What is the Renters’ Rights Bill and how we support London landlords

The Renters’ Rights Bill, (previously known as The Renters Reform Bill) was started by the last Conservative Government and has now been taken on by the Labour Government – it passed its second reading in the UK Houses of Parliament and is likely to become law at some point during 2025.

These significant changes to the private rented sector are incredibly worrying for landlords with properties in London and the UK – these reforms aim to provide better protection and a good standard of accommodation for tenants – Benham and Reeves landlords need not worry as we are here to help clients navigate the new legislation as well as new and old regulations.

We have put together a breakdown of the key Renters’ Rights Bill changes and how Benham and Reeves will help landlords successfully navigate the reforms. We believe the impact on responsible landlords who have quality properties using a professional managing agent will be minimal.

Meeting new housing standards

Landlords will have to ensure their property meets a new Decent Homes Standard. We view this new Standard as good news as tenants are paying rent and therefore are entitled to good quality accommodation and this Standard should raise the quality of rental properties for tenants in the UK.

Q. How will Benham and Reeves help?

A. Benham and Reeves’ experienced Compliance Department will keep landlords up to date on housing standards and your Property Manager will ensure that your property meets all regulatory requirements without any hassle.

Rent restrictions

Rent increases will be limited to once per year and they must reflect the current market rate. Unscrupulous landlords will not be able to double rents for no reason!

Q. How will Benham and Reeves help?

A. Our Letting Managers are all extremely experienced and offer a structured rent review process. With 21 branches spread throughout London, our teams are both fully trained but importantly local experts enabling us to provide real local market evidence to justify rent increases and handle all the necessary paperwork, including issuing notices to tenants, where required.

End to “Fixed-Term” tenancies

Tenancy agreements will no longer be fixed and will become periodic , meaning tenants will be able to terminate their rental agreement at any time by providing two months’ notice.

At Benham and Reeves, we usually give tenants 2 month notice break clauses anyway as tenants are by their nature transient and may move for work, so this change is not a big change for our landlords.

However, Landlords will now only be able to end tenancies with a genuine reason such as wanting to sell or move back into the property to live there (see below point 5 which gives more detail) and therefore as tenants will be able to stay as long as they want, landlords must be extremely careful with the tenant they accept and choose reliable tenants.

Q. How will Benham and Reeves help?

A. Benham and Reeves’ stringent tenant referencing system ensures any tenants we introduce are fully checked out – equally important is that as a large proportion of our tenants come from overseas, we know they will generally stay 2-3 years.

Ban On bidding wars

Landlords will no longer be allowed to accept offers above the asking price. This regulation is aimed at preventing unfair competition among tenants.

Q. How will Benham and Reeves help?

A. Our team’s local market knowledge ensures landlords receive accurate rental valuations from the outset, avoiding bidding wars while securing the right tenants.

Section 21 evictions scrapped

Landlords will not be able to evict tenants without a valid reason.

The grounds for eviction will include

– Rent arrears;
– Anti-social behaviour;
– If the landlord needs to sell the property;
– If the landlord wants to move back in to the property and self-occupy;

Q. How will Benham and Reeves help?

A. Our experienced team will assist landlords with following the law to evict the tenant, ensuring the process is handled professionally, effectively and within the law. We will be on hand to guide landlords through any challenging situations.

Property portal

Landlords will need to register their property on a new digital property portal. This system will help track that every property is fully compliant with all regulations.

Q. How will Benham and Reeves help?

A. Benham & Reeves will help landlords register on the portal by providing landlords with full guidance including ensuring your property is compliant.

Pets

Tenants can insist on permission to keep pets in their rental property. Landlords will only be able to reject such a request if it is against the terms of the Head Lease or have a valid reason to, such as they will be moving back in afterwards and have asthma and are highly allergic – proof will be required to reject.

Q. How will Benham and Reeves help?

A. Benham & Reeves are already very experienced in dealing with tenants with pets – we manage many tenancies where the tenants have a pet and through management inspections are able to ensure tenants comply with the terms of their tenancy and do not allow damage. In addition, comprehensive pet Damage Cover is available which will help landlords register on the portal by providing landlords with full guidance including ensuring your property is compliant.

Keeping London landlords one step ahead

We support the new reforms as they are aimed at improving standards in the UK housing market and while many landlords may be concerned, we are here to give clarity and guidance to ensure our landlords do not have to worry.

By engaging with Government and being part of several tenant and landlord groups, we are able to closely monitor the Renters’ Rights Bill to ensure our landlords need not be concerned.

Our team based at our 21 branches in London are happy to provide expert advice to ensure our landlords remain compliant while continuing to maximise their income and the value of their property.

For more details on the Renters’ Rights Bill, read our recent blog – “Navigating the Renters’ Reform Bill,” or contact us at info@benhams.com.