How will the PRS be impacted by the Renters’ Rights Bill?

The new Labour government is working on the details of its Renters’ Rights Bill, which was revealed in the King’s Speech and key elements of which were also part of its manifesto.

The bill proposes several changes to the sector, many of which are a reflection of the proposals within the Conservatives’ Renters’ (Reform) Bill that was working its way through approval before being scrapped when the general election was called. The new bill will have to pass through the same process that the Renters’ Reform Bill went through, with Autumn the likely earliest it can be introduced. The government has promised more details in October with it likely becoming law sometime between October 2025 and October 2026.

So how will the policies that make up the bill impact the private rented sector?

More security for tenants

The main benefactors of the Renters Rights Bill are evident in the very title of the bill. It’s focused on improving the rights of tenants. The government aims to achieve this in a number of ways, including improving a tenant’s right to stay in a property, fairer rental prices and the ability to have requests for pets fairly considered.

A tenant’s right to stay within a rental property will also be improved with the end of no-fault Section 21 notices. Currently a feature of the Housing Act 1988, their abolishment will lead to greater security of tenure for tenants.

Revised powers of possession for landlords

The consequence is that landlords assume a less powerful position in the hierarchy of renting. However, Labour has counterbalanced its plans to abolish Section 21 by confirming that it will strengthen and redefine grounds for possession when a landlord wants to reclaim their property for a valid reason. It’s hoped this will provide clearer boundaries for landlords and tenants.

Improved standards of housing

The Renters Rights Bill should also lead to improved housing standards in the private rented sector. Its plans to implement ‘Awaabs Law’, for example, aims to set strict timeframes for rectifying damp and mould issues within a rental property to eliminate the risk to health that such hazards can cause.

A fairer rent system

Labour’s focus on unfair rent increases should also help to bring change to the sector. It aims to stamp out unfair rent increases, as well as stopping landlords and letting agents from encouraging bidding wars between renters to inflate rents.

Greater rights for children, pets and those on benefits

It is hoped that discrimination by landlords against tenants who have children or receive benefits will also end with the government’s plans to make such practices illegal. Tenants wanting to keep a pet will also have greater support. New rules will allow them to have a request for a pet considered and not unreasonably refused. To counterbalance this, landlords can insist on the tenant having relevant insurance in place to cover potential damage from that pet if appropriate.

At PH Estate Agents, we understand the importance of staying informed about changes that could impact the private rented sector (PRS). With a deep-rooted commitment to traditional values of trust and exceptional customer service, our dedicated team specialises in both residential and commercial properties across Cleveland and North Yorkshire. Whether you’re considering selling, letting, or need expert advice on navigating new regulations, we offer comprehensive services tailored to your needs. From detailed market valuations to full-service lettings management, we’re here to guide you through every change with confidence.

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