Landlords brace for new tenants’ rights

Landlords need to prepare for what is anticipated to be one of the most comprehensive overhauls of tenancy law in decades. Senior lawyers at Ellis Jones Solicitors stress the importance of readiness as the Renters' Rights Bill is expected to impact all private landlords and letting agencies in England once it passes in the coming months. They believe the proposed reforms represent a ‘significant shift’ towards improved tenant security, suggesting greater responsibilities will be placed on landlords and agents.

At a recent seminar held at Bournemouth’s West Hants Club, Solicitor Advocates Conor Maher and Dan Flynn discussed the progress of the Bill and its implications for the private rented sector. Conor, a Senior Associate and specialist in Dispute Resolution and Regulatory Law, remarked “The direction of reform is clear: a significant shift towards tenant security, transparency and regulatory oversight in the private rented sector. Landlords need to prepare now, not later, for the sweeping changes which will come into effect once the Bill passes its final legislative stages after the summer parliamentary recess.” Dan echoed this sentiment, stating “We must emphasise the importance of early preparation. We urge all landlords and letting professionals to stay ahead of the curve. Understanding the legal shifts now and adopting best practices in line with the expected reforms will minimise future disruption and potential legal exposure.”

The seminar was introduced by Ellis Jones Partner and Solicitor Matthew Clake, with insight from Senior Associate John McCarthy, who provided practical advice concerning the evolving legal landscape affecting landlord responsibilities and tenant rights. Key reforms under discussion include the abolition of fixed-term tenancies and Section 21 ‘no-fault’ evictions, as well as new rules around bidding, transparency, and rent increases. The Bill also proposes that landlords allow tenants to keep pets in rental properties and extends the Decent Homes Standard to private rentals while introducing an Ombudsman redress scheme.

Moreover, new restrictions are set to reshape current practices surrounding upfront rent. Currently, there is no cap on how much can be demanded in advance, often resulting in multiple months being required. However, under the Bill, landlords would only be permitted to request one month’s rent in advance, alongside a security deposit capped at up to five or six weeks’ rent.

The progress of this parliamentary Bill coincides with new requirements and potential penalties for letting agents relating to Anti Money Laundering regulations. Starting May 2025, agents will be mandated to screen all prospective tenants, landlords, and associated parties against a financial sanctions list once an offer is accepted. If a match is found or suspected, agents are legally obligated to report it to the Office of Financial Sanctions Implementation, regardless of the rental agreement's value, with non-compliance risking significant fines or even prison time for serious violations.

The seminar closed with a question-and-answer session, allowing attendees to address worries directly with the Ellis Jones panel. Dan noted the positive reception of the information shared, saying, “Many landlords are understandably concerned about the abolition of Section 21 and the future of possession rights. While the Bill aims to protect tenants, it’s essential that landlords understand how they can still navigate the legal framework to maintain control over their properties, legally and fairly. It’s certainly the biggest shake-up in this area of landlord and tenant law for more than 30 years.” In light of this rapidly changing landscape, Ellis Jones plans to continue hosting seminars as the Renters’ Rights Bill approaches implementation.