The Renters’ Rights Bill: Q&A

This Q&A on the Renters’ Rights Bill (Bill) provides an overview of the draft legislation as it stands at the time of publication.

The Bill is currently being discussed at committee stage in the House of Lords with many amendments tabled to date so will likely undergo further changes before becoming law.

The general rules

1. What is meant by a monthly periodic tenancy?

A periodic tenancy is a rolling tenancy that will automatically renew each month until either the landlord or tenant terminates it.

2. What is an assured shorthold tenancy (or AST)?

An AST is currently the most common form of tenancy. Most private tenants hold an AST. Any tenancy which started on or after 28 February 1997 and is granted to an individual who occupies the property as their principal or only home and meets the rent criteria will be an AST (unless the landlord serves notice ahead of commencement to provide that it will be an assured tenancy rather than an AST). In terms of rent, the criteria are that the rent must be more than £250 a year (or more than £1,000 a year in London and Greater London) and less than or equal to £100,000. (Some tenancies created on or after 15 January 1989 will also be ASTs).

3. Does the Bill mean the end of ASTs?

Yes. The concept of an AST will no longer exist.

Once the Bill becomes law, any new tenancy which would previously have been classified as an AST will take effect as a monthly periodic tenancy. It will no longer be possible to restrict the length of such a tenancy.

4. Are there any tenancies to which the law will not apply?

Yes. Tenancies which are not assured tenancies will not be affected.

So, where a property is let to a company, it will not be an assured tenancy and the new law will not apply.

Where the rent is less than £250 per year (or less than £1,000 per year in London or Greater London) and no more than £100,000, it will be a common law tenancy rather than an assured tenancy and the new law will not apply.

The law will also not apply to tenancies of farmhouses let as part of a farm, on an agricultural tenancy agreement (either under the Agricultural Holdings Act, or on a Farm Business Tenancy Agreement) or to tenancies of houses let with more than two acres of agricultural land. 

5. What happens to existing ASTs?

Except as set out in the answer to question 6 below, any ASTs in existence at the date the new legislation comes into force will automatically convert into monthly periodic tenancies, unless a valid section 21 notice to terminate the tenancy was served before this date.

The conversion will happen at the end of the rental period which applies at the date the Bill becomes law. For example, where rent is paid monthly in advance on the first day of the month, the rental period starts on the first day of the month and ends on the last day of the month. If the Bill becomes law in the middle of the month, the AST will convert to a monthly periodic tenancy on the first day of the next month.

6. Are there any existing ASTs which will not be affected?

Yes. The new regime will not apply to any assured tenancies which were in existence before the law comes into force and which were originally granted for a term of more than seven and less than 21 years. 

There are also transitional provisions for leases of more than seven and less than 21 years which are entered into in the two months after the Bill becomes law (or where the parties contract to enter into the lease before that date).

7. Are landlords now too late to serve a section 21 notice in relation to an existing AST?

Not yet. 

A section 21 notice can be served at any point up to the date on which the Bill comes into force (assuming the terms of the tenancy permit them to do so).

So long as a section 21 notice is validly served before the new legislation comes into force, the AST should terminate in accordance with the notice and will not convert into a monthly periodic tenancy.

However, landlords will need to be aware of the risks if a tenant does not vacate upon expiry of the section 21 notice. If landlords do not commence possession proceedings promptly (within three months of the Bill becoming law in most cases but within shorter time periods in some cases), the AST may convert into a monthly periodic tenancy and be governed by the provisions of the new legislation.

Rent

8. Will a landlord be able to let out their property to the highest bidder?

No. The Bill aims to prevent bidding wars. Landlords and agents will be required to publish an asking rent for the property, and it will be illegal to accept (or even encourage) offers above this rate.

9. And what about payment of rent in advance?

A landlord will be able to request payment of up to one month’s rent in advance once a tenancy agreement has been signed. 

Payment of more than one month’s rent in advance will be prohibited, although a landlord can still require a security deposit of five or six weeks’ rent.

10. How will rent reviews operate?

No rent review is possible during the first 12 months of a tenancy to which the new legislation applies.

After the first 12 months, a landlord will be able to propose a rent increase no more than once a year on two months’ notice. The rent proposed by the landlord must be a fair and market rent.

