How can private registered providers prepare for the Renters’ Rights Bill?

What changes can PRPs expect?

The biggest change is the abolition of assured shorthold tenancies (ASTs) and the end of fixed-term tenancies. With this change, PRPs will no longer be able to use ASTs with a 12-month probationary period as ‘starter tenancies’. Instead ASTs will automatically convert to assured periodic tenancies. All new tenancies will be deemed to be assured periodic tenancies regardless of their description.

As well as the elimination of ASTs and probationary periods, Section 21 notices allowing a ‘no fault’ paper only possession procedure will be abolished. This route to possession is being replaced with new and amended grounds which aim to give landlords alternative routes to regain possession.

Stepping stone accommodation however will be covered by an entirely new ground for possession. Transitional housing schemes will now need landlords to include ‘eligibility criteria’ in agreements before ground 5H can be used.

Landlords providing supported housing will also need to be aware of specific changes affecting them, including provisions for situations where funding for support is lost or when tenants no longer require support services. Additionally, new grounds will cover homelessness accommodation when local authorities determine they no longer owe a duty.

Otherwise, shared ownership leases will be treated as long leases. Whilst this may increase the popularity of shared ownership with prospective purchasers and mortgage lenders, for the purposes of possession, the forfeiture procedure will instead apply which is more complex and slower.

What can PRPs do to prepare for these changes?

With the upcoming changes in mind, PRPs need to be proactive in their approach and make sure they are prepared. For example, reviewing and updating tenancy policies and procedures, and reviewing the tenancy agreements being used.

We know that the abolition of AST will be introduced to cover the private renter sector first, but it will then be rolled out to PRPs at a later date. This is still likely to be rolled out to PRPs in 2026, so there is time to prepare for the changes. In addition, PRPs and charities who qualify to use ground 5H should now include this in any tenancies to futureproof current agreements. 

Amendments made 14 January 2025

Most of the changes that relate only to private landlords are summarised below: 

• Limit on rent in advance: Landlords may be restricted from charging more than one month’s rent upfront.
• Ombudsman fees: Private Landlords to contribute to a national database, with fees helping to fund the rental ombudsman.
• PRS (Private Rented Sector) database updates: The database may now include the landlord’s or managing agent’s name, address, and contact details, along with records of enforcement actions and previous eviction notices.
• Student rental agreements: Landlords may be prohibited from locking students into rental agreements more than six months in advance.
• Bereaved guarantor protections: Guarantors may no longer be held liable for rent payments after the tenant’s death.

PRPs should follow the progress of the Renters’ Rights Bill in its final stages, and any further amendments, to make sure they are prepared. Proactive planning will help landlords navigate the changes and continue to provide an excellent housing management service for their residents. 

Key takeaways

The main changes following the Renters’ Rights Bill for PRPs are:

• Abolition of assured shorthold tenancies (ASTs) and fixed-term tenancies
• Automatic conversion of ASTs to assured periodic tenancies
• Elimination of Section 21 ‘no fault’ notices
• New ground (5H) for stepping stone accommodation
• New possession grounds provisions for supported housing and homelessness accommodation

PRPs can prepare by:

• Reviewing and updating policies, procedures, and tenancy agreements
• Including ‘eligibility criteria’ in agreements for stepping stone accommodation
• Closely following the Bill’s progress and amendments

For more information, please contact Helen Tucker.

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