Lawhive’s UK lawyer and head of legal operations, Daniel McAfee, reflects on the Bill’s potential to transform landlord-tenant dynamics, with major changes to financial obligations and tenant protections affecting all rental agreements.

He said:

“The ban on “no-fault” evictions, which would abolish Section 21 evictions, fundamentally alters the balance of power between landlords and tenants. While this move is designed to provide greater security for tenants, it may inadvertently lead to an increase in disputes. Without the ability to evict without cause, landlords may become more stringent in their tenancy agreements and more likely to pursue legal action to regain possession when issues arise. This could increase the burden on courts, which would need to handle a surge in possession claims where landlords are required to demonstrate “robust grounds” for eviction.”

“Restrictions on in-tenancy rent increases could lead to future legal challenges, particularly if rents fail to keep pace with market inflation. Landlords may argue that such restrictions interfere with their ability to maintain a fair return on investment. The law will need to strike a balance between protecting tenants from excessive rent hikes and allowing landlords to adjust rents in line with economic conditions.”

“The proposed amendment to the Renters’ Rights Bill, prohibiting landlords from requesting or accepting more than one month’s rent in advance, is a significant step in rebalancing the relationship between landlords and tenants. This move seeks to address affordability challenges faced by tenants, particularly in the current climate of rising living costs.

“The law directly addresses one of the barriers to entry for tenants—large upfront costs. By capping advance payments, it provides greater accessibility for renters while curbing the potential for financial exploitation.

“Tenants gain more security against unfair practices, such as arbitrary demands for excessive upfront payments. This change also supports their ability to challenge unjust rent increases or evictions under broader tenancy reforms.”

McAfee explains how the law redefines landlord rights and responsibilities: 

“The proposed cap on in-tenancy rent increases could raise potential legal conflicts, especially concerning contract law and market pricing. Landlords may argue that the cap interferes with their ability to set rents at market rates, potentially leading to challenges based on contractual freedom. The cap will need to be justified as a reasonable measure to protect tenants, without unduly infringing on landlords’ rights to negotiate terms freely.”

“The law limits landlords’ ability to set financial terms that could disadvantage tenants, thereby shifting their responsibilities towards fostering a fairer and more accessible rental market. It aligns landlords’ obligations with broader societal goals of housing affordability and equity.

“Landlords should focus on efficient screening processes and consider alternative methods to secure tenancies, such as guarantor services or insurance products, rather than relying on large deposits or upfront payments.”

“Under Awaab’s Law, landlords who fail to address serious hazards such as damp or mold face significant penalties, including fines up to £7,000 and possible prosecution. Non-compliance could also lead to loss of rental income and damage to the landlord’s reputation, especially if tenants are empowered to take legal action. The law will likely prompt landlords to be more proactive in property maintenance, though it may also lead to disputes over the interpretation of what constitutes a “serious hazard.”

The UK lawyer advises on the compliance actions for landlords and penalties for non-compliance: 

“Landlords must review and amend tenancy agreements to ensure they do not stipulate advance payments exceeding one month’s rent. Property management systems should also be updated to reflect this change, and staff should be trained on the new requirements.

“Failure to comply could result in financial penalties, regulatory action, or potential legal disputes with tenants. Landlords could also face reputational damage, making adherence to the new rules essential.”

When it comes to implications of legal eequirements to accept tenants with children or those on benefits: 

“The legal requirement to accept tenants with children or those on benefits represents a significant shift in landlords’ rights to choose who they rent to. This measure aims to ensure fair access to housing, but it could be met with resistance from landlords who feel that their ability to manage risks is being compromised. The law will need to provide clear guidelines to prevent discrimination while protecting landlords from undue financial risk.”

Tenants can seek property standards without costly legal action: 

“The bill’s promise of “greater protections” for tenants aims to address long-standing concerns about tenant vulnerability in the private rented sector. However, these protections must align with existing landlord-tenant law, particularly the principle that both parties have rights and obligations. The bill will need to be carefully balanced to ensure that while tenants receive enhanced protections, landlords are still able to manage their properties effectively and fairly.”

“The proposed changes could include provisions that improve tenants’ access to compensation or alternative dispute resolution mechanisms. These measures ensure landlords are held accountable without requiring tenants to resort to costly legal proceedings.”

“The ban on “no-fault” evictions is likely to enhance tenant security in both the short and long term. In the short term, tenants will benefit from greater stability, knowing they cannot be evicted without cause. In the long term, this security could foster better tenant-landlord relationships and contribute to a more stable rental market. However, there is also a risk that landlords might become more selective or raise rents pre-emptively to mitigate perceived risks.”

“If landlords are required to provide justifiable reasons for eviction, the courts will likely face an influx of possession claims. The need to establish robust grounds could lead to more protracted and contested cases, slowing down the eviction process. The courts may need to adapt by streamlining procedures or increasing resources to manage the expected surge. However, this could still result in delays and increased costs for both parties, potentially exacerbating housing shortages as properties remain tied up in legal disputes.”

Tenancy terms, agreement endings, and maintenance standards under new amendment explained: 

“The law will likely introduce changes to tenancy agreements, particularly around renewals and termination conditions. This could result in more transparent and tenant-friendly terms.

“By encouraging affordability, the law indirectly promotes greater tenant stability. Additionally, new rules are expected to reinforce landlords’ obligations to maintain properties at a decent standard, providing tenants with more recourse to address substandard conditions.”

The lawyer advises on addressing substandard living conditions and eviction protections: 

“The Bill also bolsters eviction protections by eliminating practices that disproportionately affect tenants unable to meet excessive financial demands at the outset of a tenancy.

“The law reinforces tenants’ ability to report and resolve complaints about substandard living conditions. Landlords may face stricter oversight, ensuring properties meet legal safety and maintenance standards”

McAfee added: 

“This proposal is a welcome move for tenants, but landlords and property managers must be proactive in understanding and complying with the new requirements. While campaigners have celebrated the measure as a victory for tenant rights, critics from the property sector argue it may introduce additional burdens on landlords, potentially impacting rental availability.

“Balancing these concerns will be key as the Bill progresses through Parliament.”