What the Proposed Renters’ Rights Bill Means for Landlords & Tenants in 2025
The Renters’ Rights Bill is poised to bring some of the most significant changes to the private rented sector in England in decades. Below is an accessible breakdown of what the proposed bill could mean—for landlords, tenants, and the rental market at large.
Who Is Covered — And Who’s Exempt?
The Bill will apply to all Assured Shorthold Tenancies (ASTs), both new and existing. However, company lets and properties with annual rents exceeding £100,000 are excluded. The changes pertain to England, as the Bill amends the Housing Act 1988 to reform tenancy structures and possession grounds.
Major Proposed Changes
1. Abolishing Fixed-Term ASTs — All Tenancies Become Periodic
Fixed-term assured shorthold tenancies will be eliminated. All tenancies will become periodic (month-to-month) by default. Tenants may end the tenancy with two months’ notice, aligned to rent payment dates. For the first 12 months, landlords cannot rely on certain grounds—such as moving back into the property or selling—except in specific circumstances. Any existing pre-agreed ‘option to renew’ or ‘break clause’ will no longer apply under the new regime.
2. End of 'No‑Fault' Evictions (Section 21 Notices)
Section 21, the 'no-fault' eviction route, will be scrapped. Landlords must use Section 8 grounds for possession instead. The Bill introduces more comprehensive grounds for possession, such as selling or moving back into the property, and strengthens existing ones for rent arrears and antisocial behaviour. Notices must be served in a prescribed form, citing the relevant ground for possession, and court proceedings will be required if tenants do not vacate voluntarily.
3. Rent Increases & Bidding Laws
Rent increases will be limited to once per year, with at least two months’ notice. Tenants will have the right to challenge increases through a tribunal. Bidding wars—where tenants offer above the advertised rent—will be prohibited. Landlords and agents must publish a clear asking rent and cannot accept higher offers.
4. Decent Homes Standard & Awaab’s Law Extension
A Decent Homes Standard will apply to the private rented sector, requiring landlords to maintain minimum standards of repair, safety, heating, and insulation. Awaab’s Law will also be extended to private renting, mandating specific timeframes for landlords to fix serious hazards and disrepair issues.
5. Tenant Protections: Pets, Discrimination & Tenants on Benefits
Landlords must consider reasonable requests to keep pets and cannot unreasonably refuse them. They may, however, require pet insurance or additional deposits. It will also become unlawful to refuse tenants purely based on their income source (such as benefits) or family status (such as having children).
6. New Central Database & Ombudsman System
A digital private rented sector (PRS) database will be created, containing information about landlords, property compliance, and enforcement actions. A new PRS Ombudsman will also be introduced, offering landlords and tenants a simpler route to resolve disputes without needing to go through court.
Timing & Implementation
The Bill was introduced to Parliament in September 2024 and is expected to receive Royal Assent in summer or autumn 2025. Implementation may begin in late 2025 or early 2026. The new framework is intended to apply simultaneously to existing and new tenancies, meaning no phased rollout. This marks one of the most substantial amendments to the Housing Act 1988 since its creation.
What Landlords & Tenants Should Do Now
For Landlords & Agents:
• Review tenancy agreement templates and remove fixed-term language.
• Ensure recordkeeping is detailed and up to date.
• Prepare properties to meet Decent Homes standards.
• Reassess advertising practices to comply with new rent and bidding regulations.
• Stay informed about implementation timelines and legal guidance.
For Tenants:
• Expect greater security of tenure and fewer arbitrary evictions.
• Gain stronger rights to challenge rent increases.
• Enjoy higher property condition standards and improved safety.
• Experience fairer treatment regarding pets, benefits, and family status.
Risks, Challenges & Criticisms
While the reforms strengthen tenant protections, landlords may face reduced flexibility in managing properties. The court system could experience delays due to increased reliance on Section 8 processes. Compliance costs may rise, prompting some landlords to exit the market, potentially impacting rental supply. The practicalities of transitioning all tenancies at once could also pose operational challenges.
Conclusion
The Renters’ Rights Bill is designed to rebalance the landlord‑tenant relationship by enhancing tenant security, fairness, and housing standards. While the changes are significant, careful preparation can ensure a smooth transition. Landlords, tenants, and letting agents should begin reviewing agreements, upgrading property standards, and staying alert for the final details of the legislation.
How to Stay Informed About the Bill
Please see the published Bill and its journey through Parliament to date here
To help you stay informed, we’ll be adding ongoing insights and updates where you can follow the Bill’s progress and understand how it may affect landlords and tenants. We’ll also continue to share key updates as new information becomes available.
As always, if we can assist you or if you’d like to discuss how these changes might impact your property, please don’t hesitate to contact us.
