The Renters’ Rights Bill is progressing through Parliament, with some elements currently expected to become law over the Summer.
The Bill will impact all Assured Shorthold Tenancies (ASTs), including both new and existing tenancies, but excludes company lets and tenancies with rents exceeding £100k pa.
So what changes will the new legalisation bring to the private rented sector?
When the Bill becomes law, all fixed-term assured shorthold tenancies (ASTs) will become periodic, rolling month by month with no end date. Any previously existing break clauses or options to renew will also no longer apply.
Tenants can stay in their homes until they decide to end their tenancy by giving 2 months’ notice in line with their rent payment date.
They have a 12-month period of protection from eviction from the start of their tenancy, when landlords are not permitted to sell or move back into the property.
Section 21 Notices are being abolished, meaning that landlords will no longer have a ‘no fault’ option to regain possession of their property.
New Section 8 Grounds will instead enable them to serve notice under different circumstances.
The following are expected to be the most commonly used Grounds:
The Grounds all have different notice periods, with landlords needing to give 4 months’ notice to sell or repossess. You can view full the full list of Grounds here.
Landlords will only be able to increase rents once per year to the market rate – the price that would be achieved if the property was newly advertised to let. To do this, they will need to serve a simple Section 13 notice, setting out the new rent and giving at least 2 months’ notice.
If a tenant believes the proposed rent increase exceeds market rate, they can challenge this at the First-tier Tribunal, who will determine what the market rent should be.
The Renters’ Rights Bill will prohibit landlords or letting agents from requiring or accepting any payment of rent in advance of the tenancy being entered into. A landlord will only be able to require up to one month’s rent (or 28 days’ rent for tenancies with rental periods of less than one month) once a tenancy agreement has been signed and before commencement.
The Renters’ Rights Bill will not allow landlords to unreasonably withhold consent when a tenant requests to have a pet in their home, with the tenant able to challenge unfair decisions.
Properties can still be advertised as ‘no pets’, however once a tenancy has started, landlords can only refuse pets under certain conditions, including head lease restrictions, severe allergies or refusal to pay for pet insurance.
Landlords will be able to require insurance covering pet damage, providing reassurance that any damage caused by a pet can be taken care of, and that the responsibility for preventing and resolving damage caused by a pet will fall to the tenant.
There will be a new Private Rented Sector Landlord Ombudsman Service, which all private landlords with assured or regulated tenancies will be required by law to join.
Tenants will be able to use the service for free to complain about a landlords’ actions or behaviours. The service will also benefit landlords by resolving tenant-initiated complaints in the quickest and most cost-effective way possible.
The Renters’ Rights Bill will address rental discrimination practices in the private rented sector. Landlords will no longer be able to refuse tenants because they receive benefits or have children – all tenants must be considered on a case-by-case basis.
Landlords and agents will however continue to have the final say on who they let their property to and can carry out referencing checks to make sure tenancies are sustainable for all parties.
You can read further details on the Renters’ Rights Bill 2025 here.
Liam Monaghan, Managing Director at LCP Private Office, comments:
‘Whilst there is understandably some nervousness surrounding the upcoming changes to the Private Rented Sector, the changes are not insurmountable. There is already a challenging system for unscrupulous tenants to take advantage of favourable rules and regulations. Should the Bill do what is promised, allowing landlords a quicker means to evict a tenant following the required notice period, all the better. It will, however, be even more important to choose tenants carefully, ensuring they pass strict checks on background and finances, as well as ensuring you have representation who can spot tenancies that are too good to be true.
LCP is here to support all our BTL landlords through this period of change. As always, if you have any queries or concerns, please reach out to me directly.’
