The Renter's Rights Act will come into force in 2026. The private rental sector has never seen this scale of changes before.
What is the Renter's Rights Act?
The Renters’ Rights Bill was published on 11 September 2024 to change the law about rented homes in
England. The legislation will abolish fixed term assured tenancies and assured short hold tenancies and
deliver on the Labour Party’s manifesto commitment to transform the experience of private renting,
including by ending Section 21 ‘no-fault’ evictions.
We've broken down the changes into the key areas and answered your questions below...
Tenancy Reform
The legislation amends sections of the Housing Act 1988, meaning that all assured tenancies will be periodic and can no longer have fixed terms.
The length of the rent period of an assured tenancy will be limited so that rent periods must be either monthly or no more than 28 days long.
If the rent is paid per calendar month, it will be a monthly periodic tenancy. For the few tenancies where the tenant pays weekly, it will be a rolling weekly tenancy.
A tenant will be able to end a tenancy by giving two months’ notice in writing. The end date of the tenancy will need to align with the end of a rent period.
There is no mention of these alternate types of tenancy in the legislation. We will seek to gain clarity from the UK Government/Our Governing Bodies on these points.
When ending a tenancy, a tenant must give at least two months’ notice.
They will not be able to end a tenancy partway through a rental period, meaning that the notice must end on the last day of the rental period, two months in advance. The tenant will be liable for rent until the end of the notice period.
If one tenant brings a tenancy to an end, it will end for all tenants.
To reduce the length of the notice period from 2 months, the landlord and all tenants will have to agree to a shorter notice period.
Where a tenant wants to withdraw from a served notice to quit, this can only be done in agreement with all joint tenants.
No.
From the date of the legislation commencing, all new assured tenancies must be periodic from the start of the tenancy, and all existing assured tenancies will also become periodic.
When the legislation comes into force, existing tenants will have to be given a UK Government-provided note of what is changing within one month, but will not need their tenancy agreements replaced.
They tenant could serve notice from the moment their tenancy begins. There is no minimum tenancy period (their notice period aside) for a tenant to be in occupation.
No.
A tenant could give notice via any communication method so audit trails and detailed notes from phone calls are very important.
Rent Increases
The Bill amends the Housing Act 1988 so that issuing a section 13 notice and giving at least two months’ notice will be the only valid way that a private landlord can increase the rent.
Landlords will only be able to able to increase the rent once a year, and the notice period for a rent increase will increase from one month to two months. The new rent must reflect market rates.
If the tenant accepts the proposed rent increase, they simply need to pay the new amount on the next rent day.
NB: The new rent amount will take effect two months after a Section 13 notice is issued, if it is not challenged by the tenant in the Tribunal or if the landlord and the tenant agree on a different variation of rent. This variation must be lower than the rent proposed in the notice, or the landlord and tenant can agree that the rent should not be varied.
No, these are no longer valid.
The guidance suggests that market rent or market prices will be calculated based on the rent that could be achieved if the property were brought back to the market. Tenants will be able to challenge rent increases at the First-tier Tribunal, which will have the power to set the market rate for the property.
A landlord should be able to create and retain data to prove market rate in a tribunal setting.
Yes.
Tenants must do this before the starting date of the proposed new rent, and tenants should notify their landlord that they are doing so.
In cases of undue hardship, the FTT will have the power to defer rent increases by up to a further two months.
NB: The new rent determined by the tribunal must be the lower of the market rent or the landlord’s proposed rent. Unlike currently, the tribunal could not determine a new rent that is higher than the landlord’s proposed rent.
Tenants can also challenge the validity of a Section 13 notice in the FTT (for example, if a landlord gave insufficient notice of the rent increase, rather than because the tenant considered the rent to be excessive), instead of in the county court.
If a tenant challenges a rent increase, they are legally required to pay the rent they would have been paying before the rent increase came into effect.
Yes, if the First-tier Tribunal (FTT) decides that the rent increase reflected market rent, tenants could be required to pay any rent missed between the date when the rent increase was set to start and the date the FTT reached a decision.
Tenants will also have the ability to challenge the amount of rent as being above market rent within the first six months of signing the new tenancy agreement.
