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England's 11 million private renters have received the greatest increase to their rights in a generation. The Renters Rights' Bill has officially become law after receiving Royal Assent. The sweeping set of reforms mean landlords will no longer be able to carry out so-called 'no-fault' evictions and so cannot get rid of tenants without good reason. But the law gives renters the right to end tenancies with two months' notice and enables them to better challenge poor conditions and unreasonable rent increases without fear of retaliatory eviction. A major shake-up means fixed-term assured tenancies and assured shorthold tenancies will be abolished and replaced with rolling periodic tenancies, meaning renters will no longer be tied into long contracts. But while the law has been passed, both tenants and landlords are still waiting for confirmation on how and when the reforms will be put in place. We explain what you need to know. What is in the Renters' Rights Act? The Renters' Rights Act is a dramatic shake-up that brings in new rules on evicting tenants and how tenancies are structured. It will end long fixed-term tenancies, allow renters to leave with two months' notice, stop landlords getting rid of tenants without good reason, and bring the ability to challenge rent rises. There are other elements too. Bidding wars will we be ended and landlords will be stopped from demanding more than one month's rent upfront. The Act will ban landlords and agents from refusing renters because they have children or receive benefits. Renters will also be able to ask to keep a pet - something landlords can't say no to without a good reason. It will strengthen local authority enforcement designed to protect tenants and force landlords to urgently fix dangerous homes. A new Private Rented Sector Ombudsman will also offer swift, binding resolutions to tenants' complaints. 'Our historic Act marks the biggest leap forward in renters' rights in a generation,' said Steve Reed, secretary of state for housing, communities and local government. 'We are finally ending the injustice overseen by previous governments that has left millions living in fear of losing their homes. 'For decades, the scales have been tipped against tenants. Now, we're levelling the playing field between renters and landlords. 'We are tearing down the walls of injustice in the private rented sector and building a future where tenants are protected, respected and empowered. 'This is an historic moment for renters across the country and we're proud to deliver it.' When will the Renters' Rights Act take effect? Whil the law is bold and has been passed, tenants and landlords are still waiting for clarity on the implementation of the new rights. However, it is expected to take effect within the next six months. Government guidance says that in the coming weeks, ministers will outline how the reforms will be rolled out. Until there is clarity on this point, 'the job isn't finished', according to Tom Darling, director at the The Renters' Reform Coalition. 'We need to know when the bill will actually come into force, and that date must be as soon as possible,' says Darling. 'Renters have been waiting years for these changes and the stability and security they will bring, while rents, evictions and homelessness have soared. We can't afford to wait much longer.' However, the National Residential Landlords Association (NRLA) is claiming the sector needs six months as a minimum to ready itself for the changes. How tenancies will change The Renters' Rights Bill will put an end to fixed-term tenancies with all rental agreements converting into rolling periodic ones. This means a landlord can't tie a tenant into a 12-month or longer contract, where they will have to pay rent even if they leave the property. Instead, all tenancies will be rolling, meaning a tenant can leave at any time provided they give the required notice of two months. It will apply retrospectively, so that even if someone is in the middle of a two or three-year rental agreement without a break clause, they should soon be able to serve two months' notice. The Government guidance states: 'the new tenancy system will apply to all private tenancies - existing tenancies will convert to the new system. 'A one-stage implementation will prevent a confusing two-tier system, and give all tenants security immediately.' Patrick Ansell, property litigation expert at Taylor Rose Law Firm says: 'Instead of running for a set period – for example, 12 months - all new tenancies will be 'periodic' from the outset but with a protected period for the first 12 months. 'This means that the tenancy is, in effect, open-ended, and whilst tenants will be able to end their tenancy with two months' notice at any time, there will only be limited circumstances - such as rent arrears - that a landlord will be able to end it inside the first 12 months.' How can landlords evict renters While no fault evictions are now abolished, landlords should still be able to recover their property in some circumstances. They will still be able to evict a tenant in order to sell the property or if they or family members are moving into it. But they will not be allowed to evict under these grounds within the first year of a tenancy and after that will need to give tenants four months' notice. The law includes safeguards to try to prevent landlords from abusing these eviction grounds. It's worth pointing out that there will be a 12-month restriction on re-letting where a landlord has given notice to sell. 'The Renter's Rights Bill will end Section 21 evictions for both new and existing tenancies, meaning landlords will no longer be able to evict a tenant without reason,' said Ansell. 