The Renters' Rights Bill - April 2025

We are delighted this week to have received expert insight from Theresa Wallace, FNAEA FARLA CRLM, Chair of The Lettings Industry Council, one of the most influential voices in the Private Rented Sector, championing higher standards and driving change across the industry – she has kindly offered to be a guest writer for this week and we are pleased to share her Blog below. 

Theresa Wallace - Chair of The Lettings Industry Council

The RRB represents the biggest change to the private rented sector in a generation and it is vital that all landlords understand the new legislation, plan for it, and comply with it.

The RRB only affects England as Scotland and Wales have their own housing law. It will impact all tenancies that are governed by the Housing Act –that means all Assured Shorthold Tenancies (ASTs), NOT company lets or high rents.

The aim of the Bill is to give greater security of tenure for tenants and also protection from unethical landlords and practices. This Bill sees the balance of power shifting from landlords to tenants and, as a result, some risks to landlords will be increased.

The law is not yet in place; this is my understanding based on the bill as it is currently written.

The Key Changes

Abolishment of Section 21 

• All possession will require a Section 8 notice, citing one or more grounds for possession.

• Landlords will no longer be able to evict tenants without reason.

• Evictions must now follow Section 8 grounds, such as breach of contract, sale of the property, or owner occupation.

• While this enhances tenant security, landlords still retain legal means to regain possession.

• Tenants will have a twelve month protected period from the date they move into the property. This means a landlord cannot serve notice to sell or move into the property until at least 8 months from the move in date so the notice cannot expire before the twelve month date. There is a restriction on remarketing for let for 12 months following the expiry of the notice.

Periodic Tenancies

• Fixed-term Assured Shorthold Tenancies (ASTs) will be abolished.

• All new and existing tenancies will be periodic from the date the industry has to comply with the bill.

• Tenants can leave with 2 months’ notice. Landlords must provide 4 months’ notice for possession (subject to grounds for eviction).

• A 12-month protection period prevents landlords from issuing a possession notice at the start of a tenancy.

Rental Increases & Advertising Restrictions

• Rent increases are capped at once per year via a process using a Section 13 notice. Tenants will have the right to challenge excessive rent increases at a Tribunal.

• Bidding wars will be banned – landlords cannot accept offers over the advertised rent.

• No rent in advance beyond one month can be requested.

• While these changes aim to create fairness, many fear they may result in higher initial rents and will disproportionately impact tenants that rely on alternative financial arrangements such as students, self-employed, retired and overseas renters.

Strengthened Tenant Protections 

• The act makes provision to prevent discrimination against tenants with children however the property would need to be suitable. A one bed flat would not be suitable for a family with say 3 older children and overcrowding would need to be considered. The bill also prevents discrimination against tenants on benefits.

Pets

• Properties can be advertised as no pets and tenants with pets refused but once the tenant is in place they can ask for a pet - this cannot be refused unreasonably.

• It would be reasonable to refuse if a superior landlord says no.

• Tenants can be asked to pay for pet insurance or any additional insurance cost to cover potential damages, if they say no then that is a reason to refuse permission for a pet.

Future Changes

The following won’t be ready to go live when the bill does, they will follow, probably next year (2026).

Landlord Ombudsman Service

• A new Landlord Ombudsman will provide dispute resolution between landlords and tenants.

Landlord Database 

• All landlords will be required to register on a Digital Property Portal before they can market a property to let. The database will track compliance and enforcement actions.

The Decent Homes Standard (DHS) 

• The DHS will apply to all rental properties, requiring a higher standard of maintenance and safety.

  
  

Awaab's Law 

• This law will set clear legal expectations about the timeframes within which landlords in the private rented sector must take action to make homes safe where they contain damp and or mould.

Strengthen local authority enforcement 

• Civil penalties will be expanded. A package of investigatory powers will be introduced bringing in a new requirement for local authorities to report on enforcement activity.

• Strengthen rent repayment orders by extending them to superior landlords, doubling the maximum penalty and ensuring repeat offenders have to repay the maximum amount.

Timings

• At the time of writing best guess’ on timings: Royal Assent by July with a compliant date by October – Dec 2025.

• If you have any Head or Superior Lease – or for that matter mortgage products - that insist on AST tenancies, those clauses will be ineffective.

While the changes may pose challenges for landlords, there are opportunities for those who remain in the sector, professionalise their business, and mitigate risks posed by the Renters' Rights Bill. Rewards include reduced competition, a wider choice of tenants, and stronger rental yields driven by high demand.

Theresa Wallace, FNAEA FARLA CRLM Chair – The Lettings Industry Council