We are awaiting further clarification on the details on this part of the legislation as to how it will work in practice.
Rent in Advance
The legislation amends the Tenant Fees Act 2019 to prevent landlords or letting agents from requiring or
accepting any payment of rent in advance of the tenancy being entered into.
Any terms used in a signed tenancy agreement referring to rent that is due in advance would have no effect.
A landlord will only be able to require up to one month’s rent (or 28 days’ rent for tenancies with rental
periods of less than one month) once a tenancy agreement has been signed and before commencement.
No, the Act bans any rent in advance that is higher than one month’s rent.
Rent cannot be taken in advance of the tenancy agreement being signed, but the deposit can be.
No, any terms in a signed tenancy agreement that would require the tenant to pay rent in advance, or that accept any payments made in advance, will have no effect.
The ban on rent payments in advance only applies to tenancies signed after the Act commences.
A tenant cannot do this prior to a tenancy starting, however Tenants will remain free to pay before the rent due date should they wish to do so. This maintains flexibility for tenants to manage their tenancies in the way that best suits them. A landlord will not be able to require a tenant to pay their rent before it is due.
Local councils will have the power to require landlords to repay a prohibited payment of rent in advance to the tenant and to impose a civil penalty on landlords, and anyone acting directly or indirectly on their behalf, of up to £5,000 for breaches.
Rent Bidding
The legislation prevents landlords and letting agents from asking or encouraging a prospective tenant to offer an amount of rent above that which is stated in the written advertisement or written offer for the proposed letting.
This means that landlords and letting agents cannot accept an offer of rent above that which the landlord or letting agent has stated in a written advertisement or written offer. This includes if the offer is freely made by a prospective tenant.
If a local authority finds on a balance of probabilities that a landlord or a letting agent has breached these obligations, they may be fined up to £7,000.
Landlords and letting agents can receive multiple civil penalties for continued and repeated breaches.
Tenants will be able to pursue a breach through their local council and seek redress through the new Private Rented Sector Ombudsman and letting agent redress schemes.
The legislation will enable tenants to reach out to their local council to record breaches in the new laws. It is possible, but not confirmed, that tenants could report that properties they expressed an interest in were taken off the market, only to be reintroduced at a higher rent.
Lets with Pets
It will be an implied term of every assured tenancy that a tenant may keep a pet with the landlord’s consent unless the landlord reasonably refuses, including where accepting a pet would breach an agreement with a superior landlord.
The tenant’s request must be made in writing and include a description of the pet sought.
Pet means an animal kept by a person mainly for personal interest, companionship or ornamental purposes.
There are no details on what a reasonable reason would be to refuse a pet, other than one: if a superior landlord refuses permission for a pet at the property or if it would breach the agreement with the superior landlord.
Other reasons might include the size of the property, the size of the pet, the number of pets, and the type of pet. We would expect to see more detail on these in future regulations. More detail will be provided in future UK Government Guidance.
The landlord will be able to request more information about the pet and will have a set number of days to give or refuse consent in writing.
Landlords will be required to fully consider all requests on a case-by-case basis. A landlord must respond (give or refuse consent) to a written request from the tenant within 28 days.
Where the landlord requests further information from the tenant about the pet on or before the twenty-eighth day after the date of the tenant’s request and the tenant provides that information, the landlord may delay giving or refusing consent until the seventh day after the date on which the tenant provides any further information that the landlord requests. If the tenant does not provide that information, the landlord is not required to give or refuse consent.
If the contract has a clause that prevents the tenant from owning a pet if the landlord’s refusal has been found to be reasonable, either by the courts or through the new Private Rented Sector Ombudsman, then this would be grounds for eviction.
However, since breaking the terms of the tenancy agreement is still a discretionary clause, the landlord will still have to go through the legal process of evicting the tenant.
The tenant could challenge this in court or through the landlord ombudsman, and it may be ordered that the pet is allowed, if reasonable to do so.
No, the landlord will not be allowed to request an additional deposit for a pet.
