Tenancy reform in the Renters' Rights Bill

This guidance is based on the wording of the Bill currently being considered in the House of Lords and may be subject to change. Check back regularly for further updates.

The Renters Rights Bill is expected to come into force later this year, bringing substantial changes to how your rental business will operate and the documents you use.

The Bill is currently passing through the House of Lords, and most expect it to receive royal assent later this year. The Government will then need to set a commencement date outlining when the new rules will apply.

The NRLA will continue to lobby for positive changes to the Bill up until this point. However, we do not anticipate any further movement. Therefore, it is crucial for landlords to start preparing now for the new regulatory regime. This early preparation will help you to adapt to the changes more effectively.

One of the most significant areas of change is around tenancy agreements. The Bill makes several substantial changes, such as - 

• Banning fixed term assured shorthold tenancies
• Amending the rules around ending a tenancy
• Implying new obligations into tenancy agreements that landlords must follow
• Changing the terms of superior leases
• Mandating the contents of tenancy agreements

This means that your tenancy agreements will have to change once the Bill becomes law.

This guide is designed to help you understand what is changing and the potential impact on your rental business, so that you can prepare for the new laws ahead of time.

Once the Bill becomes law (the commencement date), fixed-term assured shorthold tenancies will no longer exist. Instead, tenancies will be periodic assured tenanices from the outset.

This change also applies to fixed term ASTs entered into before the commencement date. These will convert to periodic tenancies on the commencement date. 

Tenancies must provide for the rent to be paid monthly (or for any period up to 28 days in length), and landlords cannot demand more than a month's rent at any one time.

For further information on rent setting, collection, and advertisements after the RRB, see our guide on this

While most landlords already provide a written tenancy agreement, the Bill will now make this a legal requirement for assured tenancies.

You must provide a written tenancy agreement to the prospective tenant before the tenancy is entered into (i.e. before the landlord signs it). It must include any terms or information that the Government requires.

Failure to comply with this duty can result in a civil penalty of up to £7,000 for the first offence. 

The Government can require you to include specific terms or information in your tenancy agreements. 

Details on what must be included in your tenancy agreement has not been published yet. It will require secondary legislation and is likely to be published after the Bill receives royal assent later this year. 

As soon as it is published, the NRLA will draft a new tenancy template for our members to use. This will include all the required information.

If your tenancy existed before the commencement date and you already have a written tenancy, you will have to provide some form of information to your tenants within a month of the commencement date.

The expectation is that this will be a government produced leaflet. However, this is not confirmed yet. We will inform members as soon as the details are finalised.

Importantly, if your current tenancy is a verbal agreement, you must provide a complete written statement. This will be difficult to do accurately, and we recommend negotiating a renewal now to get everything in writing and make your life easier after commencement.