Renters' Rights Bill: Updates, timelines, analysis, & impacts (agent guide)

Originally published: September 2024

The Renters’ Rights Bill is the most significant reform the private rented sector (PRS) has seen since the Housing Act 1988. First introduced to Parliament on September 11, 2024, the Bill has wide-ranging implications for landlords, tenants, and letting agents alike.

But you’ll arguably be impacted most by the changes. 

As the Bill is expected to become effective in a matter of months, letting agents need to know everything about what's in store so you can set your agency up for success. Because while there will be challenges, there are also lots of opportunities to take advantage of.

In this blog we’ll cover all of the key talking points, while signposting in-depth resources where you can learn more.

• What is the Renters' Rights Bill?
• Renters' Rights Bill vs Renters' Reform Bill: What's the difference?
• Renters' Rights Bill: Key changes explained
• At a glance: Further reforms proposed by the Renters' Rights Bill
• When will the Renters' Rights Bill become law?
• When will the Renters' Rights Bill come into effect?
• Renters' Rights Bill updates: What stage is the Bill currently at?

What is the Renters' Rights Bill?

The Renters’ Rights Bill is a piece of upcoming legislation designed to deliver “long overdue” reforms to the Private Rented Sector (PRS). Its primary goal is to give tenants more security to stay in their homes and more freedom to leave substandard properties. 

The Government believes this is necessary because: “While the majority of landlords provide a good service, the [PRS] currently provides the least affordable, poorest quality and most insecure housing of all tenures.”

The Bill will: 

• Abolish fixed-term assured shorthold tenancies (ASTs) - as a result of this, all tenancies will become periodic
• 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
• 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

Renters' Rights Bill vs Renters Reform Bill: What's the difference?

The Renters Reform Bill is the predecessor of the Renters’ Rights Bill, explaining why they both look similar. 

The former was conceived by the Conservative Government towards the end of their term, but was abandoned as a Labour victory at the ballot box became increasingly likely. It proposed to:

• Abolish Section 21, but not before reforming the court system to deal with the increased volume of Section 8 notices
• Introduce more robust Section 8 grounds for possession for landlords to account for the abolition of Section 21
• Apply the Decent Homes Standard to rental properties
• Limit rent increases to once per year
• Prohibit discrimination against families or benefit recipients
• Allow renting with pets to help improve tenants' mental health

The latter was proposed by the new Labour Government, building on the above by:

• Introducing a landlord ombudsman
• Banning rental bidding wars 
• Creating a private rented sector database
• Strengthening enforcement

The Renters’ Rights Bill will also introduce Section 21 without court reform and apply Awaab’s Law to the Decent Homes Standard. 

Learn more in our Renters’ Rights Bill vs Renters Reform Bill 👈 blog 

Renters' Rights Bill: Key changes explained

While we've touched on all the key changes proposed by the Renters’ Rights Bill, here are the ones that are set to have the biggest impact on letting agents.

What will happen to assured shorthold tenancies (ASTs)?

The Renters’ Rights Bill will convert all fixed-term assured shorthold tenancies (ASTs) to periodic tenancies overnight. Any fixed-term tenancies you sign now will be affected by this when the Bill becomes effective. 

In other words, a three-year tenancy signed in September 2025 would instantly become periodic if the Renters’ Rights Bill became effective in October, replacing the fixed term. 

Tenancy reform is one of the Government’s biggest priorities and they believe that this move will “empower tenants to challenge bad practice without fear of retaliatory eviction”. 

Despite this, lettings industry data from Goodlord revealed that tenants actually prefer fixed-term tenancies. For example, 58.5% of tenants prefer fixed-term, renewable tenancy agreements, while 29.7% prefer rolling, open-ended agreements. 

Learn how you can prepare your agency for these changes in our periodic tenancies 👈blog 

How will this impact rent increases?

In the current system, landlords can raise the rent in several ways, including rent review clauses, renewing fixed-term tenancies, and mutual written agreements during the tenancy. However, due to the abolition of fixed-term tenancies, Section 13 notices will be the only way to raise rent, which you can only serve once per year. 

Learn how to serve notices quickly and compliantly in our Section 13 👈 blog

Will Section 21 be abolished?

The abolition of Section 21 “no-fault” evictions is one of the Government’s flagship rental reforms. Although letting agents and landlords appreciate the convenience of Section 21 notices, the Government feels that tenants are getting a raw deal. 

“Uproot[ing] renters from their homes with little notice and minimal justification” is something they want to end as early as possible. 

Learn more about the implications of abolition and how you can prepare for the changes in our Section 21  👈  blog

What will happen to Section 8 notices?