The legislation had originally planned to amend the Tenant Fees Act 2019 so that landlords can require pet insurance to cover any damage to their property. HOWEVER, to avoid a situation where landlords could veto a tenant’s reasonable request to keep a pet, the UK Government withdrew the pet insurance provisions from the Bill, and the matter will be kept under review.
No, the Act prevents landlords from allowing tenants to keep a pet on the condition that they take out insurance to cover the costs of pet damage.
Anti-Discrimination Rules
The Bill prohibits discriminatory bans and restrictions on the letting of private rented sector properties on
the basis that a child would live with or visit a person at the property.
Landlords must also not discriminate against prospective tenants on the basis that they might or are in receipt of benefits.
The Bill prohibits discriminatory bans and restrictions on the letting of private rented sector properties on the basis that a child would live with or visit a person at the property.
This includes:
• Enquiring whether the property is available for let.
• Accessing information about the property.
• Viewing the property to consider whether to seek to rent it or enter into a tenancy or apply any measures to make people who would have a child live with or visit them at the property, if it were their home, less likely to enter into a tenancy of the property than people who would not.
The ban applies to all assured tenancies other than when in connection with social housing or supported accommodation, and in relation to all relevant discrimination, including that which targets a specific subset of ‘child’, such as those in fostering arrangements.
NB: Child means a person under the age of 18.
Under the legislation, it is for landlords and letting agents to consider whether excluding prospective tenants with children represents a proportionate means of achieving a legitimate aim, and landlords would need to be able to evidence their decision on a case-by-case basis.
For example, a one-bedroom flat might be suitable for a mother with a baby but not for a parent with two teenage children, where this level of occupancy would mean that rules on overcrowding were breached.
Letting agents and landlords must not discriminate against anyone who is or may be a benefits claimant.
This includes:
• Enquiring whether the property is available for let.
• Accessing information about the property.
• Viewing the property to consider whether to seek to rent it, or entering into a tenancy of the property, or applying any criteria or practice to make benefits claimants less likely to enter into a tenancy of the property than people who are not benefits claimants.
A benefits claimant means a person who is:
• Entitled to payments (including payments made directly to a landlord) under or by virtue of the Social Security Contributions and Benefits Act 1992 or the Welfare Reform Act 2012.
• Entitled to payments (including payments made directly to a landlord) under or by virtue of the Jobseekers Act 1995, the State Pension Credit Act 2002, the Tax Credits Act 2002, the Welfare Reform Act 2007 or the Pensions Act 2014.
• In receipt of a reduction in the amount of council tax payable in respect of the person’s current home under a scheme made by a billing authority relating to the Local Government Finance Act 1992.
• Entitled to a reduction in the amount of council tax payable in respect of the property in question under a scheme made by the billing authority in whose area the property is location in relation to the Local Government Finance Act 1992, if the person were to rent the property on a relevant tenancy, and if an application is a preco
No, the legislation only prevents blanket discrimination based on whether the prospective tenant has children or is in receipt of benefits. For example, no DSS adverts will be banned, but agents and landlords will still have the final say on which tenant their property will be let to.
The UK Government is emphasising that agents and landlords consider individual circumstances when letting out to tenants with children or who are benefit recipients. When explaining why applications to rent are denied, agents and landlords can point to inappropriate properties, such as those with few bedrooms or which are considerably more expensive than what a tenant could receive with benefits. This could be clearly stated in writing to avoid potential legal challenges.
When the legislation comes into effect, any terms in mortgages or lease agreements with superior landlords that place restrictions on those in receipt of benefits or who have children will have no effect.
This will mean that a landlord cannot be considered in breach of their contract or superior landlord agreement.
Existing insurance contracts will be exempt from the measures outlined in the legislation until they come to an end or are renewed. The legislation will make any restrictive terms for new insurance contracts have no effect.
Local councils can impose civil penalties on landlords and anyone acting directly or indirectly on their behalf, up to £7,000 for breaches. Those issued with a financial penalty will be able to appeal the penalty at the First-tier Tribunal.
NB: Landlords and letting agents can receive multiple penalties for continued and repeated breaches.
Prospective tenants will be able to pursue a breach through their local council or through the courts and seek redress through the new Private Rented Sector Ombudsman and letting agent redress schemes.
