How the Renters Rights Bill will impact Landlords in East London 

The countdown to the Renters Rights Bill 2025 becoming law continues. If you are an east London landlord, now is the time to get ready for the planned changes affecting your rental property.

The new regulations currently going through Parliament will have a major impact on every landlord in the area, from Newham to Redbridge. So, whether you are letting a flat in Stratford or family home in Dagenham, it is vital to equip yourself with the essential knowledge in advance to protect your investment. Across East London latest statistics show demand is still running at high levels, with approximately 12 prospective tenants for each vacant rental coming on the market.

So, keep reading for an overview of the measures in the new bill to equip you to make changes to your strategy, plan for the future, and explore the rules that concern you most in more detail.

What is the Renters Rights Bill?

Labour put forward the bill in January 2024, superseding the Conservative government’s Renters (Reform) Bill to meet their manifesto commitments, aiming to transform the sector by giving tenants greater security, healthier and safer homes, and introducing rent increase restrictions. The ambition is to create a more straightforward system for both landlords and tenants.

After making progress through the first stages of Parliament, the bill has now reached the House of Lords for the Committee stage due to finish by 14 May, where Peers can propose changes and discuss the plans. It is predicted Royal Assent will happen in June or July, and the Renters Rights Bill will become law this summer (but the Government has not announced an exact timeline yet). It is also possible extra time may be given for landlords, agents and tenants to comply with the new laws. 

The Renters’ Rights Bill explained for landlords

With east London landlords facing the biggest shake up in the private rented sector landscape for forty years here is a useful summary of the key measures of the landmark legislation with an explanatory notes checklist. 

Abolition of Section 21 ‘No-Fault’ evictions 

Section 21 eviction notices will no longer be allowed when the new legislation passes into law. Instead, landlords will have to use specific eviction grounds under Section 8. This will include grounds for repossessing the property to sell it or live in it.

If you have already started the Section 21 process when the new regulations come in landlords will have three months to take legal action.  

Revised re-possession grounds 

If you want to sell or move into your property you will need to give tenants four months’ notice after they have lived there for at least eight months, and do so using a Section 8 notice. If you use these grounds for repossession you will have to wait 12 months before the property can be relet.

In the case of difficult situations, such as rent arrears of over three months, or antisocial behaviour, it will be variable and could be as short as two weeks. To repossess, landlords can use Section 8 of the Housing Act 1988. Your tenants will need to give two months’ notice to end their agreement, but can do so at any point in the tenancy. 

Moving to periodic tenancies 

Under these agreements, tenants have the right to stay in the rented property provided they do not break the contract terms and there will be no fixed end date.  The tenancy will run indefinitely until the tenant decides to leave or the landlord has a valid ground for repossession. 

On the day the bill becomes law all new and existing tenancies will become rolling periodic contracts and fixed term tenancies will end.  You will not be able to serve notice unless the tenant wants to leave, or you have acceptable possession grounds.

Restrictions on rent increases & rent in advance

You will only be able to raise your rents once a year if it is in line with market levels, and tenants will be able to challenge higher rents in a tribunal if they think it is not fair. When you are advertising your property, it is important to decide on the asking rental price carefully as you will not be able to take any increased offers after it has been advertised.

Landlords will have to give two months’ notice of any rent increase and do so by a Section 13 notice. If the tenant then appeals it may take up to six months before increases are implemented.

Rent in advance is also facing new restrictions. For example, once a tenancy agreement has been signed, landlords can only require up to one month’s rent in advance before the tenancy commences (or 28 days’ rent for tenancies with rental periods of less than one month).

Decent homes standard introduced 

The Government has announced Awaab’s Law will come into force in October 25th for the social housing sector, to ensure action is taken to remedy any dangerous mould or damp conditions. The new bill will extend the regulations to the private sector.

Landlords will need to remedy any property faults which pose a health risk such as damp or mould promptly. It is expected the timeframes will reflect the consultation recommendations, which are 24 hours for emergency repairs, and 21 days for less urgent work.

