Property guides
The Renters’ Rights Bill: what it means for landlords
Last updated: May 7, 2025
The Renters’ Rights Bill is set to come into force later in 2025, and it will mean a number of big changes to the private rental sector in England. In short, it aims to create a more balanced rental market that considers both tenant protections, along with landlord interests.
We’ve laid out the changes that could affect landlords, so you can prepare for the changes, ahead of them becoming a legal requirement. We’ll be updating this guide as the government makes more announcements about the progression of the bill.
Introduction to the Renters’ Rights Bill
The Renters’ Rights Bill is new government legislation which seeks to update the private renting experience in England. The aim is to provide greater security for renters, while maintaining landlords’ ability to effectively manage their properties.
Although the bill is still working its way through Parliament and has not yet become law, it proposes several changes to how tenancies operate. Understanding these proposed changes now can help landlords ensure they are ready for when they are introduced, which could be later in 2025.
We’ll look at what these changes mean for landlords, plus some guidance on how to prepare for the switch:
- Abolition of Section 21 ‘No-Fault’ evictions
- Changes to Section 8 Eviction grounds
- Introduction of periodic tenancies (abolition of Assured Shorthold Tenancies)
- Changes to rent in advance
- Rent increase regulations
- Tenant rights to keep pets
- Impact on student lettings
- Private Rented Sector Landlord Ombudsman
- Private Rented Sector database
- Financial implications for landlords
- Preparing for the changes
Abolition of Section 21 ‘No-Fault’ Evictions
The bill plans to scrap ‘Section 21’ evictions – often called ‘no-fault’ evictions. Right now, landlords can use Section 21 to end a tenancy by giving tenants two months’ notice without needing to explain why.
If the bill becomes law, landlords would instead need to use specific grounds under Section 8 to regain possession. The government suggests this change would provide tenants with greater security in their homes and allow them to raise concerns about conditions without fear of retaliatory eviction.
Landlords will still be able to regain possession of their properties when they have valid reasons, such as wanting to sell the property, or move back in themselves. However, these grounds will now require evidence, and must follow specific procedures.
The full list of grounds and notice periods can be seen here.
Changes to Section 8 Eviction grounds
With Section 21 scrapped, the bill makes changes to Section 8 instead. Section 8 lists specific reasons why landlords can end tenancies. These come in two types: ‘mandatory’ grounds (where courts must order tenants to leave if the reason is proven) and ‘discretionary’ grounds (where courts can decide whether eviction is fair, even if the reason is valid).
New and amended grounds include:
- Property sale (mandatory): Landlords can regain possession if they wish to sell the property, but they cannot use this ground until month eight of a tenancy.
- Landlord occupation (mandatory): Landlords or their close family members can move into the property, but not during the first 12 months of a new tenancy.
- Rental arrears (mandatory): The threshold for mandatory eviction due to rent arrears will increase from 2 to 3 months of arrears, with the notice period extended from 2 to 4 weeks.
- Redevelopment (mandatory): Expanded grounds for possession when a property needs substantial renovation or redevelopment.
For grounds where the tenant is not at fault (such as the landlord wanting to sell or move in), the notice period will increase to 4 months, giving tenants more time to find alternative accommodation.
Landlords should be aware that they will need to provide evidence to support their chosen ground for possession. For example, if they are looking to sell their property, landlords might need to show they have instructed an estate agent and solicitor. There will also be new rules around putting a home back onto the rental market, after grounds are served to a previous tenant.
Introduction of periodic tenancies
The bill will end assured shorthold tenancies (AST) (such as 6 or 12-month contracts) and make all tenancies ‘periodic’ or open-ended instead. This means tenancies would continue until either the tenant decides to leave (giving two months’ notice), or the landlord has a legal reason to end the tenancy.
This change is designed to offer more flexibility for both parties. Tenants will no longer be locked into fixed-term contracts that might not suit changing life circumstances, such as needing to relocate for work. Meanwhile, landlords will still be able to end tenancies when they have legitimate reasons to do so.
Once implemented, the bill will require changes to existing tenancy agreements. It will convert all fixed-term tenancies to periodic tenancies – this will effectively end the need for renewing agreements at the end of a fixed term.
Changes to rent in advance
New rules would limit how much rent landlords can ask for in advance. When the bill becomes law, landlords couldn’t ask for more than one month’s rent upfront.
The bill would also stop landlords from asking for any rent before a tenancy agreement is officially signed. This means tenants wouldn’t have to pay rent to secure a property before the paperwork is complete.
For student rentals, the bill includes changes that would prevent students from being tied into rental agreements more than six months before they move in. This would give students more flexibility while still allowing landlords to plan for the academic year.
Rent increase regulations
The bill sets out simpler rules for raising rent. Landlords could still increase rent to match local market rates, but only once a year and by following these clear steps:
- Landlords must serve a ‘section 13’ notice, setting out the new rent.