Changes to grounds for possession
Section 21 evictions are abolished. A landlord can only end a tenancy by serving a Section 8 notice, which specifies one or more appropriate grounds for possession. Different grounds have different notice periods.
The legislation amends the grounds for possession in Schedule 2 of the Housing Act 1988, including in relation to notice periods and the courts making orders for possession.
NB: Each possession ground has a minimum notice period. After this period, a tenant must either vacate the property or the landlord may start court proceedings to regain possession.
The legislation will abolish section 21 evictions, meaning landlords must instead use a Section 8 ground for possession – these are specific circumstances in which a landlord can regain possession.
To regain possession, landlords will serve notice in the prescribed form, giving at least the required notice period to the tenant.
NB: As in the current system, landlords will need to go to court if a tenant does not leave and provide evidence that the ground applies.
The landlord won’t be able to obtain an order for possession unless they have:
• Either paid the deposit into an authorised tenancy deposit scheme or have returned the deposit.
• Registered their property on the Private Rented Sector Database.
If a tenant does not leave when an eviction notice is served, a landlord will need to provide evidence in court to prove the relevant ground applies. For example, a landlord might show they have instructed an estate agent and solicitor if they wished to prove they were selling a property.
The Bill introduces new Grounds for Possession for the private landlord and amends the key rent arrears ground. It also extends the notice period for many key grounds. The grounds are broken down into two categories; mandatory grounds and discretionary grounds.
Mandatory Grounds:
- 1 – Reoccupation by landlord or family
- 1a – Sale of property
- 1b – Sale of property under rent-to-buy scheme
- 2 – Sale by mortgagee
- 2za – Possession when superior lease ends
- 2zb – Possession when superior lease ends
- 2zc – Possession by superior landlord
- 2zd – Possession by superior landlord
- 4 – Student accommodation
- 4a – Properties rented to students for occupation by new students
- 5 – Ministers of religion
- 5a – Occupation by agricultural worker
- 5b – Occupation by person who meets employment requirements
- 5c – End of employment by the landlord
- 5d – End of employment requirements
- 5e – Occupation as supported accommodation
- 5f – Property occupied as supported accommodation
- 5g – Tenancy granted for homelessness duty
- 5h – Occupation as ‘stepping stone accommodation’
- 6 – Redevelopment
- 6a – Compliance with enforcement action
- 6za – Alternative social accommodation available to the tenant
- 7 – Death of tenant
- 7a – Severe anti-social behaviour / criminal damage
- 7b – No right to rent
- 8 – Rent Arrears (3 months arrears)
We have put the grounds that would be available for use by most residential landlords in bold.
Discretionary Grounds:
- 9 – Suitable alternative accommodation
- 10 – Any rent arrears
- 11 – Persistent arrears
- 12 – Breach of tenancy
- 13 – Deterioration of property
- 14 – Anti-social behaviour
- 14a – Domestic abuse
- 14za – Rioting
- 15 – Deterioration of furniture
- 17 – False statement
- 18 – Supported accommodation
We have put the grounds that would be available for use by most residential landlords in bold.
Notice periods vary from ground-to-ground, however the majority now have a 4 month notice period for the landlord to give and are often only available to the landlord after 8 months of the tenancy commencing. We can advise on each notice period for each ground if you need us to.
Ground 8 can be used once a tenant is in 3 months arrears and has a 4 week notice period.
Currently, landlords and agents would be prevented from re-letting their property for 12 months, even if they fully intended to sell their property. Additionally, landlords cannot issue a Ground 1 or 1A notice within the first 12 months of the tenancy.
If it is found that the landlord never intended to sell the property, the landlord will be liable for an offence under the new rules, which could lead to prosecution or a fine of up to £40,000.
No, landlords can serve the required 4 months’ notice on month 8 of the tenancy, allowing for tenants to be evicted from the property when the 12-month protection period is over.
You will no longer be able to use Form 6a to serve a notice to quit. Currently, Form 3 is the correct form to serve notice under one of the Section 8 grounds for eviction.