When the Renters’ Rights Bill becomes effective, serving Section 8 notices will be the only way landlords can evict tenants. As a letting agent, you need to be be able to advise landlords on which mandatory and discretionary possession grounds they can cite to evict a tenant from their property. 

After all, citing incorrect possession grounds will result in the courts rejecting your application, further delaying the eviction process. 

Learn about the practical steps you can take to prepare your agency for these changes and how to serve notices correctly in our Section 8 👈 blog 

Goodlord's Managing Director of Insurance, Oli Sherlock, and leading property lawyer, David Smith, tackle your burning Renters' Rights Bill questions ☝️

At a glance: Further reforms proposed by the Renters' Rights Bill

There are a range of other reforms the Renters’ Rights Bill proposes that you should know about…

Rental bidding ban

Bidding over the rental asking price will no longer be allowed when the Bill becomes effective. While the Government clarifies that most landlords don’t encourage rental bidding wars, it aims to “crack down on the minority of unscrupulous landlords who make the most of the housing crisis by forcing tenants to bid for their properties.”

Awaab’s Law

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”.

Renting with pets

The Renters’ Rights Bill will make renting with pets much easier. Tenants will be able to request a pet both before and during a tenancy and landlords can't unreasonably refuse their request. However, landlords can request tenants to purchase pet damage insurance. 

Digital private rented sector database 

A new digital database will provide visibility on who landlords are and any historical banning orders they've received so tenants can make more informed choices.

Landlord ombudsman

The Bill introduces a new private rented sector ombudsman, offering a fair and impartial resolution service to settle disputes without the need for court involvement. 

Illegal for landlords to discriminate against tenants who receive benefits

The Bill will outlaw blanket bans on tenants with children or those on benefits, ensuring fair access to housing.

When will the Renters' Rights Bill become law?

The Renters' Rights Bill is currently on track to pass Royal Assent and become law before Parliament's summer recess in July. The Bill was initially expected to become law after Easter, but a delay to the committee stage (which we cover later) has pushed timelines back. 

When will the Renters' Rights Bill come into effect?

The commencement date of the Bill will be more than two months after it reaches Royal Assent and becomes law. Following the completion of the Lords committee stage in mid-May, it's expected to come into effect between October 2025 and January 2026. 

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. 

Renters' Rights Bill updates: What stage is the Bill currently at?

The Bill is edging closer to Royal Assent. The Lords completed the committee stage on May 15, 2025 and the Bill will now enter the report stage. This will be followed quickly by the third reading. Finally, the Bill will be passed back to the Commons to consider any proposed amendments.

The committee stage typically happens around two weeks after the second reading, which was on February 4. However the Government announced that sessions would take place from late-April until mid-May, delaying implementation slightly.

The Bill completed the Commons stage on January 14, 2025 and entered Lords on January 15.

House of Lords report stage (upcoming): Everything you need to know

In the report stage, Peers will further scrutinise the Bill, while also having a chance to make additional amendments. It typically starts around two weeks after the committee stage, lasting a few days, and will be quickly followed by the third reading.

We'll keep this section updated with date announcements and key takeaways. 

House of Lords committee stage (complete): Everything you need to know

Here's everything you need to know about the committee stage in the Lords👇

What is the committee stage? 

The Parliament website says: "Committee stage involves detailed line by line examination of the separate parts (clauses and schedules) of a bill. Starting from the front of the bill, members work through to the end."

It continues:

"Before committee stage begins, amendments (changes) are gathered together and placed in order, then published in the ‘marshalled list'. Updated lists are produced before the start of each day of committee stage.

"During committee stage every clause of the bill has to be agreed to and votes on any amendments can take place. All suggested amendments have to be considered, if a member wishes, and members can discuss an issue for as long as they want.

"If the bill has been amended it is reprinted with all the agreed amendments."

When did the committee stage of the Renters' Rights Bill happen?

The Lords held committee sessions on:

• April 22, 24, and 28
• May 6, 12, 14, and 15

The Government initially announced six sessions but added another on May 15 to complete the stage.

7 key takeaways from the House of Lords committee stage

During the committee stage, Peers suggested hundreds of amendments, including to some of the Government's flagship rental reforms. These include:

• The abolition of Section 21
• The shift towards periodic tenancies
• The ability to appeal Section 13 rent increases

Renting with pets, guarantors, and RoPA were also discussed. Here are some of the key takeaways from the sessions…

1 - All 339 amendments rejected

As expected, the Government declined all of the amendments proposed by Opposition and Backbench peers during the Lords committee stage. So far, it has only passed its own amendments, which it proposed at the third reading in the House of Commons (see dedicated section below).

