The Renters’ Rights Bill 2025 represents the most significant reform of England’s private rented sector in almost forty years. It marks a decisive step in rebalancing the relationship between landlords and tenants, introducing sweeping changes that will permanently alter the legal landscape for both.
The End of Section 21 ‘No-Fault’ Evictions
At the heart of the new legislation lies the long-awaited abolition of Section 21, a mechanism that previously allowed landlords to remove tenants without giving a reason and with only two months’ notice. This provision has been widely criticised for creating insecurity and preventing tenants from challenging poor housing conditions for fear of losing their home.
Under the new regime, landlords will only be able to regain possession on specific statutory grounds, such as persistent rent arrears, anti-social behaviour, or a genuine intention to sell or occupy the property themselves. In practice, this means tenants will enjoy far greater stability and protection from arbitrary or retaliatory evictions.
For landlords, however, this will necessitate a more robust approach to tenancy management and clearer record-keeping, as the burden of evidencing valid grounds for possession will increase.
A Move to Periodic Tenancies
The Bill abolishes fixed-term assured shorthold tenancies (ASTs) in favour of periodic, or ‘rolling’, tenancies. Every tenancy will now continue indefinitely unless lawfully ended by either party. This reform aims to create a more flexible, balanced system in which tenants can give notice when they wish to move, but landlords can only do so when a legitimate statutory reason applies.
Regulating Rent Increases and Preventing Bidding Wars
Rent increases will also be more tightly controlled. Landlords may propose rent rises only once every 12 months, and must do so using the statutory Section 13 procedure, giving tenants a minimum of two months’ notice. Importantly, tenants will have the right to challenge proposed increases before the First-Tier Tribunal if they believe the rise is excessive or unjustified.
The Bill goes further by banning so-called “rental bidding wars”, making it unlawful for landlords or agents to accept offers above the advertised rent. This is intended to promote transparency and ensure fair access to housing, particularly in competitive markets.
Improving Property Standards and Tenant Safety
The Decent Homes Standard will now apply across the private rented sector, ensuring properties are free from serious hazards such as damp, mould, and structural disrepair. These obligations are reinforced by Awaab’s Law, which imposes strict time limits for landlords to rectify dangerous living conditions. Landlords who fail to meet these standards may face enforcement action and compensation claims.
New Systems for Dispute Resolution
To simplify the process of resolving issues, an independent Landlord Ombudsman will be established to handle complaints relating to repairs, rent increases, and management practices. Alongside this, a digital Private Rented Sector database will require all landlords to register their properties, improving accountability and transparency across the market.
Implementation and Preparation
It has been confirmed that this will become law this evening, but then the first wave of the implementation will be on 27th December.
Both landlords and letting agents should begin reviewing their tenancy agreements and internal procedures now. Existing contracts will need to be updated to align with the new periodic tenancy model and the removal of Section 21 provisions.
A Balanced Future
The Renters’ Rights Bill 2025 is the most substantial transformation of tenant law since the Housing Act 1988. It seeks to build a fairer, safer, and more transparent private rented sector, balancing the rights of tenants with the legitimate interests of responsible landlords.
For advice on Section 21 notices or no-fault evictions, contact our Litigation team at companycommercial@isonharrison.co.uk.
For guidance on drafting or updating tenancy agreements, contact our Commercial Property team at commprop@isonharrison.co.uk.
You can also reach us by phone on 0113 284 5000.