'Landlords will still be able to evict tenants if they have a statutory ground for doing so, such as if the landlord intends to sell the property, the tenant is in rent arrears or commits anti-social behaviour, but they will only be able to do so using the amended Section 8 process.' Will landlords be able to increase the rent? Landlords will be able to increase rents, but they will be limited to doing so only once a year and at a level that matches the going market rate. Tenants will be able to appeal excessive above-market rents, which are purely designed to force them out. Under the new law, they will also be able to challenge their rent at a tribunal within six months of moving in to a property. Ansell adds: 'The bill will also seek to end bidding wars by preventing landlords from accepting rents higher than those originally advertised when a property is marketed, whilst it will no longer be possible for rent increases to be written into contracts to prevent mid-tenancy hikes, leaving landlords only able to raise rent once a year at the market rate via a statutory process. 'The Government believe this will help prevent spiralling rents and tenants from being pitted against one , which has become increasingly common.' A landlord database There will also soon be a national private rented sector database that will require every landlord in England to register and list details of every property they let. The aim is to give local authorities and tenants a single source of information about who owns and manages each rental property. Landlords who fail to register will be unable to legally let their properties and face fines for not doing so. And they could even be subject to a landlord ombudsman, which will handle complaints from tenants and could force them to pay compensation. The government says the database is designed to help landlords understand their legal obligations and demonstrate compliance, alongside providing better information to tenants to make informed decisions when entering into a tenancy agreement. What other things are changing? The act will make it illegal for landlords and agents to discriminate against prospective tenants in receipt of benefits or with children. Other important changes include tenants having strengthened rights to request a pet in the property, which the landlord must consider and cannot unreasonably refuse. To support this, landlords will be able to require pet insurance to cover any damage to their property. Landlords will also be held to higher standards over the homes they let out. The Decent Homes Standard will be applied to the private rented sector. This sets minimum standards that homes must meet and applies Awaab's Law - which sets strict timeframes for repairing dangerous hazards like damp and mould - to privately rented homes. These standards are already enforceable in social housing. Local authority enforcement will include civil penalties and introduce investigatory powers, bringing in a new requirement for local authorities to report on enforcement activity. It will also strengthen rent repayment orders on landlords, doubling the maximum penalty and ensuring repeat offenders have to repay the maximum amount. 'Whilst some of the new requirements for landlords could theoretically result in criminal prosecution for breaches of them, local authorities are to be granted wide powers to impose significant fines for non-compliance,' says Patrick Ansell. 'Landlords will also be at risk of Rent Repayment Orders (RROs) being applied for by tenants or local authorities in many circumstances also.' What should landlords do now? The balance of power between landlords and renters has undergone a seismic shift thanks to the new Act. Some landlords may consider selling up, but most will need to adapt. There are concerns of a wave of section 21 evictions before rules kick in, however. Patrick Ansell of Taylor Rose Law Firm says landlords need to first and foremost review their property portfolio. 'Firstly, if you are a landlord with multiple properties, now is the time to conduct a prompt review of your property portfolio,' he says. 'This is imperative so that you understand and can prepare for the implications of the new regime and ensure you are compliant from day one. 'Taking the time now to review the tenancy documents to establish any current or anticipated future non-compliance so that you can remedy the same and evidence your compliance is vital. 'Also if you have long-term plans for your properties—such as selling, refurbishing, or moving in—keeping clear records of these intentions could be crucial in supporting any future possession claims in the next few years.' Ansell also suggests identifying any tenants close to the end of a fixed term contract. He says: 'If you have tenants whose fixed term has already expired or is going to expire before the abolition of Section 21 notices, decide whether you want to serve a Section 21 notice upon them whilst you are still able. 'If you are happy for your tenant to remain in the property remember that any renewal is likely to be retrospectively impacted when the changes are implemented. For example, a contractual fixed term won't be of any effect. 'Also consider trying to agree a new rent with any existing tenants who are outside of the fixed term that you wish to keep before the new rules about rent increases become law.' The new national database will require all private landlords to register their properties. 'This will require further administration,' adds Ansell, 'so having your information in order now will save you the hassle later. 'Start by gathering all essential documentation well in advance, including Gas Safety Certificates, Energy Performance Certificates (EPCs), and electrical compliance reports (EICRs). 'These records will not only be necessary for registration but will also streamline your ability to make possession claims when needed.' Finally, it would be worth registering with the Ombudsman Scheme as soon as it becomes available, as participation will be mandatory. It will also be important to keep detailed records of all interactions with tenants, including maintenance requests and any agreements made. 'A well-documented history can be invaluable in preventing disputes and ensuring smooth resolutions should any issues arise,' says Ansell.
