Renters’ Rights Bill – Update

Posted on Wednesday, 2 July, 2025

Here’s the latest on the Renters’ Rights Bill, a landmark reform making its way through the UK Parliament to overhaul the private rental sector in England:

What’s in the Bill?

1. Abolition of “no-fault” evictions (Section 21)

Landlords will no longer be able to evict tenants without a valid reason. Instead, they must use Section 8 with specific grounds—such as rent arrears, sale, or needing the property back—with notice periods now typically four months for sale or landlord’s use (gov.uk).

2. Shift to open-ended (periodic) tenancies

All fixed‑term assured shorthold tenancies (ASTs) will convert to periodic agreements. Tenants must give two months’ notice; landlords must rely on lawful grounds (your-move.co.uk).

3. One annual rent increase via Section 13, aligned to market rates

Rent hikes limited to once per year with two months’ notice. Tenants can challenge increases at the First-tier Tribunal, which cannot raise the rent above the landlord’s request (gov.uk).

4. Ban on excessive upfront payments

Landlords can request only one month’s rent in advance—no more. This limits financial barriers but may disadvantage applicants lacking guarantees (england.shelter.org.uk).

5. Ban on bidding wars

Landlords and agents cannot accept offers above the advertised rent, helping curb inflated prices (taylorwessing.com).

6. New protections: benefits, children, and pets

Discrimination against renters with children or on benefits is banned. Tenants have a right to request a pet; landlords must justify refusals and may only require pet insurance—not extra deposits (charlesrussellspeechlys.com).

7. Decent Homes Standard & Awaab’s Law

Private rentals must meet minimum safety and condition standards. Serious issues like mould must be addressed promptly, inspired by Awaab’s Law (taylorwessing.com).

8. New enforcement & support systems

A private rented sector database and mandatory membership of redress/ombudsman schemes will aid dispute resolution.
Civil penalties may reach £7,000–£40,000 for non-compliance, including unfair rent practices (charlesrussellspeechlys.com).
Rent Repayment Orders (RROs) extended: tenants can claim up to two years’ rent, and more parties are held accountable (en.wikipedia.org).

Where is the Bill now?

As of early July 2025, the Bill has passed the Commons and is progressing through the House of Lords. It’s expected to receive Royal Assent by mid‑July 2025, with most provisions coming into force between autumn 2025 and early 2026 (reedsrains.co.uk).
However, implementation delays—like the ban on no-fault evictions—may push changes into spring 2026 due to parliamentary scheduling (thesun.co.uk).

Implications & debates

For tenants:

Substantially stronger protection and stability.
Reduced up-front costs and improved access for many.
Ability to challenge unfair rent increases or conditions.

For landlords:

Increased regulatory burden with tougher compliance and possible fines.
Anxiety around losing flexibility, especially in student lets and short-term rentals (reddit.com, moneyweek.com).
Some may withdraw from the market, shrinking rental supply and potentially pushing up rents (moneyweek.com).

Legal system capacity:

The Law Society warns courts may be overwhelmed due to increased Section 8 disputes and lack of legal aid (reddit.com).

Equity challenges:

International students, self-employed individuals, and those without traditional guarantors may find it harder to secure tenancies due to the cap on advance payments (moneyweek.com).

Summary

The Renters’ Rights Bill marks a major shift in England’s private rental landscape—offering tenants more security, fairness, and protections while introducing significant responsibilities and constraints for landlords. Though intended to tackle homelessness, poor housing standards, and market unpredictability, critics warn it could reduce rental supply and overload the courts.

What to watch

Late July 2025: Likely Royal Assent.
Autumn 2025 – Spring 2026: Staged rollout of key provisions:
- Abolition of Section 21
- Periodic tenancies
- Rent increase protocols
- Enforcement and database systems

Further information on the bill can be found on the UK Parliment website;

https://bills.parliament.uk/bills/3764

Please note: This information is not legal advice, and should not be treated as such.

Should you wish to discuss the bill further or would like more information, please contact us on 01895 544 555 or email us at; lettings@lakinandco.com