The Renters’ Rights Bill: April 2025 update

The Renters’ Rights Bill had its First Reading on 11 September 2024, followed by a rapid Second Reading on 9 October, and is now through the commons, making its way to the House of Lords for the Lords’ Second Reading of the Bill on 4^th February 2025. The Bill is rumoured to become law by spring/summer 2025, however delays in the process timeline would suggest that this could be pushed back to late summer.

The transformative legislation is due to have a big impact on the rental landscape in the UK, and it has never been more important to choose an independent agency like Farrar & Co to support landlords through this time of change.

What is the latest information (April 2025)?

 The Renters’ Rights Bill continues to progress through Parliament and is currently in the House of Lords having completed the committee stage in early March. It is expected that the Bill will move to the report stage at the end of April, moving to royal assent in early Summer, with the expectation that new regulations will likely only be enforced around October time. Farrar & Co will continue to monitor the situation.

What are the objectives of the Renters’ Rights Bill?

• Improving Housing Standards: This would include the publication of a new Decent Homes Standard to be applied to the private rental sector
• Greater security of tenure for Tenants: The Bill aims to give tenants greater peace of mind by abolishing Section 21 evictions and allowing all tenants a minimum tenure of 12 months
• Eliminating Discriminatory Practices: The Bill aims to eradicate discrimination in the private rental sector, such as ‘no pets,’ ‘no children,’ and ‘no DSS.’
• Encouraging Transparency: A Landlord Ombudsman will be introduced which will address tenant complaints and provide solutions, with local councils enforcing legal obligations via a digital property portal
• Tenant Affordability: Landlords will no longer be able to accept offers or encourage bidding wars above the asking price. Rent increases will still be allowed once per year, but tenants will have the right to contest it via tribunal

What does the Renters’ Rights Bill mean for Landlords?

• The End of Section 21: Section 21 no-fault evictions, which permit landlords to evict tenants without a reason, will be replaced with Section 8 notices which can be served for prescribed grounds only, such as rent arrears, selling the property, or moving back into the property. This notice will switch from 2 months’ notice to 4 months’ notice for landlords.
• The End of Fixed Term Tenancies: All tenancies will become ‘periodic’ on a rolling basis with tenants able to give notice from the very start but allowing tenants a minimum tenure of 12 months.
• The End of Bidding Wars: Landlords and/or Agents will no longer be able to encourage or accept rents above the asking price.
• Rent Increases: In order to increase the rent once a year, a formal Section 13 notice will need to be served on tenants with evidence supporting the increase, with tenants able to contest it through the First Tier Tribunal.
• Tenant Suitability: Landlords will not be able to reject DSS tenants, or tenants with children or pets, but can request that tenants take out pet insurance.
• Private Renters’ Ombudsman: A new ombudsman service will be established to mediate disputes between landlords and tenants, aiming to reduce reliance on costly legal proceedings
• Rent in Advance: on 15^th January 2025, the Housing Minister added the prohibition of landlords and/or agents from asking for more than one month’s rent in advance, however, there has been much resistance to this addition so far.