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What the Renters' Rights Bill Means for You (June 2025)

As it progresses through Parliament, we remain committed to providing updates on the forthcoming changes to remain compliant, in addition to updating our practices accordingly.

Legislative Progress

Introduced in September 2024, the Renters' Rights Bill has passed the House of Commons and is currently under detailed review in the House of Lords. The Committee Stage commenced on 22 April 2025, with the Third Reading anticipated in the coming weeks. Once both Houses agree on the final text, the Bill will receive Royal Assent, with implementation expected between October 2025 and January 2026  

Key Provisions

1. Abolition of Section 21 Evictions

The Bill proposes to eliminate "no-fault" evictions under Section 21. Landlords will need to rely on revised grounds under Section 8 for possession, such as rent arrears or breaches of tenancy agreements.

Dan’s Thoughts: While the removal of Section 21 represents a significant legal shift, recent data shows it may have minimal practical impact for most landlords. A recent survey found that only a small percentage of Section 21 notices are served for reasons not covered by the proposed new grounds for possession.

This means that in most cases, the reasons landlords seek possession—such as selling the property or dealing with serious breaches of tenancy—will still be allowed under the reformed system, just through a more transparent process.

2. Transition to Periodic Tenancies

Fixed-term assured shorthold tenancies (ASTs) will be abolished, making all tenancies periodic by default. This change allows tenants to provide notice at any time, offering them greater flexibility.

Dan’s Thoughts: While the proposed changes may increase flexibility for tenants, it's important to note that short-term tenancies remain uncommon. The majority of tenants are still seeking long-term stability, and as a result, we do not anticipate any negative impact on tenancy durations.

Currently, most agreements begin with a 12-month term, but to reassure landlords, the average tenancy length is nearly double that, reflecting tenants' preference for secure, longer-term housing.

3. Updated Notice Periods Lengths for Landlords

If a landlord intends to sell the property or move in, they must provide a four-month notice period, and such actions cannot occur within the first 12 months of the tenancy.

Dan’s Thoughts: Under the current Section 21 notice process, it’s already important for landlords to plan ahead to align with the required notice period. With the proposed reforms likely to introduce an extended notice period, this need for early pre-planning becomes even more essential.

If possession of a property may be required—whether for sale, personal use, or other legitimate reasons—we strongly recommend discussing your options with us well in advance. This ensures we can advise you on the best course of action and help you navigate the process smoothly, within the new legal framework.

4. Regulation of Rent Increases

Rent increases will remain limited to once per year and must reflect market rates. Landlords are required to provide at least two months' notice (previously one months notice) before implementing any rent amount change.

Dan’s Thoughts:  Rents can still be adjusted fairly, as long as any proposed increase is in line with current market conditions. As your managing agent, we regularly advise landlords on what constitutes a reasonable adjustment—particularly in the rare event a tenant chooses to refer the matter to a rent tribunal.

It’s important to note that rent tribunals already exist and are designed to ensure fairness for both landlords and tenants. In practice, they are very rarely used by tenants. When they are, landlords who have followed fair market guidance generally have nothing to be concerned about.

5. Ban on Rental Bidding Wars

To promote fairness, landlords must advertise a set rental price and cannot accept higher offers from prospective tenants.

Dan’s Thoughts: In today’s market, it remains common for landlords to receive multiple applications from prospective tenants, giving you the benefit of choice and the ability to select the most suitable tenant based on references and reliability.

However, it’s worth noting that while demand is healthy, the number of offers being made above the asking rent is currently low. Most tenants are aiming to secure fair market value rather than compete with inflated offers.

6. Mandatory Registration with Ombudsman and Property Portal

Landlords will be required to register with a new Private Rented Sector Ombudsman and a national property portal.

Dan’s Thoughts: While some details of the proposed changes are still being finalised, landlords using our fully managed service are likely to already meet these requirements—particularly through our existing memberships and compliance processes.

For those who may need additional support, we will be on hand to assist with getting everything in place quickly and efficiently, ensuring you remain compliant.

7. Rent Arrears

Whilst the process for gaining possession if the tenant falls into rent arrears isn't changing, the amount of arrears that the tenant needs to be in to start possession will increase from 2 to 3 months.

Dan’s Thoughts: Landlords have long been advised to accept tenants who can successfully pass full referencing checks. This approach not only helps ensure reliability but also allows landlords to access key protections—such as Rent Guarantee and Legal Protection policies.

In light of the proposed legislative changes, we’ve seen a notable increase in landlords choosing to take out this cover as an added layer of security. These policies provide peace of mind, offering protection against lost rent and legal costs, should any issues arise during a tenancy.

We strongly recommend considering this protection as part of your overall investment strategy (if you haven’t already). If you’d like more information please get in contact.

8. Enhanced Tenant Rights Regarding Pets

Tenants will have the right to request permission to keep a pet. Landlords can only refuse on reasonable grounds and may require tenants to obtain pet insurance to cover potential damages.

Dan’s Thoughts:  Indications suggest we may see the introduction of a new type of insurance policy, specifically designed to cover potential damage caused by pets. This would provide landlords with an additional layer of protection, while still supporting tenants’ rights to keep pets in rental homes. It’s expected that landlords will be able to request that tenants take out this insurance as a condition of approval.

Additionally, the legislation is likely to introduce clear timeframes for responding to tenant requests, including those relating to pets. Rest assured, we will work closely with you to ensure all requests are handled promptly and in line with the new requirements.

9. Anti-Discrimination Measures

The Bill prohibits discrimination against tenants based on their receipt of benefits or having children. Landlords must ensure their practices and advertisements comply with these.

Dan’s Thoughts: Landlords will still retain the right to assess tenants based on their ability to meet rental and other key requirements—ensuring you can make informed, responsible decisions about who rents your property.

At the same time, the changes aim to provide more tenants with a fair opportunity to access quality housing, helping to create a more inclusive and balanced rental market. With our support, you can feel confident that your property is matched with reliable tenants, while staying aligned with the evolving legal landscape.

10. Introduction of Awaab’s Law

Landlords will be obligated to address emergency hazards, such as mould, within 24 hours, extending to a broader range of issues by 2026.

Dan’s Thoughts: This change is not expected to have a significant impact on the landlords we represent. We work with responsible, proactive landlords who consistently instruct us to address maintenance issues and potential hazards as soon as they are reported.

The aim of this legislation is to raise housing standards across the board, particularly targeting cases where standards have fallen short.

 

Timeline at a Glance

  • June 2025: Bill undergoing final stages in the House of Lords.
  • Summer 2025: Expected Royal Assent.
  • October 2025 - January 2026: Anticipated implementation period for key provisions.

 

Dan’s Overview

While the upcoming changes under the Renters’ Rights Bill may seem extensive at first glance, the reality is that for most landlords, the impact will be minimal—especially when working with a trusted managing agent.

With our Fully Managed Service, combined with added protections such as Rent Guarantee, you can feel confident that your investment remains secure and your income protected. Our service is designed to adapt to legislative updates seamlessly, allowing you to continue enjoying the benefits of property investment without the added stress.

Naturally, with any change comes questions. If you'd like to understand how these updates apply to your property or what steps we're taking on your behalf, our experienced lettings team is here to help. Feel free to give us a call or send an email—we’re happy to talk it through with you.

 

04.06.25
Written by Dan Killeen Category: News
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