Renters’ Rights Bill 2025: Everything Landlords Need to Know
There’s a big shift happening in the private rented sector, with sweeping changes to landlord and tenant law making their way through Parliament. The Renters’ Rights Bill is going to reshape the landscape for both landlords and tenants. It is likely to become law this summer with an early implementation date.
As a lettings agency with over 30 years of experience in Cambridge, we’re following the bill’s progress and are here to provide you with clear, accessible information on how these changes might affect you. But what exactly do these new laws mean, and how will they impact rental supply, demand, and pricing?
What is the Renters’ Rights Bill?
Introduced in the UK Parliament on 11 September 2024, the Renters’ Rights Bill proposes major reforms to the private rented sector in England. Its key measures include abolishing Section 21 “no-fault” evictions, phasing out fixed-term tenancies, and establishing a new tenancy system that offers stronger protections for tenants. The bill is expected to come into effect this spring.
Key Changes in Renters’ Rights Bill (RRB)
Ending Section 21 ‘No Fault’ Evictions
Under the current law, landlords can end a tenants tenancy without needing to provide a specific reason. The Renters’ Rights Bill will change this by abolishing Section 21. Instead, landlords will need to use an enhanced version of Section 8, which requires a legal reason for eviction, such as wanting to sell the property or moving in themselves. This shift ensures that tenants are better protected. Landlords will have stronger rights to regain possession of their properties in cases of non-payment or anti-social behaviour.
Assured Shorthold Tenancies Become Periodic
All Assured Shorthold Tenancies (ASTs) will transition into rolling, periodic tenancies from the date the bill is implemented and will include AST’s that are already in place. This means that tenancies will no longer have a fixed term such as six or twelve months, there will be a start date but no end date. Tenants will be able to give two months' notice to end the tenancy, and landlords must give four months' notice but not in the first twelve months of a new tenancy. The shift towards periodic tenancies means greater flexibility for tenants. We believe this may cause some difficulties when for example a family house becomes vacant at a time of year fewer families are looking to move.
A student tenancy which is an HMO is an exception: the tenancy cannot be signed more than six months before the start date. Rent in advance is restricted to one month. The Tenant can give two months notice and the landlord must give four months notice.
Our concern is if we are given notice early on in a tenancy, although almost all our tenancies are on a joint and several basis and it would mean all tenants giving notice., we could end up in a void when students are looking for a home. Another concern is knowing if students are gong to leave at the end of the academic year and how we shall minimise void periods. We are hoping a call from their Property Manager will illicit their plans and where appropriate early notice by the tenants.
Limits on Rent Increases
To bring more stability to the rental market, the bill introduces a cap on how often rent can be raised. Landlords will only be allowed to increase rent once a year, and any proposed increases must go through a formal process (Section 13). Rent rises will have to reflect local market rates, and tenants will have the right to challenge increases they feel are unfair by appealing to a tribunal. Additionally, the practice of ‘bidding wars,’ where tenants are encouraged to outbid each other, will be banned. This will have limited impact on our Landlords. We never have bidding wars, and we only ever suggest an annual rent increase . However, we shall have to continue to ensure any suggested rent increase can be justified.
A New Ombudsman Service
The Renters’ Rights Bill will establish the Landlord Redress Scheme, an ombudsman service that all landlords must join. This service will be available to tenants for free and is designed to resolve disputes without needing to go to court. The aim is to ease the burden on the court system and speed up dispute resolution, ensuring fairness for both parties.
Private Rental Portal and Landlord Database
A new private rental portal will require landlords to register their properties and their details. This will help local authorities enforce housing regulations and provide tenants with better access to information. Landlords will also receive guidance to stay compliant with the law. The registration will come with a fee, although the government assures it will be reasonable.
Pet Ownership Rights for Tenants
While landlords can still opt to refuse pets in marketing materials, tenants can no longer have a pet request unreasonably refused. If a landlord refuses, tenants can use the new ombudsman service or pursue a legal challenge. Additionally, landlords may require tenants to cover pet insurance. We will ask all landlords who wish to refuse pets to provide us with a written statement explaining why which we can then pass onto the tenant.
Outlawing Discrimination
The new rules will make it illegal to refuse to rent to people on benefits or families with children. However, landlords can still decline tenants if they are unable to afford the rent.
Ensuring Decent Homes
The Tenants’ Rights Bill also places a stronger emphasis on maintaining decent living conditions. The Decent Homes Standard will be applied to the private rented sector, and landlords could face penalties if they fail to meet these standards. Awaab’s Law, which was inspired by a tragic case of black mould in social housing, will be extended to the private rented sector, ensuring that properties are safe and well-maintained.
How Cambridge Property Lettings Can Support You
As a trusted lettings agent with deep knowledge of the industry, we’re here to guide you through these changes and help you understand how they will affect your property. We’ll continue to share updates and help you navigate any steps you need to take as the Renters’ bill of rights progresses through Parliament.
Whilst we have had a stunning record of collecting all rents for many years we do think these changes might be a reason for taking out Rent Guarantee Protection which covers loss of rent, and legal protection.
It is worth noting the Bill has not yet been finalised and changes may well be made.
If you have any questions or concerns, don’t hesitate to reach out to us. As experienced letting agents in Cambridge, we’re always available for one-on-one calls to discuss how these changes could impact your property, and we’re here to help you plan for what’s ahead.
