The Renters’ Rights Bill is possibly the most significant reform the private rented sector (PRS) has seen since the Housing Act 1988.
Its primary goal is to give tenants more security to stay in their homes and more freedom to leave substandard properties by scrapping section 21 ‘no fault’ evictions and introducing more fairness to the system. The Bill is expected to come into effect between October 2025 and January 2026.
The bill will:
- Abolish fixed-term assured shorthold tenancies (ASTs) – as a result of this, all tenancies will become periodic. In other words, a three-year tenancy signed this year would instantly become periodic if the Renters’ Rights Bill became effective in October as planned, replacing the fixed term.
- Limit rent increases – the shift to periodic tenancies means Section 13 notices will be the only way for landlords to raise the rent; these can only be served once per year
- Abolish Section 21 evictions – landlords will no longer be able to serve “no-fault” notices to regain possession of their properties
- Expand Section 8 possession grounds – the Government is adding and updating both mandatory and discretionary grounds due to the abolition of Section 21
- Ban rental bidding wars – landlords and agents can’t accept offers above the advertised price
- Introduce a landlord ombudsman – this will help resolve disputes between landlords and tenants impartially
- Create a private rented sector database – designed to compile information about landlords and properties and provide visibility on compliance
- Apply the Decent Homes Standard – all rental properties must meet minimum quality standards, Awaab’s Law has already been introduced into the social housing sector as part of the Social Housing (Regulation) Act and will expand into the PRS as part of the Renters’ Rights Bill. It means landlords must follow strict timescales to inspect and repair hazards, such as damp and mould. The Government has claimed that the introduction of this law will “ensure that all renters in England are empowered to challenge dangerous conditions”.
- Prohibit discrimination – landlords can’t refuse tenants on benefits or with children
- Allow renting with pets – landlords can’t unreasonably refuse tenants with pets, but can require them to take out insurance to cover potential damages
While the Government is keen to implement big-ticket items as soon as possible — including the abolition of Section 21 and the shift to periodic tenancies — other parts of the Bill may be staggered.