The Renters' Rights Bill is likely to become effective in late 2025. It'll abolish Section 21 evictions & introduce a single system of periodic tenancies.
Updated May 1, 2025
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?
- Is the Renters' Rights Bill actually happening?
- When will the Renters' Rights Bill become law?
- What stage is the Bill currently at?
- Renters' Rights Bill: Key changes explained
- At a glance: Further reforms proposed by the Renters' Rights Bill
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?
| Renters Reform Bill | Renters' Rights Bill | |
| Abolish Section 21 | ✅ With court reform |
✅ Without court reform |
| Expand grounds for possession | ✅ | ✅ |
| Decent Homes Standard | ✅ | ✅ Plus Awaab's Law |
| Limit rent increases to once per year | ✅ | ✅ |
| Prohibit discrimination | ✅ | ✅ |
| Allow renting with pets | ✅ | ✅ |
| Introduce a landlord ombudsman | ❌ | ✅ |
| Ban rental bidding wars | ❌ | ✅ |
| Create a PRS database | ❌ | ✅ |
| Strengthen enforcement of non-compliance | ❌ | ✅ |
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
Is the Renters' Rights Bill actually happening?
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 turn out to be a wild goose chase. This couldn't be further from the truth.
The Bill is one of the recently elected Labour Government's manifesto commitments. The party also has a large majority in the House of Commons, meaning it can overpower any opposition from the House of Lords.
For both of these reasons, the Bill will pass with minimal amendments. In other words, it'll look very similar to when it was first proposed in September 2024, when it becomes effective.
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 commencement date of the Bill will be more than two months after this, meaning it's expected to become a working reality between October 2025-January 2026.
The Bill was initially expected to become law after Easter. However, a delay to the committee stage (which we cover in the next section) has pushed timelines back.
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 3rd reading of the Bill happened on January 14, 2025, marking the end of the Commons stage. The Bill then passed its first reading in the House of Lords on January 15 and the second reading happened on February 4.
The committee stage typically happens around two weeks after this, which takes up to eight days, although it can go on for longer. However the Government announced that committee sessions will happen on April 22, April 24, April 28, May 6, May 12, and May 14, meaning the implementation of the Bill will be slightly delayed.
Around two weeks after this, the Bill will enter the report stage, which will be followed quickly by the third reading.
Finally, the Bill will be passed back to the House of Commons to consider any proposed amendments.
Did the Government make any amendments during the 3rd reading in the House of Commons?
The Government made several amends in the 3rd 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.
What happened in the second reading in the House of Lords?
The purpose of the second reading in the Lords is to "debate the key principles and main purpose of a bill and to flag up any concerns or specific areas where they think amendments are needed". During the session, Peers focused heavily on issues like:
- Student tenancies
- Supply and demand
- Renting with pets
- Legal enforcement of the Bill
What's happening in the committee stage in the House of Lords?
This stage is currently ongoing. For regular updates, check out our dedicated committee stage 👈 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 landlord 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.
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.
