Since the introduction of the Housing Act 1988 (the 1988 Act), the most common form of tenancy was the assured shorthold tenancy (AST), “shorthold” by virtue of the fact that a landlord could evict a tenant by serving a “section 21 notice” without having to provide any reason, giving the tenant two months’ notice to vacate provided this was consistent with the terms of the AST. The court would then be required to make a mandatory order for the tenant to leave if it did not do so within the notice period.

The Act has axed section 21 evictions for new and existing tenants, meaning landlords will need to use one of the (now expanded) grounds under section 8 of the 1988 Act to recover possession (more on that below). 

By contrast, tenants will be able to end their tenancies by giving two months’ notice (at any time from the start of the tenancy) with the end date aligning with the end of a rent period.

The Act abolishes fixed term tenancies, meaning that existing and new tenancies will become periodic, continuing from month to month until terminated under one of the section 8 grounds. This amendment does not apply to certain types of student tenancies, as explained below. 

Landlords will be able to end tenancies, but only in specific circumstances set out in section 8 of the 1988 Act. In an attempt to strike a balance between the interests of landlords and tenants, the “section 8 grounds” have been expanded under the Act. Additional grounds for possession include:

• Where a tenant is at fault, for example damaging the property, being in substantial arrears of rent or committing anti-social behaviour; and
• Where a landlord reasonably requires possession of the property for the purposes of selling or moving into the property. If a landlord relies on this ground, they are prohibited from re-letting the property (other than to family members) or marketing it for re-letting for a period of 12 months, starting from the date the notice to seek possession is served. 

Except in relation to tenant anti-social behaviour, landlords will not be able to gain possession if they have not complied with obligations in respect of rent deposit protection or registering their property on the private rented database (see below).

Tenants will benefit from a 12-month protected period at the beginning of a tenancy. During this time, a landlord will not be able to evict them, move in or sell the property. There are also new protections for tenants who fall into rent arrears with an increased threshold that the tenant must have at least three months’ arrears both at the time the notice is served and at the possession hearing (previously it was two months).

There is a prohibition on landlords requesting multiple months’ rent in advance of occupation. Instead, landlords can only request a tenant pays in advance for the next rental period, i.e., one month. The prohibition will exist even where the tenant voluntarily offers multiple months’ rent in advance to secure a tenancy. 

The Act will prohibit landlords and agents from rental bidding, or accepting offers above the advertised rent, with local authorities having the power to impose civil penalties of up to £7,000 for breaches.

Under the Act, landlords can continue to increase rent to market rate on a yearly basis, but to do this, they will need to serve a “section 13” notice setting out the new rent and giving two months’ notice for it to take effect. Tenants will then have the right to appeal rent increases through an independent tribunal if they believe the proposed rent exceeds market rate. The tribunal will determine the open market rent and consequent level of rent payable and will be able to require tenants to pay backdated rent increases, but only from the date specified in the landlord’s original section 13 notice. 

The government intends to introduce a new Private Rented Sector Landlord Ombudsman designed to provide quick, impartial and binding resolutions to tenants’ complaints against their landlords. Once established, all private landlords renting their properties by assured or regulated tenancies will be required to join this landlord redress scheme. Local authorities will have powers to act against those who do not join, or who market a private rented sector property without being members of the scheme. This will include civil penalties up to £7,000 for initial breaches, and up to £40,000 or criminal prosecution for continued breaches.

All landlords of assured and regulated tenancies will be required to register themselves and their properties, along with certain required information, on a new Private Rented Sector Database. Again, there will be civil and criminal penalties available for initial and continuous non-compliance.

Any request by a tenant for a pet in the property cannot be unreasonably refused and must be responded to in writing within 28 days. Landlords will not be able to require the tenant to provide insurance for pet damage or increase the initial deposit to cover such risks. 

The Act makes it illegal for landlords or agents to discriminate against prospective tenants in receipt of benefits or those who have children. This also provides that any terms in mortgages and superior leases restricting the letting of a property to private renters without children or who are on benefits, are of no effect.

Awaab’s law was put in place by the previous government following the tragic death of toddler Awaab Ishak, but this only applied to social landlords. The Act extends Awaab’s law to the private rented sector and sets out clear timeframes within which landlords must inspect and repair hazards in order to make homes safe.

The DHS set the minimum standards that social homes are required to meet and has been in place since the early 2000s. The Act applies DHS requirements to private rented sector properties, with the local authority having a range of enforcement mechanisms available. 

These allow tenants to claim a repayment of rent where a landlord commits certain offences under the Housing and Planning Act 2016, They are designed to deter landlords from non-compliance and give tenants a potential remedy against landlords. Under the Act, they are extended to superior landlords and applicable to a wider range of requirements, with the penalty being doubled to two years’ rent and repeat offenders having to repay the maximum amount. 

The position on student accommodation is complex and (beyond university-owned student lettings which are already outside the scope of the assured tenancy/AST regime of the 1988 Act) depends on the type of student accommodation being let.

PBSA is exempt from the new rules, meaning PBSA providers can offer new fixed-term tenancies to students aligned with the academic year, provided they have registered with a government approved code (current approved codes include the ANUK/Unipol and UUK codes, but more can be authorised by future regulations).  Existing PBSA tenancies will, however, convert to periodic tenancies under the Act, along with all other ASTs. However, PBSA landlords can use the new ground 4A (as described below).

Lettings of non-PBSA student accommodation will be periodic tenancies, whether granted before or after the Act comes into force. However, landlords of non-PBSA student accommodation will be able to rely on a new ground 4A to regain possession at the end of an academic year, provided the property is re-let to a new student or group of students in line with the academic year. To rely on this ground, landlords must give tenant’s a written statement of their intention to do so before entering into the tenancy. For existing student tenants under assured tenancies, this requirement is modified: landlords must issue the written notice of intention within one month of the new rules coming into effect.