We expect that the UK Government will look to amend this form to include the new grounds.
No, not necessarily.
As with the current eviction process, if a landlord or agent serves notice on a tenant and the tenant moves out by the end of the notice period, then there is no further action. A landlord only needs to apply to the court for an order for possession if the tenant refuses to leave.
A landlord is more likely to need to apply for an order for possession for grounds relating to rent arrears or anti-social behaviour. Due to the nature of the reason, they may also want to apply to court to claim compensation for rent arrears or other costs.
No, if a valid section 21 notice has been issued before the commencement date of the legislation, it remains valid.
If you have requested the Court to issue a claim form for possession, but possession proceedings have not begun or are in progress, the section 21 notice will remain valid until possession proceedings have concluded.
If possession proceedings have not been requested, the landlord must request the court to issue a claim for possession within six months of the notice given to the tenant or three months following the legislation’s commencement date if that is sooner.
The new Ground 4A will allow landlords to recover possession of a House in Multiple Occupation (HMO) let to full-time students.
Landlords must serve four months’ notice, which can only expire from 1 June to 30 September each year, to re-let the property to full-time students again or to people who the landlord reasonably believes will become full-time students during the tenancy.
If the property is let on a joint tenancy, each tenant must be a full-time student when the tenancy is entered, or the landlord must reasonably believe they will become full-time students during the tenancy at that point, for the ground to be relied upon.
If there are individual tenancies between the landlord and each tenant within an HMO, only tenants who meet the student criteria can be evicted.
NB: Student criteria mean they must be full-time students receiving education from a higher education institution as covered by the Education Reform Act 1988.
Landlords will be required to provide written notice before the tenancy is entered into of their intention to use the ground on the basis that the current tenants are full-time students (or the landlord reasonably believes they will become so during the tenancy), and the landlord intends to relet the property to new full-time students.
NB: Unless a written notice is provided, landlords will not be able to regain possession using the ground.
Private purpose-built student accommodation would be exempt from the assured tenancy system in the same way that university-managed student accommodation is. This only applies to private landlords who are members of a government-approved code of practice.
Landlords can begin court proceedings under anti-social behaviour grounds (7A and 14) immediately, although a court cannot make an order for possession until at least 14 days after the landlord has given notice to the tenant.
If the court has used its power to continue a Section 8 notice, the 14 days will begin either from the date on which any claimed notice was served if the court thinks that is fair in the circumstances, or from the date on which the possession proceedings began.
NB: Under the current requirements of the Housing Act 1988, judges must give specific consideration to the impact anti-social behaviour has had on victims, any continuing effect of the behaviour, and any effect the behaviour would have if it were repeated. In future, judges will also have to consider whether the perpetrator has engaged with steps taken to resolve their behaviour and the particular impact of the behaviour on fellow tenants in HMOs.
Landlord Registration & Redress Requirements
The legislation gives the Secretary of State power to make regulations requiring a residential landlord
(including those who use a letting agent or a managing agent who is a member of a redress scheme) to be
a member of a new Private Rented Sector Landlord Ombudsman Service.
When it is up and running, all landlords must register with the Private Rented Sector Database and
join the new Landlord Ombudsman, who will resolve disputes.
A landlord redress scheme means a scheme which:
Provides for a complaint made by or on behalf of a prospective, current or former residential tenant against a member of the scheme to be independently investigated and determined by an independent individual free of charge and by a scheme approved and designated by the Secretary of State and or administered by or on behalf of the Secretary of State.
Landlords will need to be a member of a landlord redress scheme before, during and after (for a period to be specified in regulations) a property is marketed for the purpose of creating a residential tenancy under which that person will be a residential landlord.
Any prospective residential tenant.
A prospective residential tenant means anyone who offers to become a residential tenant of a property that is marketed for the purpose of creating a residential tenancy, or with a view to deciding whether to become a residential tenant of a property that is marketed as well as requests FOR information about the property from a person marketing it, or visits or requests to visit such a property by arrangement with a person marketing it.
Yes.
Landlords will likely be required to pay a small annual fee per property.
The Private Rented Sector Landlord Ombudsman Service will set this fee based on the costs of operating an effective service.