2 - RoPA is back on the agenda, but won’t be included in the Bill

Lord Best used the committee stage once again to emphasise the importance of the Regulation of Property Agents (RoPA). He said:

"The Renters’ Rights Bill presents an important opportunity to take a first step towards creating a proper regulatory framework for the property agency sector."

Government response

Despite earning the support of several Peers during the committee stage, RoPA won’t be part of the Renters’ Rights Bill. However, the Government has committed to revisiting the regulation at a later date.

3 - Government rejects calls to limit widespread use of guarantors

While the Government has included anti-discrimination laws in the Renters’ Rights Bill, some Peers feel they don’t go far enough.

For example, Baroness Lister proposed limiting the circumstances in which landlords can ask for guarantors, providing data on how their use disproportionately disadvantages low-income renters. She said:

“Over the last five years, 550,000 private renters were unable to rent a home that they wanted because they did not have a guarantor that met the landlord’s requirements.”

She continued:

“Some 45% of benefit recipients and 43% of families struggle to provide a guarantor, compared with just 24% of those not receiving benefits or without children.”

Government response

The Government rejected the amendment. Many still believe that requesting a guarantor remains vital for managing landlord risk.

4 - Peers sought to clarify key issues around renting with pets

Despite the Government proposing measures to make renting with pets easier, Peers sought clarity on several key issues, suggesting multiple amendments. For example, Lord Black argued that without firmer protections:

“Families with pets will remain in an ongoing state of housing insecurity, with the threat of eviction always looming around the corner.”

Because of this, he proposed that landlords shouldn’t be able to withdraw consent to keep a pet, once it has been granted.

Government response

In response, Housing Minister Baroness Taylor of Stevenage, said: 

“When a landlord gives permission for a tenant to have a pet, that consent is binding and cannot be revoked, with the exception of the very rare occasion when that becomes an anti-social behaviour issue.”

5 - No significant court reform planned before abolishing Section 21

The Shadow Housing Minister, Baroness Scott of Bybrook, touched on a widespread concern in one of her amendments. Many in the private rented sector believe that the court system needs significant investment; otherwise, it will be unable to process the increased volume of Section 8 notices effectively. She said:

"This amendment would require the Lord Chancellor to assess the operation of the possession process to ensure the court service has the capacity to deal with the increased demand expected because of this Bill."

Government response

The Government rejected this amendment, emphasising its commitment to court digitisation to improve efficiency. 

6 - No extension of Ground 4A to smaller student properties

Lord Willetts suggested that the Government should extend Ground 4A to smaller properties, proposing that: 

"Smaller rented accommodations of one or two bedrooms should also be exempt from the general provisions of the Bill and instead be recognised as academic accommodation."

This said, he didn't press his amendment to a vote.

Government response

The Government maintained its position on periodic tenancies, and rejected extending Ground 4A to smaller student properties.

The Government previously added Ground 4A to the Bill to enable the landlords of houses in multiple occupation (HMOs), exclusively let by students, to make annual agreements in line with the academic year.

Housing Minister Baroness Taylor of Stevenage said:

"We recognise that the student market has a cyclical business model and have therefore introduced Ground 4A, allowing landlords to evict full-time students from HMOs in order to house incoming groups in line with the academic year."

7 - Reviews of rent increase challenges before tribunal may be considered

Under the Renters' Rights Bill, tenants can dispute rent increases through the First-tier Property Tribunal if they disagree with them. There are also no plans to backdate rent increases if courts rule in favour of a landlord, which many believe will incentivise tenants to appeal. 

Addressing this concern, Baroness Wolf of Dulwich suggested that appeals should be reviewed before they’re sent to the tribunal. She said: 

"All appeals against rent increases should go in the first instance to the Valuation Office Agency and progress to the First-tier Tribunal only if there is a clear case to answer."

Government response

The Government praised Baroness Wolf's intentions while citing concerns about resource implications and potential delays. They also acknowledged that filtering out unfounded cases would help to alleviate pressure on the tribunal system. 

House of Lords second reading (complete): Everything you need to know

Peers debated the Government's proposals for the PRS in the second reading of The Renters' Rights Bill in the House of Lords on February 4.

The issue of student tenancies, supply and demand, pets in lets, and legal enforcement were key themes, with many questions remaining unaddressed. 

What is the second reading in the House of Lords?

According to the Parliament website:

"Second reading is the first opportunity for members of the Lords to debate the key principles and main purpose of a bill and to flag up any concerns or specific areas where they think amendments (changes) are needed."

