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    The Renters' Rights Bill: What It Really Means (An Update)

    16 days ago
    The Renters' Rights Bill: What It Really Means (An Update)

    Everything You Need to Know 

    The Renters' Rights Bill is set to transform the UK rental market, giving tenants more stability and rights while tightening obligations for landlords. If you're a landlord, tenant, or property professional, here’s a detailed breakdown of what to expect, when, and how it affects you.

    The Most Likely Timeline: When Will the Bill Become Law?

    • Royal Assent: Could be granted by late July 2025, just before Parliament’s summer recess (22 July). However, if the bill bounces back to the Commons for further amendments, approval may be delayed until September 2025.

    • Commencement (When the law starts to apply): The government promises at least six months' notice before major changes, including the Section 21 ban. So, expect implementation to begin October 2025 to January 2026.

    Key Milestones

    Date What Happens
    22 April – 15 May 2025 House of Lords Committee Stage (Completed)
    1, 7, 15 July 2025 Report Stage in the Lords (Completed)
    21 July 2025 3rd Reading in the House of Lords
    Late July – Sept 2025 Royal Assent
    Oct 2025 – Jan 2026 Section 21 ban and other changes take effect

    Note: The House of Lords cannot block the bill outright, especially as it aligns with Labour's manifesto and has strong political support.

    The End of Section 21: What It Really Means

    Section 21 allowed landlords to evict tenants with no reason, usually with two months’ notice. Under the new law:

    • All new tenancies must follow the new rules: no fixed terms, no Section 21.

    • Existing tenancies will convert to periodic ones by mid-to-late 2026.

    • Section 8 will become the only route for regaining possession.

    This marks a major shift in favour of tenant security. Evictions now require proper legal grounds.

    Understanding the New Eviction Process: Section 8 Grounds

    Without Section 21, landlords must rely on Section 8, which requires valid legal grounds. The bill expands both mandatory and discretionary grounds:

    Mandatory Grounds (If proven, the court must grant possession):

    • Selling the property (landlord must prove intent; re-letting ban reduced in some cases).

    • Landlord or close family moving in.

    • Repeated serious rent arrears (even if paid off).

    • Current rent arrears of two months or more.

    • Anti-social behaviour with a broader definition.

    Discretionary Grounds (Court decides based on evidence):

    • Persistent late payments.

    • Breach of tenancy terms.

    • Renovation or redevelopment needs.

    • Death of tenant without a successor.

    The courts will also receive digital upgrades, faster hearings, and fee caps to avoid system abuse.

    What Recent Amendments Have Changed

    During the House of Lords Report Stage (ended 15 July 2025), several amendments were adopted:

    • Pets: Landlords can charge up to three weeks' extra rent as a pet deposit, in addition to insurance.

    • Re-letting after sale: Re-letting bans were shortened in some cases.

    • Agricultural Workers: A new ground allows possession to house full-time farm staff.

    • Rent Appeals: If tenants challenge a rent hike and lose, the new rent still applies from the original notice date.

    Rejected proposals included redevelopment grounds and carer housing.

    Major Wins for Tenants

    Security of Tenure

    Tenants can stay indefinitely unless landlords prove a Section 8 ground. The six- or twelve-month term model is gone.

    Pet Protections

    Tenants can now request pets, and landlords must have reasonable grounds to refuse. Insurance may be required, and an additional deposit is permitted.

    Repairs and Property Standards

    The Decent Homes Standard now applies to all private rentals. Alongside Awaab’s Law, this ensures prompt fixes for:

    • Damp and mould

    • Heating issues

    • Safety risks

    Complaints will go to a free Private Renters’ Ombudsman, whose rulings are legally binding.

    Rent Increase Rules: Fairer and More Transparent

    • Landlords can only raise rent once per year, via a Section 13 notice, with one month’s warning.

    • Tenants can challenge increases at a tribunal, which will cap rent at market rates.

    • Bidding wars are banned – advertised rent must be the final rent.

    Tip for landlords: Keep market evidence to support any rent adjustments.

     
    What Landlords Need to Do Now

    Compliance Requirements

    • Register on the new Private Rented Sector Database (launching soon).

    • Ensure properties meet the Decent Homes Standard.

    • Use updated tenancy agreements reflecting periodic terms.

    • Prepare for potential tribunal costs when evicting under Section 8.

    Challenges

    • Court backlogs may delay evictions, although reforms aim to reduce delays.

    • New rules increase administrative responsibilities and possible costs.

    Opportunities

    • Focusing on long-term tenants offers stable income.

    • Well-maintained properties will attract quality renters.

     

    ❓ Quick FAQs

    When do changes apply to current tenancies?
    New tenancies from the commencement date (likely Oct 2025 – Jan 2026). Existing tenancies shift about a year later.

    Can I still use a company let?
    Yes, but only for genuine company tenancies. All other duties still apply.

    What happens with rent deposits?
    Portable deposits will allow smoother moves between rentals.

    Can I complete a Section 21 eviction already in progress?
    Yes, only if the court issues the order before the transition date.

    Do HMOs get special treatment?
    Yes, student lets will have a new Section 8 ground aligned with term dates.

    Can I still evict for personal reasons?
    Yes, if you can prove valid grounds (e.g. sale or family need).

    Am I losing control of my property?
    Not entirely. You can still choose tenants, set rents, and regain possession when justified – just not without cause.

     
    Final Thoughts

    The Renters' Rights Bill is a bold overhaul aimed at making renting fairer and more transparent. Tenants gain stronger protections and more stability, while landlords retain rights but must meet higher standards.

    Be prepared. Stay informed. And if you’re planning to exit the market, explore your options early.

    For more, visit the official Government guide: gov.uk/renters-rights-bill

    Need advice?
    Our expert lettings team is happy to help. Let's make sure you're ready.

    Contact us at 020 8487 9090

     

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