The Renters Rights Bill 2025: A Guide for UK Landlords

The new Renters Rights Bill represents the most significant reform to the private rental sector in England for decades – replacing the old Renters (Reform) Bill introduced by the Conservative government.

As the bill makes its way through the House of Lords, landlords across the rental market need to understand how these changes will affect their rights, responsibilities, and the day-to-day management of their properties.

Our comprehensive guide breaks down the key components of the bill and what they mean for landlords.

What is the Renters Rights Bill & Why is It Being Introduced?

The government has introduced this bill to address longstanding issues in private renting, which currently provides housing for approximately 11 million private renters in England. While acknowledging that most of the 2.3 million landlords provide good service, the bill aims to tackle several significant problems including:

• Insecurity of tenure for tenants
• Substandard property conditions in some rental homes
• Risk of retaliatory evictions when tenants complain
• Lack of redress options for tenants

The government believes the Renters Rights Bill will create a more balanced rental market that works better for both tenants and landlords by removing the competitive advantage currently enjoyed by unscrupulous operators. The bill aims to deliver greater security for renters while maintaining landlords’ rights to manage their properties effectively.

Labour’s Renters Rights Bill – The Key Changes

1. Plan To Abolish Section 21 ‘No-Fault’ Evictions

Perhaps the most significant change in the bill is the plan to abolish Section 21 evictions, which currently allow landlords to conduct no-fault evictions without providing a specific reason. Section 21 evictions have long been controversial in the private rented sector.

What this means for landlords:

• You will no longer be able to use Section 21 notices, and all evictions will be grouped under Section 8.
• Evictions must follow Section 8 guidelines, which have been expanded and modified.
• The government has expanded and clarified these grounds to protect legitimate landlord interests, for example, when they need to sell the property or recover it for other valid reasons.

2. New Tenancy System

All Assured Shorthold  Tenancies (ASTs) will become periodic, effectively ending fixed term tenancies which exist under the current system. From the outset, tenancies will roll on from month to month, until either the landlord or tenant chooses to give notice.

What this means for landlords:

• All existing fixed term tenancies will convert to periodic tenancies when the bill becomes law.
• New tenancy agreements will automatically be periodic, without a fixed term a the beginning (which is usually the case now)
• Tenants can end tenancies with 2 months’ notice, at any point during the tenancy.
• This will be implemented as a one-stage process for private landlords (with social housing following later), without a transitional period for existing tenancies.

3. Reformed Possession Grounds

The bill expands and clarifies the grounds under which landlords can regain possession of their property in the absence of section 21 evictions.

Key repossession grounds available to landlords:

• When tenants are at fault (antisocial behaviour, property damage, rent arrears). For example, repossession proceedings can begin immediately when severe antisocial or criminal behaviour is afoot.
• When landlords need to sell the property or move into the property themselves.
• For property redevelopment and renovation purposes.
• For specific accommodation types, such as for student rentals, where repossession is mandatory for the new academic year and influx of students.

Important changes to repossession under the Renters Rights Bill:

• Tenants benefit from a new, 12-month ‘protected period’ at the start of their tenancies, during which landlords cannot evict to sell the property or move in themselves.
• Extended notice periods will be required by landlords when using grounds to sell the property or move in – this will require 4 months’ notice.
• The mandatory rent arrears threshold (before eviction proceedings can begin) is increasing from 2 to 3 months’ rent arrears.
• The notice period for rent arrears is increasing from 2 to 4 weeks.
• Landlords must be registered on the new Private Rented Sector Database to use certain possession grounds, once it is introduced.

4. Rent Increases Regulations

The Renters’ Rights Bill reforms how rent increases are managed, and introduces further guidelines for rent increase tribunals.

Rent increases can happen once per year in line with the market rate. To do this, landlords will have to use the Section 13 notice process while giving their tenants 2 month’s notice. Rent review clauses in tenancy agreements will also no longer be valid, or part of the process.

Equally, tenants can challenge rent increases at a First-tier Tribunal if they believe they exceed market rate. And these tribunals will have to follow strict guidelines, including:

• Tribunal will never set rent higher than what the landlord proposed.
• No backdating of rent increases from the time of the tribunal decision.
• Tribunal can defer rent increases by up to 2 months in cases of tenant hardship.

5. Private Rented Sector Ombudsman

All private landlords will be legally required to join the new Private Rented Sector Ombudsman scheme, which intends to mediate issues between landlords and tenants.

This is geared towards tenants, who will be able to use the platform to file complaints about their landlords, which the Ombudsman will have the power to investigate, and if necessary, take enforcement action.

What landlords need to know:

• Cost to landlords – Membership will likely require a small annual fee per property.
• Power to make binding decisions – The Private Rented Sector Ombudsman will investigate tenant complaints and make binding decisions. These powers include ordering landlords to issue apologies, provide information, take remedial action, or pay compensation.
• Joining is mandatory – Failure to sign up will result in penalties of up to £7,000 for initial breaches and up to £40,000 for repeated breaches. Tenants will be able to seek rent repayment orders against landlords who persistently fail to join.

6. Private Rented Sector Database

Landlords will be required to register themselves and their properties on a new database. This is different from the Ombudsman, and is primarily a way for local councils to access key information about landlords, and provide some of this information for tenants as well.