- Provide information.
- Take remedial action.
- Providing an apology or explanation.
- Paying compensation.
Landlords and agents will remain responsible for their own actions and behaviours, as well as the respective services they have agreed and are legally bound to provide to tenants. Tenants and landlords will still be able to complain about agents and receive redress through the existing agent redress schemes.
MHCLG is aiming to establish the landlords’ ombudsman service shortly after the legislation receives Royal Assent.
Landlords will receive notice to sign up for the service ahead of time.
Yes, the proposals state that it will be compulsory for all landlords to be members of a redress scheme.
Will the landlords’ ombudsman be the same as the agents’ ombudsman? Will the same scheme cover both?
No, the proposals are for a scheme solely for landlords. This is to run alongside existing redress schemes for property management, private rental letting and estate agency work, new homes, and for social housing residents.
It is understood that the scheme will operate in a similar way to agents’ ombudsmen, where tenants will be able to raise complaints against their landlord, which the ombudsman will investigate. Landlords will not be able to raise complaints against their tenants.
A letting agent will not be allowed to market a property where the landlord is not a member of the ombudsman service. However, it is the responsibility of the local housing authority to investigate whether a landlord is a member of a scheme or not.
Local authorities may fine landlords with civil penalties of up to £7,000 for initial breaches and up to £40,000 or criminal prosecution for continuing or repeated breaches. This includes landlords failing to join the Private Rented Sector Landlord Ombudsman Service and letting agents who market a property where the landlord is not registered.
The legislation gives the First-Tier Tribunal the right to award a rent repayment order for “continuing or repeat breaches” of the Private Rented Sector Landlord Ombudsman Service.
Landlords will be legally obliged to comply with the Private Rented Sector Landlord Ombudsman Service’s decisions, and failure to comply is subject to local council enforcement action. Failure to comply may result in a landlord being expelled from the scheme.
Yes, at least some of the information will be publicly available; this will be set out in future regulations, but it is understood that the public information will be related to property standards. The information available will be limited to necessary information and proportionate for the tenant or prospective tenant to make an informed decision about renting. It will be expected that letting agents check that a landlord and the prospective property have public entries in the database.
It is expected that publicly available information will include the landlord’s name, details of others involved in the ownership or management of the property, details of any relevant unspent offences, financial penalties or regulatory notices or decisions held by the landlord, and details relating to the dwelling, including address and information relating to property standards.
According to the legislation, sensitive information related to an offence will be subject to rigorous assessment to determine its compatibility with landlords’ privacy rights under Data Protection laws.
Joint landlords and companies will likely have to register as individuals, and they will be linked to the entries for properties.
Yes, it is proposed that there will be a fee for the creation or renewal of an entry to the database. The details of this will be set out in future regulations. There will also be penalties, such as late fees, if the landlord is not registered on the database within the set deadline or in the future if they do not re-register on time.
Decent Homes Standard
The legislation will amend the Housing Act 2004 to include a new system for assessing housing conditions
and enforcing housing standards.
There will be standards for all homes let under assured tenancies and
privately rented supported housing occupied under tenancies and licenses, but also additional
requirements for some rented properties.
The Secretary of State has the power to specify requirements to be met by rented properties through regulations, including:
• The state of repair of the premises
• Things to be provided for use by, or for the safety, security or comfort of, persons occupying the premises.
• The means of keeping the premises at a suitable temperature.
The local authority will have the power to inspect a property to determine whether any category 1 or category 2 hazard under the Housing Health and Safety Rating System (HHSRS) exists on the premises and whether the property meets the requirements set out in the Decent Homes Standard regulations.
The Decent Homes Standard will initially apply to all homes let under assured tenancies and privately rented supported housing occupied under tenancies and licenses. The UK Government has the power to expand the DHS to additional types of tenancies and licenses if required.
It is likely to. Under the previous UK Government, there was significant consultation on how the DHS could work for the private rented sector. It is likely that the current UK Government will take lessons from the previous consultations and may look to introduce some of its own.
However, it is impossible to say at this stage exactly what the DHS will look like.
