bans on animals.
- Standards of living: A new Decent Homes Standard will be introduced, along with an extension of Awaab’s Law. This will set clear deadlines for landlords to address serious issues with properties. If they fail to meet these, tenants will be able to take legal action against them.
- End of blanket bans on tenants: blanket bans on tenants who receive benefits or have children will be outlawed. These changes will initially apply in England and Wales, with plans to extend them to Scotland at a later date.
- Rented sector database: a database will be introduced to consolidate key information for landlords, tenants and local authorities.
As the Bill has progressed through the House of Commons, some amendments have been introduced. These include:
- Student housing: enhanced protections will be given to students to prevent them from feeling pressured to sign housing contracts early in the academic year.
- Ombudsman: landlords will have to pay a mandatory fee to fund a new Private Rented Sector Ombudsman that will deal with disputes.
How will the Renters' Rights Bill help tenants?
Tom Darling of the Renters’ Reform Coalition says: 'The Bill represents the biggest changes to renting in a generation. Renters will have more secure tenancies protected for at least a year, bidding wars and extortionate demands for rent in advance will be banned, and landlords won't be able to evict without reason.
'Whether renters will feel the full extent of the benefit of these changes depends on them being informed of their new rights – many are already unaware of their existing ones. For the Bill to deliver on its aims, it will need proper enforcement, which means providing local councils with the guidance and resources they will need to protect tenants and hold landlords accountable.
'Another major caveat is that affordability is not addressed by the legislation. Building homes alone won’t resolve the affordability crisis, and we’re calling on the government to set up a National Rental Affordability Commission to look at ways to get a grip on soaring rents.'
When will the Renters’ Rights Bill become law?
If the House of Lords proposes no amendments, the Bill will proceed directly to the King for royal assent. However, this is unlikely to happen.
The most likely scenario is that the Bill will move back and forth between the Lords and Commons until both agree on the final wording of the legislation.
After a long wait for reform in the sector, some experts forecast that the Bill could come into law as soon as April.
Some measures are likely to take effect immediately, while others, such as introducing the Decent Homes Standard, will take longer.
What's happening to the cost of renting?
The estate agency Hamptons regularly reports on the cost of renting. Its data shows average rents in Great Britain have risen by 31% since October 2020, increasing from £1,042 per month to £1,367.
It also found that the growth in the number of under-45s renting over the past 12 months was the fastest seen in a decade, with 149,000 people entering the rental market.
There are expectations that rent rises in 2025 will be a little slower than we've seen in the past few years, but the cost of renting is still likely to increase.
Hamptons says rents in Great Britain are currently rising by 2% year-on-year. Scotland has seen the biggest increase, at 5.5%.
How can the government help tenants buy a home?
Aneisha Beveridge of Hamptons says: ‘Higher mortgage rates have clipped the wings of many aspiring homeowners in the past couple of years, meaning Millennials increasingly outnumber older generations in the rental market. This means that renters face saving for longer and will need to earn more to borrow enough to buy a home.
‘For most of the last decade, the government’s Help to Buy scheme played an important role in transferring tenants from the rental market into home ownership.
'However, the record rise in the number of younger renters over the last year highlights the impact of higher mortgage rates and the need for a similar scheme if the government wants to achieve its ambition to help more people become homeowners.’
What to do if you can’t pay your rent
If you’re struggling to pay your rent or have already missed a payment, it’s essential to contact your landlord as soon as possible.
Doing this increases the chances of finding a solution that allows you to remain in the property.
If you are a tenant in England or Wales, you may qualify for the Debt Respite Scheme, also known as Breathing Space. This provides you a 60-day period in which your landlord won’t be able to take most enforcement action.
For more information on your options, see our guide on what to do if you can't pay your rent
