The Renters’ Rights Bill is set to cause significant changes for anyone relocating to England looking to rent a property – including those who have already relocated and are currently renting. The Bill is currently passing through Parliament and could become law in mid-2025. Some parts of the law may take effect immediately, while others will take effect at a later date. The Icon DSP team are fully trained and up-to-speed on the proposals and possible wider impact of the Bill so we are prepared for when the changes do take effect. However, it is important to be aware of how the Bill may impact home search services in England. In this article, we will take a look at the proposed changes, what impact they might have as well as the impact the Bill is already having.
What is the Renters’ Rights Bill?
The Renters’ Rights Bill is a proposed law reforming the rental sector in England. The Bill is currently passing through the UK Parliament. If passed, it will transform the way that tenants in England rent and will therefore have wider implications for home search services.
The key proposed changes are:
- Abolition of Section 21 no-fault evictions: Landlords will only be able to evict tenants based on established grounds for possession, with the appropriate notice given (2 weeks – 4 months depending on the reason).
- Periodic tenancies: Assured Shorthold Tenancies (ASTs) will no longer be fixed-term. All ASTs will be periodic, with tenants able to give notice to leave at any time. This is currently not proposed to apply to corporate lets, where a company rents a property on behalf of a tenant or tenants.
- Private Rented Sector database: Landlords will need to be registered on a Private Rented Sector database before renting a property. Ending bidding wars: Landlords will not be able to accept offers for a property above the asking rate advertised.
- Grounds for possession: The Bill proposes new restrictions for landlords to re-gain possession of a property, including defining grounds for possession and extending the notice required in some circumstances. For example, if a landlord wants to sell or move into a property, 4 months’ notice will be required.
- Requests for pets: Landlords will not be able to ‘unreasonably refuse’ a request to keep pets in a property.
- Private Rented Sector Landlord Ombudsman: A new Ombudsman will be introduced to resolve complaints from tenants about their landlord.
What effect might the Renters’ Rights Bill have for relocation?
Flexible tenancy lengths
One of the most certain and significant changes for relocation is the introduction of periodic tenancies, instead of fixed terms. This will give relocators greater control over their tenancies. If an assignee finds that they unexpectedly have to return home mid-assignment, they will – once the Bill takes affect – be able to give notice to end their tenancy at any stage. This is also likely to apply to anyone who has already started their assignment and is currently renting once the rules take effect for existing tenancies.
Lower stock levels
Many landlords are unhappy about the changes proposed. Unhappiness is especially in relation to the abolition of Section 21 evictions and the end of fixed-term tenancies, which some landlords feel will give them less control over their properties. Some landlords have already indicated that they are likely to leave the rental market and sell their properties. If many landlords sell up, there may be a shortage of rental properties, potentially giving assignees fewer options and making it more difficult for them to secure a property.
An increase in asking prices
As landlords will no longer be able to accept rental offers above the asking price, it is very likely that it will become standard practice for properties to be ‘overpriced’ to maximise the potential rent. Depending on demand, it may become more common for below-asking offers to be accepted. This could make determining a budget more difficult for assignees since there will be a greater discrepancy between the asking price of a property and the price a landlord would be willing to accept. If this becomes the case, Icon will continue to work closely with estate agents to ensure we are showing properties at a suitable rental price for assignees.
More unfurnished properties
Another indirect consequence of the Bill is that landlords may be more likely to rent out their properties unfurnished in future. Currently, many assignees relocating to UK cities benefit from the high proportion of furnished rental properties in highly populated areas. Furnished properties offer significant convenience and cost-savings for assignees – with the majority of furniture (including beds, wardrobes, sofas, tables, etc.) already present, assignees do not need to worry about either shipping their existing furniture or purchasing/renting new furniture. However, with the increased uncertainty over the length of periodic tenancies, landlords will be looking for creative ways to encourage tenants to stay longer. If tenants have to buy furniture for a property, it makes it far more difficult to move home and acts as an incentive to remain in the property.
More detailed applications
Currently, it is common for landlords to accept applications based largely off the rental price offered, the proposed tenancy length and the potential cost or hassle of any requests (such as repainting, removing items, keeping a pet, etc.). However, with landlords no longer able to accept offers above the asking price and the vast majority of tenancies having no fixed term, it will be more challenging to entice landlords to accept an offer. On top of this, the abolition of section 21 evictions means that landlords may get ‘stuck’ with a problematic tenant they can’t evict. Landlords are likely to want to get more of a feel for potential tenants before accepting an offer. In practice, this may look like more extensive or personal applications and it may even become more common for landlords to want to meet applicants.
Higher rents
As well as an increase asking prices, additional costs relating to registering for the Private Rented Sector database are likely to be passed onto tenants through rent.
Preference for corporate lets
As the changes bringing in periodic tenancies will not (as it stands) affect corporate lets, some landlords may be more favourable towards corporate lets over private rentals. If the market becomes too challenging for a successful home search, corporate lets may be an option to ease the pressure and give assignees a helping hand in their home search. Icon will always work with our clients to advise on the best course of action for the market conditions.
Is the Renters’ Rights Bill affecting home searches already?
Since the start of 2025, our in-house team have seen many changes to the market conditions – many a direct result of the Renters’ Rights Bill. As always, our team are doing everything possible to enable a smooth journey for assignees.
Fewer properties available
Many landlords have already taken their properties off the rental market and listed them to sell. As a result of there being fewer properties available, assignees may see fewer options on their home search day(s) than in recent months.
Higher turnover of properties
Properties are being taken off the market at a faster rate than we have seen in recent years. It is not uncommon for viewings to be cancelled almost immediately after booking as an offer is accepted on the property. This means that assignees’ home search itineraries are more likely to change throughout the day. To maximise the assignee’s options, we may schedule viewings outside of the home search day for the assignee to view at their earliest convenience.
Tenancy lengths
Many landlords are asking for a longer tenancy term (2-3 years), believing that it might delay the application of the new rules to the tenancy. As it stands, the rules are set to apply to existing tenancies at the same time as new tenancies. Alternatively, some landlords are looking for shorter terms or a 6 month mutual break to allow them to sell their property before the changes come in. As the Bill has not yet become law and is still subject to change, we would not recommend signing on for a tenancy length you are unable or unwilling to commit to. At Icon, we pride ourselves on our strong working relationship with all leading lettings agents and will, wherever possible, work towards a favourable term for all parties. However, there may be cases where you have to pass on a property to avoid a long tenancy length.
The return of bidding for properties
So-called ‘bidding wars’ have seen a return in recent weeks. Due to the low number of properties currently available, tenants are seeking to secure a property by offering over the asking price. Usually, we would aim to avoid engaging in a bidding war. However, with the current imbalance of stock levels and demand, there may be cases where it is unavoidable. If an assignee gets involved in this situation, we will advise them accordingly how best to respond.
The Icon team are experts in the changing conditions of the rental market and will work to ensure every assignee has a seamless home search experience. If you have any questions about the impact of the Renters’ Rights Bill on your home search or tenancy, our team would be happy to help.
