On the 11th of September 2024, the UK Government moved forward with significant reforms to the legislation governing the private rental market. The landscape will now change significantly for both landlords and tenants.
The fundamentals of rental agreements and protection for tenants remain the same, but the recent Renters’ Rights Bill is designed to eliminate unfair practices, improve tenant security, and provide a more regulated environment for landlords.
When is the Renters’ Rights Bill likely to become law?
The Bill is currently in its final legislative stages. On 08 September 2025 the House of Commons considered the Lords’ amendments and disagreed with the same. The Bill is now scheduled to be considered again by the House of Lords on 14 October 2025.
It is difficult to predict exactly when the Bill will receive Royal Assent, but the legislative process is likely to complete by early 2026.
Once the Bill receives Royal Assent, it is expected that the government will provide for a transition period to facilitate a smooth transition, which is of particular interest to landlords. Specific details of the transition period, and its application to various provisions of the Bill, are yet to be released.
Our expert team of solicitors at Scott Bailey regularly review changes to governing laws and regulations that could affect our clients and have put together the following blog explaining the highlights of the new Renters’ Rights Bill*. If you have any questions, you can reach out to us today.
What is the Renters’ Rights Bill?
The Renters’ Rights Bill is a major piece of UK legislation that governs the private rental sector in England. While its primary focus is on enhancing tenant rights, landlords must carefully consider how these changes will affect them. The Bill introduces both opportunities and challenges, particularly around tenancy agreements, possession rights, rent increases, and property standards.
What does the Renters’ Rights Bill mean for Landlords?
With the Bill aiming to provide greater security for tenants, there are several new obligations on landlords. As a landlord, it’s important to navigate these new regulations in order to protect your investments and ensure you remain compliant, all the while, of course, maintaining profitability in a constantly evolving market.
These are the most important aspects of the new Bill for landlords:
Abolition of section 21: “no-fault evictions”
One of the biggest changes to the Renters’ Rights Bill is the abolition of Section 21 “no-fault evictions.” In the past, landlords have been able to ask tenants to leave without providing a specific reason. Now, landlords must rely on legal grounds (Section 8 grounds) to evict tenants, such as rent arrears or anti-social behaviour amongst others. This offers renters greater stability in their homes but means landlords need to be clear with their contracts and plan ahead when it comes to renting their properties.
No more fixed-term tenancies
Assured shorthold tenancies (ASTs) have been a fundamental part of the private rental market to date, providing a reliable framework for landlords and tenants alike. Removing ASTs will mean transforming the private rental market. Once the Bill comes into force, all residential tenancies will become periodic (even if you have an existing fixed-term tenancy agreement). This is good news for tenants as it means they will have greater flexibility to stay as long as they wish in their homes, and as a landlord, you can only stop this if you have a valid legal ground for possession (currently known as Section 8 grounds).
Tenants will still need to provide their landlords with two months’ notice to leave. Tenants are only required to give 1 month’s notice at this time; however, it looks like this will increase to 2 months’ notice due to the Bill. This means that landlords will no longer be able to rely on fixed-term agreements, which, of course, has an impact on what can be considered a means of guaranteed income for a specific time period. However, landlords will still be able to reclaim their properties in specific circumstances, such as if they wish to sell, or move into it themselves, but they must provide the tenant with four months’ notice in those cases.
Restrictions on rent increases
The new Bill limits how often you can increase rent as a landlord – once per year, with a two months’ notice to tenants. We asked Michelle at Spotlight Homes, who confirmed that “these yearly increases must also reflect the market rate, and landlords will need to be more strategic in setting the rent at the beginning of tenancies.” While this is not rent control, it does introduce what Spotlight Homes aptly describes as “rent suppression.” Landlords can still increase rent, but they should be prepared for potential delays if tenants appeal through the First-Tier Tribunal, which could lead to extended periods of rent stagnation.
No more bidding wars!
Under the new law, landlords and letting agents will no longer be allowed to solicit higher offers from tenants after the rent has already been set. So, landlords should consider pricing their properties closer to the market rate from the outset. The change is designed to create a fairer rental market, particularly in areas of higher demand. However, some landlords may now turn to other short-term solutions like Airbnb as an alternative.
Greater allowances for pets
Under the new rules, blanket no-pet policies will no longer be permitted. Tenants will have the right to request pets, and landlords cannot unreasonably refuse – but they can require tenants to cover the cost of pet insurance to protect the property from potential damage, allowing them to remain in control of their property’s condition without having to outright ban pets and potentially deter tenants.
Enforcements, penalties, and a new Ombudsman
With the new Renters’ Rights Bill comes a new Ombudsman service for the private rented sector, and all landlords must join and adhere to the new regulations. If they don’t, tenants are able to lodge free complaints via the Ombudsman. Additionally, all landlords are required to register with a private rented sector database, which provides local councils with data for more effective oversight and enforcement.
As a landlord, it is essential you stay up to date with the Bill’s progression, and comply with the new rules, to avoid fines and even criminal prosecution.
Awaab’s Law and property standards
The new Renters’ Rights Bill will see Awaab’s Law, and the Decent Homes Standard added to the private rental sector, to protect tenants living in hazardous conditions (such as damp and mould), and to improve general living conditions.
As a landlord, this means your rental properties must be safe, high-quality homes that do not pose a risk to your tenants. Non-compliance could result in fines of up to £7,000 for minor breaches, and up to £40,000 for serious or repeated offences. Additionally, landlords will need to ensure that their properties have a minimum EPC rating of C by 2030.
The Renters’ Rights Bill has passed the Second Reading and is due for deliberations at the Committee Stage. As the Bill is debated in the various incoming stages of the parliamentary process, provisions may be further added, removed, or altered.
The Renters’ Rights Bill marks a major shift in the private rental sector, affecting both landlords and tenants in substantial ways. While the Bill is largely focused on protecting tenants, landlords can still operate successfully within the new framework by making the adjustments required. The abolition of Section 21 and the shift to periodic tenancies will mean that landlords will need to be much more diligent with tenancy agreements, take a proactive approach to property maintenance, and think strategically about rent costs.
By staying informed and compliant, conducting more diligent tenant vetting, better documentation, and regular inspections, good landlords will continue to offer attractive rental properties, maintain good relationships with their tenants, and ensure a steady income.
If you’d like to speak to our expert solicitors about any aspect of landlord or tenant law, reach out to us today. We can help with residential tenancy agreements, commercial leases, possession proceedings, rent recovery, lease extensions, enfranchisement, service charge disputes, and we can advise on all aspects of issues and responsibilities.
With special thanks to Spotlight Homes, one of the excellent estate agencies we work with in the New Forest, for collaborating with us on this blog.
