The UK government is pressing ahead with major reforms to the private rental market through the upcoming Renters’ Rights Bill, expected to be one of the most significant changes in housing law for more than 30 years.
The Bill aims to strengthen tenants’ rights and rebalance the relationship between landlords and tenants. It will also introduce new compliance duties and procedural rules that all landlords and letting agents must understand and prepare for.
Below, you will find a summary of the anticipated key reforms and their implications.
Abolition of “No-Fault” Evictions (Section 21)
One of the most important reforms is the abolition of Section 21 notices, which currently allow landlords to evict tenants without providing any reason once a fixed term ends.
Under the new regime, landlords will only be able to seek possession under specified statutory grounds such as:
- Serious or repeated rent arrears;
- Breach of tenancy obligations;
- The landlord wishing to sell the property;
- The landlord or a close family member intending to occupy the property; or
- The property requiring substantial refurbishment.
This change is designed to give tenants greater security and stability in their homes, while ensuring landlords retain legitimate grounds for possession when genuinely needed.
End of Fixed-Term Tenancies
The Bill will abolish the concept of fixed-term Assured Shorthold Tenancies (ASTs). All new tenancies will instead be periodic (rolling) tenancies, typically running from month to month.
This means tenants will have the flexibility to end their tenancy with a two-month notice, while landlords can only regain possession using one of the statutory grounds.
For tenants, this reform enhances mobility and prevents being “locked in” to long contracts.
For landlords, it reduces predictability and may require greater attention to cash flow and tenancy management.
Restrictions on Rent Increases
The Renters’ Rights Bill will limit rent increases to once per year and require landlords to give at least two months’ notice of any proposed increase.
Tenants will be able to challenge excessive rent increases through the First-tier Tribunal, which may substitute a market-based rent if the increase is deemed unreasonable.
Pre-set rent escalation clauses and rent bidding (accepting offers above the advertised rent) will be prohibited.
Landlords will therefore need to adopt more transparent pricing policies and maintain evidence of local market rates to justify rent adjustments.
Reform of Upfront Payments and Deposits
The Bill is expected to restrict landlords from demanding rent or deposits before the tenancy agreement is signed.
In most cases, the maximum deposit will remain capped at five weeks’ rent (six weeks where annual rent exceeds £50,000).
The Bill also contemplates clearer regulation of additional deposits for pet ownership, allowing landlords to request a reasonable extra amount to cover potential damage, subject to an upper limit.
These measures aim to reduce financial barriers for tenants at the start of a tenancy and prevent unfair pre-payment practices.
Strengthened Housing Standards – “Decent Homes” and Awaab’s Law
The government intends to extend the Decent Homes Standard (previously applicable only to social housing) to the private rented sector.
This means all rented properties must be safe, warm, and free from serious hazards such as damp, mould, or structural disrepair.
The Bill also incorporates principles from Awaab’s Law, which requires landlords to address health and safety hazards within strict time limits after being notified.
Landlords will face stronger enforcement powers from local councils and could face penalties for failing to maintain satisfactory housing conditions.
New Landlord Database and Ombudsman Scheme
The Bill will establish a national landlord and property database and a Private Rented Sector Ombudsman.
- The database will require landlords to register their details and their rented properties. This is intended to improve transparency and help tenants verify whether a landlord is compliant.
- The Ombudsman scheme will provide tenants and landlords with a quicker, lower-cost alternative to the courts for resolving disputes such as repair issues or deposit disagreements.
Failure to register or cooperate with the Ombudsman could lead to enforcement action and fines.
Protection Against Discrimination
Landlords and letting agents will be prohibited from imposing blanket bans on tenants who receive benefits or have children.
This provision aims to tackle widespread “No DSS” or “No children” policies and ensure fairer access to rental housing.
Implications for Landlords
The Renters’ Rights Bill represents a significant shift in the balance of rights between landlords and tenants.
Landlords will face:
- Greater procedural hurdles for possession;
- Stricter rent controls and challenge mechanisms;
- Heightened repair and maintenance duties;
- Increased administrative burden through registration and compliance systems; and
- Potential financial pressure from delayed evictions or higher upkeep costs.
However, compliance with the new framework will also promote professionalism in the private rented sector and help maintain stable long-term tenancies.
Transitional Arrangements and Timeline
At the time of writing, the Bill will be back in the House of Lords for consideration of amendments on 14 October 2025 and it is expected to receive Royal Assent in late 2025, with most provisions coming into force during 2026 in phases.
Existing tenancies are likely to convert automatically into periodic tenancies after the commencement date, subject to transitional rules.
Section 21 notices issued before the effective date may still be valid for a limited period.
Landlords should therefore audit their current tenancy portfolio, update tenancy templates, and review rent review clauses, deposit terms, and maintenance procedures to ensure compliance once the Act comes into force.
Practical Advice for Clients
The advent of the Renters’ Rights Bill means that close attention should be paid to its changes by both tenants and landlords.
For Tenants
- Review your tenancy agreement carefully before signing.
- Keep written evidence of all communications with your landlord.
- Report disrepair or safety issues promptly and in writing.
- Do not pay rent or deposits before signing a written tenancy agreement.
- If you receive a rent increase notice, check whether it complies with the new rules and consider seeking advice if it seems excessive.
For Landlords
- Update tenancy agreements to comply with the new legal framework.
- Register your properties as required and familiarize yourself with the Ombudsman process.
- Keep clear maintenance records and respond promptly to repair requests.
- Seek professional legal advice before serving any eviction notice or raising rent.
Conclusion
The Renters’ Rights Bill marks a new era for the UK rental market. While the reforms are primarily designed to protect tenants, landlords who prepare early and act transparently will be best placed to adapt and continue operating successfully under the new regime.
With the Bill now in its final stages, our firm will continue to monitor its progress and provide updates once the final version of the legislation and its commencement timetable are confirmed.
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