There is a statutory process which the landlord must follow to request a rent increase and it will not be possible to agree a rent increase outside this statutory process.

Challenging rent

11. When can a tenant challenge their rent?

After the first six months of the tenancy, a tenant can apply to the First Tier Tribunal (Tribunal) to challenge their existing rent. A tenant can also challenge any future rent increase proposed by their landlord. 

There is no time limit to this right so a tenant can challenge their current rent (once outside the initial six months of the tenancy) or a proposed increase at any time.  A tenant is only prevented from bringing a challenge if the Tribunal has already approved the rent.

12. What if a tenant challenges their rent?

The Tribunal will determine the fair market rent.

If the Tribunal determines that a fair market rent is lower than the existing rent (or lower than the new rent proposed by the landlord where the tenant challenges a rent review), the rent will be set at this lower figure.

However, if the Tribunal determines that a fair market rent is higher than the existing rent (or higher than the new rent proposed by the landlord where the tenant challenges a rent review), the rent will not be increased. Either the existing rent or the new rent proposed by the landlord will apply even though these are lower than the fair market rent (as determined by the Tribunal).

This section of the Bill is currently under review as there are concerns that the provisions, as currently drafted, are open to abuse.

Ending a tenancy

13. When and how will a tenant be able to end their tenancy?

A tenant will no longer be bound to a tenancy for a minimum fixed term and will be able to serve two months’ notice to end their tenancy at any time.

14. How will a landlord be able to end a tenancy?

A landlord will only be able to end a tenancy if it qualifies under one of a limited set of permitted grounds. 

For example, terminating a tenancy will be possible if the landlord or a family member wants to move into the property, the landlord wants to redevelop the property or the landlord wants to sell the property.

Similarly, terminating a tenancy will be possible if the tenant fails to pay rent, is in breach of the tenancy agreement, engages in anti-social behaviour or commits a crime or causes a deterioration of the property or its furniture.

15. Will it be possible to secure possession without a court order?

The landlord can serve notice to terminate a tenancy on one of the prescribed grounds under section 8 of the Housing Act 1988 (as amended by the Bill).  If the tenant vacates the property in accordance with this notice no court order will be required. As is currently the case, a possession order will always be needed if the tenant refuses to vacate when the tenancy comes to an end. A residential occupant can only ever be forcibly removed by court-appointed bailiffs or High Court Enforcement Officers.

16. What if the landlord or a family member would like to move into the rented property?

Provided at least 12 months has passed since the start of the current tenancy, a landlord will be able to regain possession on four months’ notice if the landlord or a close family member is seeking to move into the property.

In the case of joint landlords, only one of the landlords would need to satisfy this ground. 

17. What if the landlord would like to sell the property?

Provided at least a year has passed since the start of the current tenancy, a landlord will be able to regain possession on four months’ notice if they want to sell the property.  If possession is secured on this basis, it will not be possible to relet the property for another 12 months.

18. What if the landlord would like to carry out works to the property?

Provided at least six months has passed since the start of the current tenancy, a landlord will be able to regain possession on four months’ notice if they wish to demolish or reconstruct a substantial part of the property or carry out substantial works on the property or any part of it.

This is on the proviso that the landlord cannot reasonably carry out those works with the tenant in occupation or the tenant is not willing to agree to a variation of the tenancy (to facilitate access or occupy only part of the property during the works) which would allow the tenant to remain in occupation while the works are ongoing. The landlord seeking possession must also be the same landlord who was in place before the tenancy in question was granted and must not have acquired their interest in the property for money after the commencement date of the tenancy.

19. Will a mortgage lender be able to exercise a power of sale?

Yes. A property can be sold by a lender on four months’ notice. This is the case even if the tenant has not been given notice of the mortgage and even if the identity of the lender has changed during the tenancy.

20. What is the time frame within which a landlord will be able to regain possession where a tenant fails to pay rent when due?

Evicting a tenant for non-payment of rent will take longer than is the case under the existing law. A tenant will need to be in arrears for three months (rather than two months) both at the time notice is served and at the time of the possession hearing. A landlord will then need to give the tenant at least four weeks’ notice (rather than two weeks’ notice).

This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances.

© Farrer & Co LLP, March 2025