In mid-2023, we reported on the potential implementation of Renter’s Reform Bill. At that point in time, there were more questions than answers about what the Bill would look like and how it would be rolled out. 

The progression of the Renter’s Rights Bill through Parliament is gathering pace and is now on its way up to the House of Lords. We suspect that with the proposed changes, it could be passed as early as Summer 2025. 

Here’s what you need to know. 

A summary of the Renters (Reform) Bill 

The Renters (Reform) Bill was established to make renting fairer and more secure for tenants. It includes increased obligations for landlords and tightening of the laws around evictions. With multiple changes to existing laws, the Bill will have wide-reaching impacts on landlords throughout the country, and failure to comply will result in substantial fines. 

What does the Renters (Reform) Bill mean for landlords? 

As a property management company that lists scores of landlords amongst our clients, we understand all too well that time is money. With that in mind, here are the key points of the Renters (Reform) Bill and how those changes may affect you. 

End of Section 21 ‘No-Fault’ Evictions

One of the biggest changes is that landlords will no longer be able to evict tenants without a legally valid reason. While the grounds for eviction are set to be expanded, the core reasons include:

• Listing the property for sale
• Landlord or family members moving into the property
• Rent arrears
• Tenant misconduct

The concept behind these changes is that greater emphasis will be placed on landlords managing the tenant relationship responsibly. 

• Periodic Tenancies

Fixed-term tenancies will no longer be admissible. Instead, all new tenancies will be periodic (rolling month-to-month). Tenants will need to provide two month’s notice, so there will still be some level of stability, but the emphasis is on more flexibility in contracts for the tenant. Without guaranteed rental periods, landlords will need to navigate this uncertainty by being more careful with the tenants they place and establishing transparency and strong communication between both parties.  

• Restrictions on Rent Increases

Likely in response to the cost of living crisis, there will also be restrictions on rent increases, with the limit set at once per year. Should a tenant feel that the increase is unjustifiable, they will have the right to challenge it through a tribunal. While challenges are awaiting judgment, the effective date of the increase must be delayed.

• Ban on Rental Bidding

In a substantial change to existing policy, landlords will be prohibited from accepting any offer above the rental price that has been advertised. In doing so, bidding wars are prevented, and rental prices are set from the moment of advertising. 

• Pet-Friendly Tenancies

The Renters (Reform) Bill also states that all tenants will have the right to request permission to keep pets. While landlords aren’t mandated to grant this permission, they may only refuse if the circumstances are considered “reasonable”, for example, valid concerns about damage. 

• Discrimination Protections

Aligning the Renters (Reform) Bill with other discrimination legislation, landlords will face stricter rules intended to prevent discrimination. Factors such as having children or being on benefits will no longer be a reason to refuse consideration for tenancy.  

• Landlord Fees to Fund Ombudsman

Fees paid by landlords will finance the private rental sector Ombudsman, providing both renters and landlords with improved access to dispute resolution services.

• Home Adaptations for Disabled Tenants 

Although not finalised, the Government is considering giving disabled tenants the right to challenge a landlord’s refusal to make reasonable adaptations to the property (e.g., ramps, grab rails, motion-activated lighting).

• Private Rental Sector Database

The UK Government will now require all landlords to register to be part of a new landlord redress scheme, as well as provide information about themselves and their properties to a central database. Landlords must give their name, address and contact details, as well as contact details for their managing agent. Properties can’t be marketed until both the landlord and the property registration numbers have been published, as part of this scheme. Any enforcement action taken against the landlord or agent, as well as details of any eviction notices served, will also be collected. 

• Stronger Enforcement & Penalties

And finally, with the tightening of expectations on landlords comes a lower threshold for tolerance. Increased penalties will be applicable in cases of unlawful evictions or tenant harassment. Any landlords that do not comply with the new legal standards can expect to face a hefty fine. 

When will the Renters (Reform) Bill become law? 

The Renters’ Rights Bill 2024 successfully passed its final reading in the House of Commons on January 14, 2025. It is now under consideration in the House of Lords. If passed without amendments, it will need to be given Royal Assent and will then become law. Assuming a smooth process, uncontested by the majority government, it could become law as early as summer. 

Opportunities for Landlords 

There’s no denying that these changes will have impacts on landlords. However, they also create new opportunities. Those landlords who maintain their properties and have positive relationships with their tenants will likely enjoy low turnover and longer-term rental stability. While landlords with low quality properties and poor tenant management are most likely to be the worst affected. 

Would you like advice on how landlords can prepare for these changes or ensure compliance?  

We understand that these changes could mean challenging months ahead for landlords. But there’s no reason to go it alone. If you’re a private landlord with questions about how the Bill impacts you, that’s exactly what your agent is here for. If you’re a Readings client, your agent will be more than happy to arrange to talk you through any relevant changes to your contracts. If you’re not a Readings client and your agent hasn’t engaged with you regarding this important piece of legislation, we welcome you to contact us on 0116 2227575 or at lettings@readingspropertygroup.com.