Landlord and tenant law in England is undergoing significant changes to address contemporary challenges and issues within the rental market. Here are some key developments and anticipated changes that are shaping the landscape:
1. Renters’ Rights Bill
The Renters’ Rights Bill which was proposed by the government is the last King’s speech is a highly anticipated piece of legislation that aims to transform the rental sector. It flowed the failure of the Renters’ Reform Bill proposed by the last administration. Some of the key proposals include:
Abolishing Section 21 ‘no fault evictions’, removing the threat of arbitrary evictions and increasing tenant security and stability. New clear and expanded possession grounds will be introduced so landlords can reclaim their properties when they need to.
Strengthening tenants’ rights and protections, for example the government is proposing that it will empower tenants to challenge rent increases designed to force them out by the backdoor and introduce new laws to end the practice of rental bidding wars by landlords and letting agents.
Giving tenants the right to request a pet, which landlords must consider and cannot unreasonably refuse. Landlords will be able to request insurance to cover potential damage from pets if needed.
Applying a Decent Homes Standard to the private rented sector to ensure homes are safe, secure and hazard free – tackling what the government refers to as the blight of poor-quality homes.
Applying “Awaab’s Law” to the sector, setting clear legal expectations about the timeframes within which landlords in the private rented sector must make homes safe where they contain serious hazards.
Creating a digital private rented sector database to bring together key information for landlords, tenants and councils. It is proposed that Tenants will be able to access information to make informed choices when entering new tenancies. Landlords will be able to quickly understand their obligations and demonstrate compliance, providing certainty for tenants and landlords alike. Councils will be able to use the database to target enforcement where it is needed most.
Supporting quicker, cheaper resolution when there are disputes – preventing them escalating to costly court proceedings – with a new ombudsman service for the private rented sector that will provide fair, impartial and binding resolution, to both landlords and tenants and reducing the need to go to court.
Making it illegal for landlords to discriminate against tenants in receipt of benefits or with children when choosing to let their property
Strengthening local councils’ enforcement powers. It is proposed that new investigatory powers will make it easier for councils to identify and fine unscrupulous landlords and drive bad actors out of the sector.
- Updated Building Safety Regulations
Following the tragic Grenfell Tower fire, there has been a strong focus on improving safety standards in rental properties, especially high-rise buildings. Landlords are now subject to more stringent fire safety and building regulation compliance, with ongoing government reviews expected to impose further responsibilities.
- Energy Efficiency Standards
There is increasing pressure on landlords to improve the energy efficiency of rental properties. The Minimum Energy Efficiency Standards (MEES) require rental properties to have at least an Energy Performance Certificate (EPC) rating of E or above. Future legislation is, in our view, likely to push for even higher standards, aiming for all rental properties to achieve a minimum EPC rating of C by 2030.
4. Ban on Letting Agent Fees
The Tenant Fees Act 2019 banned most letting agent fees and capped tenancy deposits at five weeks’ rent. Despite initial resistance from some landlords and agents, tenants have generally welcomed these changes as they reduce the upfront costs of renting.
5. Expansion of Licensing Schemes
There has been a notable increase in selective, additional, and mandatory licensing schemes for Houses in Multiple Occupation (HMOs). These schemes are intended to ensure that rental properties meet specific standards and that landlords are ‘fit and proper persons’ to let their properties. Furthermore many local authorities are now requiring all private landlords to register with them before they are able to rent out their property.
6. Greater Regulation and Professionalism
The government is pushing for higher standards in the rental market by proposing the regulation of landlords and property agents. This might include mandatory qualifications and ongoing professional development, ensuring that those managing rental properties are well-informed and competent.
7. Digitalisation and Data Transparency
Digital platforms are increasingly being used for rent collection, property management, and communication between landlords and tenants. There’s a move towards greater transparency in this digital age, with proposals for an online ‘Property Portal’ where landlords must register their properties, ensuring transparency and accountability.
8. Addressing the Housing Crisis
With a significant shortage of affordable housing, the government is focusing on increasing the supply of rental properties. This includes encouraging Build-to-Rent developments, where developers build properties specifically for long-term rental.
9. Court Reform
We away further details if the Renter’s Rights Bill on this subject but it appears that steps are being made to streamline the court process for dealing with rental disputes, including the introduction of a specialist ombudsman to handle cases more efficiently. This will aim to speed up the resolution of disputes, benefiting both landlords and tenants.
The landscape of landlord and tenant law in England is set for considerable transformation, focusing on tenant security, property standards and regulatory compliance. Both landlords and tenants should stay informed about these ongoing changes to navigate the evolving rental market effectively. Whether through new legislation or heightened enforcement of existing laws, these developments aim to create a fairer, more transparent, and safer rental market for all involved. Whether it will lead to a surge in Landlords seeking to sell their buy to let investments before the legislation is implemented, only time will tell but if it does it could, ironically, in the short term lead to greater difficulties for tenants to source a suitable property in an already stretched market.
This blog was prepared by Alexander JLO’s senior partner Peter Johnson on the 27th January 2025 and is correct at the time of going to press. Peter Johnson is the Senior Partner of Alexander JLO. He has over 40 years’ experience in the areas of Family Law, Company & Commercial, IT & Intellectual Property, Landlord and Tenant Law, Employment Law and Litigation working as a Senior Solicitor.
Peter’s profile on the independent Review Solicitor website can be viewed here.