Exact details of the plans to improve the quality of rental homes meeting basic standards of warmth and safety have not yet been finalised, but the proposals say landlords may need to update their properties due to the age of certain facilities like the kitchen and bathroom.

Creation of a Landlord database 

A new digital property database intended as a one stop shop for landlords. It will help them access key guidance, and they will need to pay a joining fee. Prospective tenants will be able check on legal compliance and any past banning orders, though the extent of what is visible to tenants is still being decided.

Information about you and the rental property you are letting out will be logged on the register and is there for the council to access, should they need to do so. 

Establishment of a Landlord Ombudsman 

The new ombudsman unbiased service will be set up to resolve disputes, avoiding the expense and time of going to court. All landlords with existing, assured shorthold tenancies will need to join the ombudsman service before they market a property.

Tenants will be able to complain directly to the ombudsman instead of using the courts or council and landlords will have to comply with the decisions. 

Bans on discrimination in advertising

Landlords will no longer be able to advertise against tenants receiving benefits (‘no DSS’), or who have children. This is currently quite a common practice within the sector, giving landlords and letting agents a lot of autonomy over who they accept. This is due to be banned.

You will no longer be able to exclude tenants on the basis of them receiving benefits or having children. Instead, affordability and health and safety are the main points you will have to consider.

Enhanced Local Authority Enforcement 

If a local authority finds a landlord or agent has broken the new laws they can face a fine of up to £7000, and this rises to £40,000 for repeated offences and can lead to a criminal prosecution. It is crucial landlords abide by the regulations and register at the start and comply with the regulations.

Even if you are using a lettings agent you will need to apply to join the register. Rent repayment orders can be made by the tribunals against landlords who fail to follow the regulations. Currently, enforcement measures such as mandatory landlord licensing in Newham will remain in place, while other powers of enforcement and regulation are added on top.

Strengthened Rent Repayment Orders 

Tenants will be able to claim up to two years’ rent repayments where landlords have broken housing laws through Rent Repayment Orders (RROs). Offences covered would include unlawful eviction or letting your property less than 12 months after the tenants left if you had stated you were planning to sell up. 

Rights to keep pets extended

Tenants will gain rights to ask to keep a pet in their rental property, and landlords are obliged to consider all requests. They must offer a specific and valid reason why the pet is not allowed to be kept at the property.

But you can ask your tenant to take out insurance covering any possible costs the pet may cause with breakages or damage. The Tenant Fees Act 2019 will be amended to allow for these extra costs.

What does the Renters’ Right Bill impact assessment indicate?

An impact assessment report published by the Government in November assessed the economic, business and social effects of the planned reforms and landlord concerns. It concluded the changes would result in costs of £12 a year for each property for landlords and £1700 a year for letting agents. Pet owning tenants would have to pay an extra £7 a year. Evidence on housing supply showed it had remained stable since 2013 and was not likely to be affected by the new bill.

Analysis of the proposed enforcement actions on rental property indicated that there would be a 25% drop in serious hazards, and that tenant households were predicted to benefit by £28 a year. The report concluded that a reduction in tenant turnover would also benefit landlords through reduced letting costs.

Updates & progress on the Renters’ Rights Bill 

Peers in the House of Lords debated the impact of the bill during the second reading on the 4th February, raising concerns before it moved to the Committee stage for a detailed examination on 22 April. Over 30 peers discussed the legislation vigorously raising worries landlords would sell up with 45% of landlords owning just one rental and the supply of rental properties would decrease.

Others argued for rent controls and dropping the guarantor. Difficulties with student tenancies were highlighted including the timing and the Government said purpose-built student accommodation would be excluded.

Conclusion

With the increase in tenant’s rights, and the move to greater risks of fines and enforcement action, landlords will need to prepare now with expert guidance from professionals in the field. Acting in good time will mean you can avoid unnecessary stress and worry in the run up to the new property laws.

If tenancies go wrong and you need to act to repossess your property it is vital you ensure you are compliant and the best way to do that is to get in touch for friendly advice now. If you are a landlord in our area covering Stratford, Newham, Redbridge, or Dagenham do get in touch and we will be happy to help. 

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