By Payal Patel
The UK’s property laws are undergoing major reform. At the forefront is the Renters’ Rights Bill, aimed at boosting tenant protections across residential and commercial sectors. Alongside it, the Law Commission’s review of the Landlord and Tenant Act 1954 seeks to modernise commercial leasing. Together, these changes aim to rebalance power in the property market—though challenges remain.
The Renters’ Rights Bill: Enhancing Tenant Protections
Introduced in September 2024, the Renters’ Rights Bill represents a landmark initiative to overhaul
the rental landscape in England. Its primary objectives include abolishing "no-fault" evictions,
regulating rent increases, and improving housing standards. Key provisions of the bill are as follows:
1. Abolition of Section 21 No-Fault Evictions
The bill seeks to eliminate Section 21 of the Housing Act 1988, which currently allows landlords to
evict tenants without providing a reason. Under the new legislation, landlords must cite specific
grounds for possession, such as rent arrears, antisocial behaviour, or the intention to sell or occupy
the property themselves. Notably, landlords cannot rely on these grounds within the first year of a
tenancy and must provide at least four months notice for such evictions.
2. Transition to Periodic Tenancies
All new residential tenancies will become periodic assured tenancies without a fixed term, providing
tenants with greater security. Existing fixed-term tenancies will convert to periodic tenancies upon
the bill enactment.
3. Regulation of Rent Increases
Rent increases will be limited to once per year, with landlords required to provide at least two
months' notice using a statutory notice. Tenants will have the right to challenge rent increases they
believe are above market rates through the First-tier Tribunal (Property Chamber).
4. Ban on Rental Bidding Wars
To prevent tenants from being priced out through competitive bidding, landlords and letting agents
will be prohibited from inviting or accepting offers above the advertised rent. This measure aims to
promote transparency and fairness in the rental market.
5. Right to Request Pets
Tenants will have the right to request permission to keep a pet, which landlords cannot
unreasonably refuse. Landlords may require tenants to obtain pet insurance to cover potential
damages.
6. Prohibition of Discrimination
The bill will make it illegal for landlords to discriminate against tenants based on their receipt of
benefits or family status, such as having children.
7. Establishment of a Landlord Redress Scheme.
A new ombudsman service will be introduced, requiring all private landlords to join. This service will
provide tenants with a platform to resolve complaints and disputes with landlords impartially and
bindingly.
8. Creation of a Private Rented Sector Database
The bill mandates the creation of a comprehensive database containing key information about
landlords and rental properties. This resource will aid tenants in making informed decisions and
assist local authorities in enforcement activities.
9. Implementation of the Decent Homes Standard
A legal standard for property conditions will be introduced, extending the Decent Homes Standard
to the private rented sector. Local authorities will have enhanced powers to enforce compliance,
ensuring that rental properties meet basic living standards.
10. Strengthening of Enforcement Powers
The bill will expand rent repayment orders and increase penalties for non-compliance. Local
authorities will receive greater enforcement powers, including the ability to impose higher fines and
report on enforcement activities.
Reviewing the Landlord and Tenant Act 1954: Modernising Commercial Leasing
In tandem with residential reforms, the Law Commission is reviewing the Landlord and Tenant Act
1954, which governs commercial leasehold arrangements. The review aims to modernise the
commercial leasing framework to better reflect current market practices.
Potential updates include:
Reevaluating Security of Tenure: Balancing the rights of business tenants to renew leases
with landlords interests in property management.
- Simplifying Lease Renewal Processes: Streamlining procedures to reduce complexity and
legal costs associated with commercial leases. - Enhancing Flexibility: Introducing more adaptable leasing arrangements to accommodate
the evolving needs of businesses and landlords.
These proposed changes could significantly impact the commercial property landscape, potentially
shifting the balance of power between landlords and tenants.
Broader Implications for the Property Market.
Collectively, these reforms represent a significant recalibration of landlord-tenant relations. For
tenants, particularly in the residential sector, the Renters’ Rights Bill promises more robust
protections and a pathway to justice. In the commercial arena, modernizing the 1954 Act may
enhance flexibility and competitiveness but could also reduce security for vulnerable tenants if
safeguards are not retained.
However, the legal and administrative systems will need to adapt rapidly. Courts and tribunals,
already burdened by backlogs and funding constraints, may struggle to cope with the anticipated
increase in disputes. Investment in alternative dispute resolution mechanisms, legal aid, and digital
case management systems will be crucial.
Conclusion
The UK property law regime is undergoing one of its most significant overhauls in decades. With
the Renters’ Rights Bill advancing tenant protections and the Landlord and Tenant Act 1954 under
scrutiny, stakeholders across the property sector—tenants, landlords, lawyers, and
policymakers—must prepare for a new legal landscape. While the ultimate impact of these reforms
will depend on their final form and implementation, they reflect a clear policy intent: to make the
rental and leasing markets fairer, more transparent, and better suited to 21st-century realities.
Disclaimer: This article is for informational purposes only and does not constitute legal or financial
advice. The information is accurate as of 23 May 2025 and may be subject to change after this date.
Readers should consult qualified professionals for advice tailored to their circumstances.