29/05/2025
Renters Right Bill
The Renters’ Rights Bill is expected to become law this year and will introduce significant reforms to the private rented sector in England. The changes are designed to improve tenant rights and raise housing standards, but they also bring new responsibilities for landlords.
This is a good time for landlords to understand what is coming, consider the potential impact on their business, and begin planning accordingly.
Changes to Tenancy Structure
The Bill will abolish Section 21 evictions. This means landlords will no longer be able to end a tenancy without giving a reason. All tenancies will become periodic by default, with tenants able to end their tenancy at any time by giving two months’ notice. Landlords will need to use specific legal grounds if they wish to regain possession of their property.
These grounds include moving into the property, selling it, or responding to tenant behaviour such as rent arrears or antisocial conduct. In some cases, landlords will need to wait twelve months after a tenancy begins before using certain grounds, and must give four months’ notice if they wish to repossess the property to sell or move in.
New Legal Requirements
The Bill introduces a number of new legal obligations. These include:
Joining a mandatory Private Rented Sector Landlord Ombudsman Scheme
Registering on a new national Private Rented Sector Database
Updating tenancy agreements to reflect changes in the law
Considering reasonable requests from tenants to keep pets in the property
Complying with the Decent Homes Standard, which will now apply to the private rented sector
Avoiding rental discrimination against tenants with children or those in receipt of benefits
Ending the practice of rental bidding by setting and advertising a fixed asking rent
Failure to meet these requirements may result in financial penalties, limitations on repossession rights, or legal action.
Financial and Operational Considerations
There may be additional costs and administrative work for landlords. This includes time spent updating tenancy documents, ensuring compliance, and potentially upgrading properties to meet new standards.
However, there are also potential benefits. Tenants who feel secure and well-treated are more likely to remain in a property long term. This can reduce void periods, improve rental income consistency, and reduce arrears. Well-maintained properties that meet modern standards may also retain or increase their value over time.
It is important to note that landlords will still be able to increase rents once per year, in line with market rates, by serving a Section 13 notice. Tenants will have the right to challenge any proposed increase through the First-tier Tribunal if they believe it exceeds market value.
What Landlords Can Do Now
Although the exact implementation date is yet to be confirmed, the Bill is likely to come into force later this year, possibly from October. Landlords should consider taking action now to prepare.
Review tenancy agreements to ensure they reflect the upcoming changes.
Check compliance with minimum housing standards and consider if any upgrades are needed.
Ensure awareness of the new ombudsman and database registration requirements.
Assess your property portfolio to identify underperforming properties or those that may require investment.
Discuss your longer-term strategy with a professional adviser if you are considering refinancing, selling, or restructuring your portfolio.
Supporting Clients Through Change
These reforms are significant, but not unexpected. Landlords have successfully adapted to major regulatory changes in the past decade, and many already meet or exceed the standards being proposed.
The Renters’ Rights Bill seeks to improve outcomes across the private rented sector. With timely preparation and professional support, landlords can navigate the changes with confidence.
