Although its full implementation is still pending, the Bill will bring sweeping changes to the private rental sector. It will affect not only traditional landlords but developers, lease block investors, lenders, and commercial landlords with residential units above retail spaces. We anticipate it to become law by the end of 2025 or early 2026.
The most talked-about change is the end of “no-fault evictions.” Section 21 notices, which allow landlords to evict tenants without providing a reason, will be scrapped. Instead, landlords must cite a breach of tenancy or rely on statutory grounds for possession and prove the same in court if necessary. Whilst the goal is about fairness, the practicalities of the changes raise concerns around cost, time, and certainty for both parties.
Perhaps the most radical shift is that, once enacted, existing assured shorthold tenancies (ASTs) will convert into assured periodic tenancies, and it will no longer be possible to create fixed-term tenancies even if both landlord and tenant prefer one. This is intended to give renters more long-term stability, but the absence of a fixed term could make tenants feel less secure.
Another significant change is the restriction on pre-tenancy or lump sum rental payments. It’s common practice for landlords to take several months’ rent either in advance, or as a first payment when the tenancy starts, especially where tenants may lack a strong credit history or cannot provide a UK based guarantor. Under the new rules, landlords can only insist on payment of a single month’s rent, and only after the tenancy agreement is signed.
The rules around guarantors will also tighten. Their liability will be capped at six months’ rent and limited to rent only. Guarantors will not be liable for any arrears accrued after a tenant’s death. Landlords will also be restricted in requiring a guarantor at all—for instance, they will have to choose between a guarantor and a deposit, when its currently common to ask for both.
Rent increases during tenancies will be limited to the statutory process. If the landlord and tenant cannot agree a new rent, the matter can be referred to a tribunal. This brings scrutiny to rent reviews but may remove the flexibility that some parties found useful in previous agreements.
One provision widely welcomed is the ban on “bidding wars”, where landlords invite or accept offers above the advertised rent. Common in high-demand areas like London, this practice will be outlawed. The aim is to level the playing field and promote transparency in pricing.
The Bill also imposes stricter requirements on property standards, aligning private rental properties with the “decent homes” standards already expected in social housing. Local authorities will be empowered to issue fines or pursue criminal penalties against non-compliant landlords.
A new national database of private rented tenancies will also be introduced. Landlords or agents will be required to register, and failing to do so could limit their ability to secure possession orders, in addition to exposing them to penalties. Keeping this database accurate and up to date will become a vital compliance task for landlords and their agents.
Additionally, the Bill bans blanket letting policies that exclude tenants receiving benefits or those with children. “No DSS” and “no children” will be unlawful, reinforcing the principle of fair and equal access to housing.
There is also a new right for tenants to request to keep a pet. While not granting an automatic right to have pets, it obligates landlords to consider, and not unreasonably refuse, such requests.
The Bill’s success will largely depend on the capacity of the court system. The existing system is already stretched, under-resourced, and slow to adopt digital processes. A large amount of possession claims are currently handled under the “accelerated possession procedure”, which will no longer exist. Every case which is not settled will need to go through a standard possession process. This is expected to increase case backlogs, and landlords may face longer waits for possession orders or bailiff appointments, leaving both sides in limbo for months. Legal professionals will need to manage client expectations accordingly.
While the Renters Rights Bill promises better protection and fairness for tenants, the transition will not be without friction. The Bill represents a major commercial and legal shift in the landlord-tenant relationship and will require adaptation and investment, both in the practicalities of managing such tenancies, and the infrastructure to enforce the remoulded rights under them.
If you have any questions about the Renter’s Rights Bill, or any other landlord and tenant issues, please contact DMH Stallard by email or call +44(0)3333 580 231