- They must give at least 2 months’ notice before the increase takes effect.
- Tenants can challenge increases they believe exceed market rate.
The bill makes important changes to the Tribunal system to give tenants more confidence in challenging unreasonable increases. Specifically:
- Tenants will never pay more than what the landlord initially proposed, even if the Tribunal would have determined a higher market rent.
- Rent increases will not be backdated, protecting tenants from unexpected debt.
- In cases of undue hardship, the Tribunal may defer rent increases by up to 2 months.
These changes aim to prevent landlords from using excessive rent increases as a backdoor means of eviction, while still allowing reasonable market-based increases.
Tenant rights to keep pets
Under the new rules, tenants would have stronger rights to keep pets. Landlords would need to consider pet requests, and provide a reasonable reason for refusing.
To address landlord concerns about potential damage, the bill allows landlords to request pet insurance that covers damage to the property. This insurance requirement provides landlords with reassurance that any damage caused by pets can be addressed, without needing to pursue the tenant directly.
Before these new rules take effect, the government will publish guidance for both landlords and tenants on what reasonable grounds for refusal look like. Tenants who feel their request has been unreasonably refused will be able to challenge the decision through the new ombudsman service, or through the courts.
Impact on student lettings
The Renters’ Rights Bill also includes specific provisions for student accommodation. Universities and colleges that rent to students will have specific rights to take back properties at the end of the academic year, so they can get ready for new students.
For Houses in Multiple Occupation (HMOs) let to full-time students, landlords will have grounds to repossess the property if it is required for a new group of students, in line with the academic year. However, this ground cannot be used if the tenancy was agreed more than six months in advance of the tenancy starting.
Private Rented Sector Landlord Ombudsman
Under the proposed bill, all private landlords in England would need to join a new Private Rented Sector Landlord Ombudsman Service. This would apply even to landlords who use managing agents.
The ombudsman would handle tenant complaints about landlords and could require landlords to issue apologies, provide information, take action to fix problems or pay compensation. Decisions would be binding on landlords.
For landlords, the service could offer a quicker and more cost-effective way to resolve disputes compared to court proceedings. Landlords would also have access to guidance to help improve their complaint handling.
Registration would likely involve a small annual fee per property. Penalties for not joining could be severe – up to £7,000 for initial breaches and up to £40,000 for continued non-compliance.
Private Rented Sector database
The bill proposes a new database for rental properties that all landlords would need to join. There‘ll be a fee to register, which is as yet undecided, but the government have assured the amount will be proportional.
Landlords would have to register themselves, and their properties, on the database. There are penalties in place for letting out properties without registering them on the database first.
The database would work as a one-stop shop for information about legal obligations. It would provide landlords guidance, help them show they’re following the rules, and keep them updated about any changes to rental laws.
Tenants would benefit from more transparency, with access to information about properties before they decide to rent. This would help them understand their rights, and know when they can take issues to their local council or the new ombudsman.
Financial implications for landlords
The financial side of things will be different for each landlord. Though the bill doesn’t directly charge landlords new fees, there are some costs to think about.
These include:
- Registration costs: Landlords will need to register with the new Private Rented Sector Database and ombudsman service, which will involve registration fees.
- Potential for longer void periods: With the extended notice periods for some possession grounds, landlords may need to factor in longer timeframes when planning to sell or redevelop properties.
- Insurance implications: Existing insurance contracts that restrict letting to tenants with children or those receiving benefits will be exempt until renewal, but landlords may need to review their insurance arrangements.
- Potentially increased exposure to rental arrears: Because may become more difficult and take longer, landlords may wish to take our rent guarantee insurance to protect their income streams.
For landlords who already maintain good standards and have positive relationships with their tenants, the financial impact of the bill is likely to be minimal.
Preparing for the changes
Even though the bill has not passed into law yet, landlords can start getting ready now. Here are five things you can do:
- Get to know which requirements that could be coming your way
Speak to a letting agent or consider joining a landlord association: These organisations can provide valuable guidance, updates and resources to help navigate the changes. - Review your rental portfolio
Consider your long-term plans for each property and how the new possession grounds might affect these plans. - Update your tenancy agreements
Start reviewing your current agreements and consider which changes will be needed once the bill becomes law. - Optimise your record-keeping, where needed
Good documentation will be important for evidencing grounds for possession – make sure you have maintenance records, communications with tenants, and details of property inspections to hand, in case you need them in future. - Review your insurance
Ensure all insurance arrangements are compatible with the upcoming changes. This includes buildings insurance, contents insurance for furnished properties, and rent guarantee insurance. Pay particular attention to any policies with clauses that have restrictions, such as letting to tenants with pets, children or receiving benefits, as these may need to be updated.
It’s also important to note that the bill will not be imposed without warning. The government has committed to allowing sufficient notice and providing guidance, to ensure the transition happens as smoothly as possible for both landlords, and letting agents.