Registration will be mandatory and will incur a fee for landlords. Failure to register could result in penalties of up to £7,000 (or up to £40,000 for repeated breaches). Similarly, unregistered landlords will be unable to gain possession of their properties except in cases of tenant antisocial behaviour.

The aim overall is that, for landlords, the database will provide a ‘one-stop shop’ for lettings guidance. Tenants will also be able to see information, such as compliance certificates, pending actions against landlords, past penalties and more (though the exact level of visibility is still being decided).

7. Pet Ownership Rights

Tenants will have strengthened rights to keep pets in their rental properties by default – in most cases. Reasonable exceptions to this rule include health and safety concerns, such as the allergies of other tenants, or likewise, the property size being inappropriate to house the pet.

The Tenant Fees Act 2019 will be amended to allow landlords to charge fees relating to pet insurance, covering the extra costs which might be incurred.

What landlords should know:

• You must consider all pet requests on a case-by-case basis, not banning them by default.
• Any refusals must be reasonable and justified.
• You can require pet insurance to cover potential damage
• Tenants can challenge unreasonable refusals through the Ombudsman or courts
• Existing deposit protection and insurance can help cover any damage

8. Ban on Rental Discrimination

The bill will make it illegal to discriminate against prospective tenants based on either receipt of benefits or having children. These tenants can still be disallowed, but on the grounds of pure affordability, or in the case of tenants with children, on the grounds of property size or health and safety.

How this affects landlords:

• You cannot advertise properties with phrases like “No DSS” or “No children”.
• You cannot use indirect practices to exclude these groups.
• Terms in mortgages or lease agreements restricting letting to these groups will be unenforceable..
• Existing insurance contracts with such restrictions will be exempt until renewal.
• Penalties for discrimination can reach £7,000 per breach.

9. Prohibition of Rental Bidding

Landlords and letting agents will not be allowed to facilitate rental bidding of any kind. In other words, where a ballpark price is advertised for a property, and then tenants bid against one another to compete for the tenancy spot. Instead, landlords and agents must have a single, fixed price for any given property – and not allow offers over this fixed amount.

Civil penalties of up to £7,000 may be imposed for breaches of these rules, and multiple penalties can be issued for continued non-compliance.

10. Decent Homes Standard and Awaab’s Law

The bill introduces the Decent Homes Standard, and new safety requirements for the private rental sector. While many of these standards will already be met by rental properties, these standards will now be enforced explicitly (as they are in the social housing sector).

What landlords need to prepare for:

• The Decent Homes Standard will apply to private rentals for the first time.
• Requirements for the Decent Homes Standard will be set out in future regulations following consultation.
• ‘Awaab’s Law’ will require landlords to address hazards like damp and mould within specific timeframes.
• Failure to comply with the Decent Homes Standard could result in improvement notices, civil penalties, or criminal prosecution.
• Tenants will be able to challenge landlords through the courts or the new, landlord Ombudsman for unjustifiably disallowing pets.

11. Rent in Advance Restrictions

Landlords will be banned from demanding excessive rent in advance from tenants. After the bill passes, landlords can only request up to one month’s rent after the tenancy is signed – but before it begins – and cannot enforce any terms requiring early payment once the tenancy starts.

Local councils will also have the power to order repayment of any prohibited, advance payments and issue up to £5,000 as a civil penalty.

12. Enhanced Enforcement Powers

Across the board, local authorities will have stronger powers to enforce the new regulations. The aim is to ensure that everyone is following the rules and the new bill is introduced.

Key enforcement measures:

• Civil penalties of up to £7,000 for initial non-compliance (for example, allowing rental bidding, or not registering with the new Ombudsman.
• Civil penalties of up to £40,000 or criminal prosecution for serious or repeated non-compliance, such as providing fraudulent information for the Private Landlord Database.
• New investigatory powers for local councils, such as being to access more information about landlords and enter properties which are non-compliant.
• Expanded rent repayment orders that can now:
• Apply to superior landlords and company directors
• Cover new offences in the bill
• Require repeat offenders to pay the maximum amount
• Double the maximum repayment from 12 to 24 months’ rent
• Be applied within 24 months of an offence (extended from 12 months)

When will the Renters’ Rights Bill become law ?

Labour’s Renters Rights Bill  is due to become law at the back end of summer 2025 – but this is subject to change. The bill passes into law when it receives Royal Assent from the King, after it has passed through every stage of discussion in both houses of parliament. At the time of writing, there a three remaining stages for it to pass in the House of Lords before it can receive Assent.

Preparing Your Business for the new Renters Rights Bill

As a landlord, you should begin preparing for these changes by:

1. Staying informed about implementation dates and further guidance
2. Reviewing your tenancy agreements to understand how they will be affected
3. Planning for registration with the new database and Ombudsman scheme
4. Assessing your properties against likely Decent Homes Standard requirements
5. Reviewing your procedures for handling repair requests, especially regarding damp and mould
6. Familiarising yourself with the expanded possession grounds to understand your options if you need to regain possession

Feel you understand the new Renters Rights Bill?

While these reforms represent significant changes to private renting in England, they aim to create a more balanced rental market that works better for responsible landlords and tenants alike.

As the bill progresses through the House of Lords and eventually becomes law, understanding these changes now will help you prepare your business. By adapting early to the new rights and responsibilities for both tenants and landlords, you can ensure your rental business continues to thrive under the new regulatory framework.