It continues:

"The Government Minister, spokesperson or a member of the Lords responsible for the bill opens the second reading debate," which was, in this case, Baroness Taylor of Stevenage, Parliamentary Under-Secretary (Housing, Communities and Local Government), Labour.

"Any member can speak during second reading – this stage can indicate those members particularly interested in a bill, or a specific aspect of it, and those who are most likely to be involved in suggesting changes at later stages."

13 thought-provoking talking points from the second reading

1. Baroness Taylor said that "private purpose-built student accommodation will be removed from the Assured Tenancy System"
2. Other Peers suggested that any exemptions for student tenancies should extend to landlords renting one and two-bedroom flats to students
3. Conservative Peers criticised the Labour Government for rushing this legislation through without proper due diligence
4. Some Peers still feel landlords will be driven from the sector, further exacerbating issues with supply and demand, whereas others insist that these concerns are overblown
5. Concerns about the courts remain, despite reassurance from Baroness Taylor that the Government is working with the Ministry of Justice to ensure that it's prepared for the Bill's impact
6. As bidding laws will be outlawed, there are fears this will simply result in much higher asking rents
7. Although pets in lets were welcomed by many Peers because of their mental health benefits, the fact that there's no comprehensive pet damage insurance policy could leave landlords at risk
8. Many fear that local councils won't be able to enforce new rental rules due to underfunding, despite their new powers
9. A decrease of properties in the PRS may not necessarily be negative as long as the supply of social housing increases
10. Concerns were raised about the impact on small-scale landlords who may struggle to remove problem tenants without long legal delays
11. While the abolition of Section 21 is novel for the English market, it can learn lessons from Scotland's adaptation to a world without no-fault evictions 
12. Although the Decent Homes Standard is welcomed by many, there are concerns about how small landlords would afford the necessary improvements without passing costs onto tenants 
13. Self-employed and international renters are likely to suffer from the banning of up-front rent payments

House of Commons third reading (complete): Everything you need to know

The Government made several amendments in the third reading on Jan 14 including:

• Limit rent in advance - landlords will be banned from charging more than one month’s rent upfront
• Ombudsman fees - landlords will contribute to a national database, with fees directly funding the ombudsman
• PRS database clarifications - landlord and managing agent’s name, address, and contact details will be included as well as enforcement action taken out against them and previous eviction notices served to tenants
• Restrictions on advance rental agreements for students - students can no longer be locked into rental agreements more than six months in advance
• Protections for bereaved guarantors - guarantors will no longer be liable for rent payments following the death of a tenant

Despite pressure from Labour backbenchers and Green MPs, the Government once again rejected calls to introduce rent controls.

Will the Government accept any amendments proposed by the Lords?

Goodlord's Managing Director of Insurance, Oli Sherlock, and leading property lawyer, David Smith, explain why a wait-and-see approach to the Bill won't work ☝️

Many agents feel that, like its predecessor, the Renters' Rights Bill will either turn out to be a wild goose chase, or that significant amendments are imminent. This is highly unlikely. 

While Peers have another chance to propose amendments in the report stage, the Government is likely to continue rejecting any made by those from the Opposition or on the Backbenches. Amendments to the abolition of Section 21 and the shift towards periodic tenancies are particularly unlikely. This is because:

• Tenancy reform is one of Labour's key manifesto pledges - under the Salisbury Doctrine, the House of Lords will "not try to vote down at second or third reading, a Government Bill mentioned in an election manifesto"
• Labour has a large majority in the Commons - in the UK's bicameral system, the Commons is the elected chamber and the Lords is unelected, so its decisions will ultimately prevail

After the Lords passes the Bill back to the Commons, a process called "ping pong" could happen before it reaches Royal Assent. This refers to "the to and fro of amendments to Bills between the House of Commons and the House of Lords", when both Houses disagree on the content of a Bill.

While the Lords can use "ping pong" to delay a Bill, they can't ultimately stop it because of the Parliament Acts, which limit the powers of the House of Lords to reject legislation. 

Put simply, the final Renters' Rights Bill will closely resemble its original form in September 2024, when it takes effect.

Conclusion

If you need help to prepare for the Renters' Rights Bill, we've got you covered. Goodlord:

• Automatically updates contracts, ensuring you're ready for the switch to periodic tenancies
• Simplifies Section 13 notices, meaning you can serve and manage them at scale
• Provides Rent Protection & Legal Expenses Insurance, allowing you to protect your landlords from rent arrears and lengthy eviction processes

Hit the button below to speak to us today 👇

This article is intended as a guide only and does not constitute legal advice. Visit gov.uk for more information.