Initially, local councils will have the power to issue an improvement notice to the landlord informing them that they need to rectify any breach in the DHS. If the landlord fails to meet the DHS within an allotted time frame, they could be subject to a £7,000 fine or a potential rent repayment order.
Yes, the Secretary of State has the power to assign properties as “qualifying properties” that would meet additional standards beyond what is being introduced through the Decent Homes Standard.
These currently are HMOs, properties that are built or adapted for the use of an HMO, that are only currently being occupied by persons who form a single household and student accommodation that does not qualify as an HMO.
Awaab’s Law currently requires landlords of social housing to investigate issues raised by tenants, such as damp and mould, and begin repairs if required. The legislation will introduce this requirement into the PRS.
A consultation on how to introduce Awaab’s Law to the PRS will be published in 2026.
Currently, the timescales within the social rented sector are two weeks to investigate issues and seven days to begin repairs. However, the specific timescales for the PRS have yet to be included within the legislation, and there may be different timescales depending on the severity of the issue reported by tenants.
The UK Government will consult on any changes to the way Awaab’s law is implemented within the PRS and the social sector.
Landlords would likely face orders from local authorities or courts to take the necessary action, with consequences for failing to act, and or financial compensation for tenants.
Rent Repayment Orders (RROs)
The Housing and Planning Act 2016 provides that the Tribunal has the power to make a rent repayment
order against a landlord for certain offences.
The RRB amends these powers to wider the reach and increase the fines for non-compliance.
Rent repayment orders can consider rent paid on behalf of the tenant as well as rent paid by the tenant. Any rent repayment order cannot be higher than the rent paid by or paid on behalf of the tenant during the specified period. Rent repayment orders can also be awarded to local housing authorities in respect of a relevant award of Universal Credit made by the authority.
The Renters’ Rights legislation amends the Housing and Planning Act 2016 so:
• The value to be repaid can take into account rent paid in respect of the period of the tenancy (so, for example, payments in advance) as well as paid during the tenancy.
• The maximum amount payable is doubled from 12 months to two years’ rent.
• The period in which a tenant or local authority can apply for a rent repayment order after an offence is extended from 12 to 24 months.
• The rent to be repaid does not have to have been paid directly to the landlord against whom the rent repayment order is sought.
• Superior landlords as well as immediate landlords can be liable for a rent repayment order.
• Individual officers of landlord companies may also be subject to rent repayment orders.
• For unlicensed HMOs and houses, the Bill ensures that superior and immediate landlords and licensors, as well as persons having control or managing a property, fall within the scope of the offence.
• Local housing authorities can now serve improvement notices on the person best placed to ensure remedial action is taken in respect of the hazard.
The Bill extends rent repayment orders to the offences of:
• Knowingly or recklessly misusing a possession ground.
• Breach of a restriction on letting or marketing a property.
• Continued tenancy reform breach after imposition of a financial penalty.
• Continued breach of landlord redress scheme regulations after imposition of a financial penalty.
• False information in the PRS Database when purporting to comply with PRS Database regulations
• Continued failure to register with the PRS Database after imposition of a financial penalty.
NB: Where a rent repayment order is made against more than one landlord, those landlords must be held jointly and severally liable for the amount due.
Where a tenant believes their landlord has committed a listed offence, they can apply to the First-tier Tribunal for a rent repayment order. If the Tribunal is satisfied beyond a reasonable doubt that the landlord has committed one of the listed offences, it can order the landlord to repay an amount of rent.
No, rent repayment orders will continue to be pursued by tenants through the First-tier Tribunal. For rent that is paid through Housing Benefit or Universal Credit, local authorities will be required to pursue rent repayment orders through the courts.
A landlord can be expected to pay up to 24 months of rent. Landlords who have been convicted of a licensing offence or have breached any of the legislation’s new requirements will be subject to the maximum rent repayment order.
Tenants and local authorities will have up to 24 months after the offence occurred to apply for a rent repayment order.
Time to become a managed landlord?
If the changes of the Renters’ Rights Bill make self-managing your property seem like something you no longer wish to do then please give our team a call and we can discuss managing your portfolio.
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