The Renters' Rights Bill is likely to come into effect between Oct 2025-Jan 2026. Section 21 evictions will be abolished and all ASTs will become periodic.
The Renters’ Rights Bill is the most significant reform the private rented sector (PRS) has seen since the Housing Act 1988. First introduced to Parliament on September 11, 2024, the Bill has wide-ranging implications for landlords, tenants, and letting agents alike.
The Bill will:
- Abolish fixed-term assured shorthold tenancies (ASTs) - As a result of this, all tenancies will become periodic.
- Limit rent increases - The shift to periodic tenancies means Section 13 notices will be the only way for landlords to raise the rent; these can only be served once per year.
- Abolish Section 21 evictions - Landlords will no longer be able to serve “no-fault” eviction notices to regain possession of their properties.
- Expand Section 8 possession grounds - The Government is adding and updating both mandatory and discretionary grounds due to the abolition of Section 21.
- Ban rental bidding wars - Landlords and agents can’t accept offers above the advertised price.
- Introduce a landlord ombudsman - This will help resolve disputes between landlords and tenants impartially.
- Create a private rented sector database - Designed to compile information about landlords and properties and provide visibility on compliance.
- Apply the Decent Homes Standard - All rental properties must meet minimum quality standards.
- Prohibit discrimination - Landlords can’t refuse tenants on benefits or with children.
- Allow renting with pets - Landlords can't unreasonably refuse tenants with pets.
Fixed-term tenancies will be replaced
The new legislation will abolish fixed-term tenancies. All tenancies will become rolling periodic agreements by default. This means tenants will no longer be locked into six or 12-month contracts, offering them more flexibility and protection.
Section 21 ‘no fault’ evictions will be abolished
Landlords will no longer be able to evict tenants without a specific legal reason. Acceptable grounds will include:
- Selling, redeveloping, or demolishing the property
- A landlord or family member moving in
- Serious breaches of tenancy
- Persistent rent arrears
- If a landlord states, they intend to sell but then does not follow through with this then they will not be permitted to re-let the property for a further 12 months – a rule aimed at deterring misuse of the legislation. However, how this is to be monitored effectively has yet to be confirmed.
Rent increases will be more regulated
Under the new rules, rent increases can only take place once per year and must be issued through a section 13 Notice, giving tenants at least two months’ notice. Tenants will also have the right to appeal any proposed increase to an independent adjudicator at no cost if they believe it unfair.
Limits on rent in advance will be introduced
Landlords and letting agents will no longer be allowed to require or accept rental payments in advance for the entire terms of the tenancy. The bill will cap advance rent to one month (or 28 days for shorter rental periods) and only once a tenancy agreement has been signed. This change aims to prevent prospective tenants from being priced out of the market or pressured into unaffordable arrangements.
Rental bidding will be banned
Under the new rules, landlords and letting agents will no longer be allowed to accept or encourage offers above the advertised rent. The bill will require a set asking price to be published and adhered to, putting an end to bidding wars that have made it harder for many renters to secure a home. This measure is designed to improve fairness and transparency across the rental market.
Conclusion
Letting agents and landlords must prepare to comply fully with the new requirements once the bill is enacted. Landlords should begin reviewing their existing tenancy agreements, stay informed on the bill’s progress, and seek professional advice where necessary to ensure they remain compliant and well-prepared.
This is one of the biggest shifts we’ve seen in the rental sector for years, and while there’s still some uncertainty, landlords who take steps now to understand and prepare for the changes will be in a far stronger when the legislation finally comes into effect.
Landlords ‘could lose a year’s rent under renting reforms’
A ban on relisting a property for rental contained in the Renters' Rights Bill could leave landlords without any rent for 12 months. A clause in the Bill prevents property owners from renting out homes that fail to sell for up to a year.
The measure is designed to prevent landlords from evicting tenants ‘by the back door’ by going through the motion of selling, and then relisting as a rental soon afterwards. But if a former rental fails to sell due to a genuine fall-through then it cannot be rented out again for at least 12 months, the Daily Telegraph claims.
Chris Norris, Policy Director at the NRLA (National Residential Landlords Association), said “around a third of property sales fall through before completion, mostly as a result of problems faced by the buyer."
Government withholds court and tribunal impact of Renters’ Rights Bill
The government has refused to release a key piece of evidence on the impact of the Renters’ Rights Bill just weeks before it could be signed into law – preventing property professionals from scrutinising the biggest change to their industry in decades.
The Justice Impact Test for the Renters’ Rights Bill assesses its likely impact on the court system, including the projected number of court and tribunal cases it will lead to. This is expected to be high, as all evictions will have to go through the courts after Section 21 evictions are scrapped.
However, when Reapit requested access to the report, the government refused, saying that Justice Impact Tests are internal documents that are not normally published.
According to Dr Neil Cobbold, Reapit’s Commercial Director, “the government’s decision not to share the Renters’ Rights Bill Justice Impact Test raises serious questions about transparency and accountability. The estimate of changes in the number of court and tribunal cases is a vital tool for understanding how the legislation will affect the property sector – including case volumes – and whether the justice infrastructure is in place to support the change.”
In her reply to Reapit, Baroness Taylor, Parliamentary Under-Secretary of State at the Ministry of Housing, Communities and Local Government, said "the government expects the Bill to reduce the number of court cases in the long term. However, landlords report they are already facing long waits for hearings even under the current system."