The Renters’ Rights Bill 2025

Since a White Paper was launched in June 2022 by the previous government which pledged to ‘level up the quality of housing in all parts of the country so that everyone can live somewhere which is decent, safe and secure’, renters reform has been slowly gathering pace.

The current government’s Renters’ Rights Bill continues the scope of the Renters Reform Bill, but goes further in some areas pledging to ‘act where the previous government has failed’.

It has now had its second reading in Parliament and a call for evidence finished in November. With the new Bill expected to become law by Summer 2025, what are the key points to be aware of:

There will be an overhaul of tenancy structure with no fixed terms, abolishing shorthold tenancies.

Section 21 so called ‘no-fault’ terminations will be abolished and there will be significant reform of a landlords’ grounds for repossession.

There will be a ban on rent bidding wars for prospective tenants.

Landlords will need to sign up to a new mandatory database.

A new ombudsman for tenant disputes will be appointed.

There will be changes which require a Decent Homes Standard for all tenancies and new requirements for landlords to deal with issues such as mould and damp.

Landlords who are non-compliant will face action from tenants and local authorities who will have greater powers and new offences and penalties will apply.

Whilst there is much for landlords to consider within the new Bill, they also need to think about costs as the new Bill will ban rent review clauses in new and existing tenancies (except for low-cost tenancies of social housing by Registered Providers). All new and existing tenancies will automatically become rolling tenancies under the new legislation.

The only way a landlord will be able to increase the rent will be to rely on sections 13 and 14 of the Housing Act 1988 Act allowing them to serve two months’ notice on the tenant of a proposed increase and only one section 13 notice per year can be served.

Once this is served, the tenant may agree to the increase, both parties may agree an increase but at a level lower than the proposed figure in the notice or the tenant may challenge the proposed increase by applying to the First-tier Tribunal and they will decide an appropriate increase based on comparable market evidence. Tribunal costs will typically not be awarded to the successful party, so landlords will need to factor this in.

To gain possession of a property in the future the landlord will need to wait until the tenant issues a notice to quit with two months’ notice or satisfy one of the statutory grounds for possession for a termination process under section 8 (Schedule 2 – to be amended) of the 1988 Act.

Landlords who haven’t yet considered how these changes will affect their property portfolio should now, given the progress of the Bill. They may wish to make changes or dispose of properties that might be problematic to let in the future, without the need for significant investment. Those landlords that are intending to gain possession or take back their property would be wise to seek independent legal advice. There will be lots of trips and traps which could give rise to costly and protracted litigation if they do not get both the substantive and procedural steps correct.

Jonathan Haines can be contacted at j.haines@gullands.com