Currently in its final stages of the legislative process, the Renters’ Rights Bill is expected to reach Royal Assent by September 2025. Once passed, the bill will significantly impact landlords, shifting the balance of power in the rental market.
While the bill aims to provide tenants with more security and rights, landlords may suffer and benefit from its implementation, so landlords need to understand what the bill might mean.
At Lyons Estates, we work closely with dozens of landlords, so we have made it our mission to understand the bill better to support our clients through the transitional period. In this guide, we will outline exactly what landlords in Liverpool need to know about the Renters’ Rights Bill.
Key Changes in the 2025 Renters’ Rights Bill
If you are a landlord, you must familiarise yourself with the upcoming Renters’ Rights Bill so that you are prepared and able to adjust to any changes.
Abolition of Section 21 ‘No-Fault’ Evictions
The biggest update that has come from the back of the Renters’ Rights Bill is the abolition of Section 21.
This means landlords can no longer serve no-fault notices to tenants. This adjustment reassures renters of not fearing eviction without prior notice, but it does mean that landlords may find it difficult to remove tenants, and landlords could also face consequences if they don’t adhere to these rules.
Introduction of a Single System of Periodic Tenancies
The Bill suggests removing fixed-term tenancies and substituting them with rolling periodic ones that last until the tenant or landlord issues notice. This will significantly impact real estate in Liverpool, with many people frequently moving in and out of the city for work or student commitments.
Though this offers tenants flexibility, it may lead to uncertainty for landlords.
Stronger Grounds For Section 8 Evictions
In place of Section 21 evictions, the government is now expanding the Section 8 process. This means that there will be new grounds for legal eviction, such as allowing landlords to evict to move into or sell a property and solidifying grounds for eviction for rent arrears or anti-social behaviour.
This, in place of Section 21 evictions, ensures that landlords still have the right to remove tenants from their properties, that the tenant doesn’t gain complete control over the situation, and that the tenant is still protected from unfair eviction.
This change means that landlords can take advantage of investment opportunities, such as buying new property, without being locked into ownership due to current tenancies.
New Ombudsman Scheme For Landlords
A new ombudsman scheme is set to be introduced for all landlords in England. The new body is committed to settling tenant complaints without the need to go to court.
This means that tenants will have access to a more formal route to raise concerns about property standards, communication, or management, that landlords will be held accountable if they are not fulfilling their duties, and that it also provides a platform to resolve disputes quickly and fairly.
With this being introduced, it is more important than ever to have a letting agent in place to ensure that all queries and complaints are handled before they escalate. This will save you time and ensure that you don’t have to go through the ombudsman process.
Property Portal For Compliance
A centralised digital property portal will be established to enhance compliance and transparency. Landlords must register each rental property and upload key documents such as gas safety certificates, EPCs, and deposit protection details.
This can be a lengthy process, but it is essential to ensure compliance with new regulations. Working with estate agents, such as our realtors at Lyons Estates, can help ensure that your information is accurately entered into the portal and that you do not suffer consequences for noncompliance.
Limits on Rent Increases
The Renters’ Rights Bill also introduced limitations on rent increases for rented property. Under new regulations, rent increases are limited to one per year, and landlords must give two months’ notice before any increase.
This has been implemented to challenge ‘unfair’ rent increases, but it does mean that landlords may face new challenges when trying to price their properties.
For landlords who manage properties in the best high-demand areas in Liverpool, such as Bootle or Litherland, regular market reviews must be held to ensure that you’re not underpricing the value of your property.
If you’re not sure how to track the pricing or you need extra support, we suggest hiring an estate agent in Merseyside. They will have the relevant knowledge and can give you an accurate valuation.
What This Means For Liverpool Landlords
Now that you know more about the new regulations under the Renters’ Rights Bill, you might wonder what they mean for you as a landlord.
Tenant Stability
With periodic tenancies, tenants now have the right to leave with just two months’ notice, even if you had previously discussed letting them stay at the property for a longer period.
This means that your tenant stability may decrease, while the risk of void periods will increase. You may also have to invest more regularly in marketing the property, which could be costly.
On a positive note, this can also offer more flexibility, giving you freedom over your property in case you want to sell or move into it. The introduction of this regulation only highlights the importance of having a property management team to ensure you’re prepared for any tenant exits.
Eviction Clarity
Although eliminating Section 21 has caused concerns, it does not eliminate your right to repossess your property. You just need to provide a valid reason and the proper evidence.
If you are managing the property yourself, it is essential at this time to carefully document all communication with tenants and any inspections carried out. You have to be diligent in recording any breaches of tenancy agreements to ensure you have a clear, written record in case of future disputes or the need for legal proceedings.
Rent Management
Though new rent increase limitations exist, that does not mean you can’t raise rent entirely. However, you have to be fair and transparent. Remember to keep accurate records of your financial transactions with tenants and remain compliant with new regulations.
Impact on Portfolio Landlords
If you own several properties in Liverpool, ensure each complies with the new regulations, including registration on the property portal and providing fair tenancy conditions.
If you have multiple properties across Liverpool, such as HMOs or student properties, we would recommend that you have a management service in place if you don’t already, as this will ensure that you can comply with regulations and keep your properties in good condition.
Regional Considerations
Liverpool has an incredibly diverse rental market, with students, families and working professionals all calling Liverpool their home.
If you are a student landlord, you might face challenges because you are not sure that the student will remain in the property as agreed. This can present economic hardship if you are unable to reassign the tenancy.
Understanding your target tenant type and how reforms affect them will be crucial for successful property management moving forward. If you own property and are not local to the city, it can be challenging to plan effectively, considering Liverpool’s unique environment. In these cases, we recommend hiring property management services with local expertise.
How Lyons Can Help
We have made it our mission to stay current with the latest developments and regulations in the world of real estate and property so that we can ensure that all of the clients that we work with are equipped for the changes.
If you are looking for support, we can help in the following ways.
Support Navigating Legal Changes
If you are not experienced in the legal aspect of property ownership, you may be overwhelmed by the new legal changes. If you want to rent your property but are scared that you do not have the knowledge to remain compliant, we will help you through the process and ensure that you understand the new changes.
Professional Property Management Services to Stay Compliant
At Lyons Estates, we help you sell and buy property and offer a complete professional property management service. We won’t just ensure that your property is maintained to a high standard; we will also represent you in ensuring that you remain compliant with these new changes, helping you build a respectable reputation in the city.
Regular Landlord Updates as Legislation Evolves
It’s important to note that the bill has not been passed yet, and there is still the chance that changes will be made, which you might not be aware of if you do not actively keep up to date with the legislation.
We make it our job to be aware of any updates, and we are more than happy to share any changes with our clients to educate them on the matter.
Local Market Expertise
At Lyons Estates, we were born and raised in Liverpool, and we know the city better than most. We cannot only provide all of our clients with fantastic service but also share years of local market expertise.
As we manage properties across the city, we understand the price of properties in the different Liverpool areas, so we can advise you on how to price your property for sale or rent. We also stay updated with local news and trends, allowing us to position our clients well.
Ensure Compliance by Working With Lyons Estates
This guide should have provided you with the information you need to stay up to date with the changes presented by the Renters’ Rights Bill. If you are a landlord who is looking to rent your property or even sell, given the latest updates, we’re here to help.
Get in touch today to find out how our team can help you.
