The Renters’ Rights Bill is set to bring sweeping changes to the UK’s private rental market, with significant implications for landlords, tenants—and the mortgage advisers who support them. As the Bill edges closer to becoming law, Birketts LLP’s Alice Harris, Legal Director, and Ellie Mullins, Solicitor in the Property Disputes Team, unpack the key reforms—from the end of fixed-term tenancies to tighter rent controls—and explore what they could mean for clients with buy-to-let portfolios.
The Renters’ Rights Bill (the Bill)has now progressed through the committee stage in the House of Lords and is expected to move to the Report Stage in early June 2025. With implementation expected between October 2025 and January 2026, this landmark legislation is set to reshape the landscape of the private rented sector. Now is the perfect time to examine the main transformative changes the Bill proposes.
1. End of fixed-term tenancies: a shift to flexibility
The Bill will abolish fixed-term tenancies, replacing them with open-ended Assured Periodic Tenancies (APTs). This means:
- there will be no more Assured Shorthold Tenancies (ASTs)
- tenancies will be on a month-to-month basis from commencement
- tenants can give two months’ notice at any time after the tenancy begins to terminate the tenancy
- a 12-month protected period will apply from the start of the tenancy, during which tenants cannot be evicted unless they breach the agreement.
2. Abolition of Section 21 ‘no-fault’ evictions
One of the most significant reforms is the removal of Section 21 notices, which currently allow landlords to evict tenants without providing a reason.
Under the new framework:
- landlords must use Section 8 notices, citing specific statutory grounds, to obtain possession
- this change aims to enhance tenant security while still allowing landlords to regain possession for legitimate reasons, such as selling the property or moving into the property themselves
3. Rent increases: a more regulated approach
The Bill will standardise how rent can be increased:
- contractual rent review clauses will be void and unenforceable
- rent can only be increased once per year via a Section 13 notice, with at least two advance months’ notice of the increase
- if the rent increase is challenged, the First-tier Tribunal will determine a fair market rent. Notably, backdating of rent increases is not permitted under the current draft of the Bill.
4. Advance rent payments: capped at one month
To prevent financial barriers to entry, landlords will be prohibited from requesting more than one month’s rent in advance before a tenancy begins. This will particularly benefit students and low-income renters who often face upfront payment demands.
5. Pets in rental properties: a new right for tenants
The Bill introduces a right for tenants to request a pet, and landlords:
- cannot unreasonably refuse such requests (unless restricted by a superior lease)
- may require tenants to obtain or pay for pet insurance, with the Tenant Fees Act 2019 being amended to accommodate this.
6. Ban on rental bidding wars
To promote fairness and transparency, the Bill will prohibit landlords and agents from accepting offers above the advertised rent. This aims to curb bidding wars and ensure equal access to housing.
7. Future reforms on the horizon
Beyond the immediate changes mentioned above, the Bill outlines several longer-term reforms:
- anti-discrimination measures: It will become illegal to refuse tenants based on having children or receiving benefits.
- Landlord Redress Scheme: All landlords must join an ombudsman scheme before advertising properties, ensuring a fair complaints process.
- Private Rented Sector Database: All landlords must register themselves and their property with the online database; to provide a ‘one stop shop’ for landlords and increase transparency for tenants.
- Awaab’s Law: This will extend the existing law to the private sector, requiring landlords to address issues like mould and damp within defined timeframes.
In summary, these reforms mark a historic shift in the balance of rights and responsibilities between landlords and tenants.
