The much anticipated and debated Renters’ Rights Bill is expected to become law within the next 6-9 months. We break down the details in this article to give you not only a concise overview of the new legislation and requirements, but also how we see the real impact of the bill on our clients.
Although the changes in the proposed bill look at first glance ominous for landlords and do tip the scales further in favour of tenants, we feel that in fact, not a great deal will change for our client landlords, given the real intentions of the bill and the markets in which our clients are operating.
We explain in this article, the nuance around each proposed change to legislation, and to what degree it might affect you as an owner of privately rented property in central London – we think you will be reassured!
The Renters’ Rights Bill – What Is It?
The Renters’ Rights Bill is the proposed legislation currently making its way through Parliament, which seeks to further balance the rights and responsibilities of landlords and tenants.
Originally introduced as the ‘Renters (Reform) Bill’ by the Conservative Party in 2023, since coming to power in 2024, the Labour Party have amended the proposed legislation and renamed it the ‘Renters’ Rights Bill’.
When is the Legislation Likely to Come into Force?
We currently have no precise date of implementation as there are still a few parliamentary stages for the bill to pass through. It is expected that the legislation will come into force between late 2025 and early 2026, although there is a possibility that it might even take longer than this.
What Are the Key Proposed Changes to the Current System of Private Renting?
Abolition of Section 21 Notices. A landlord can currently serve notice on a tenant for no reason using a section 21 notice (as long as a fixed term has ended). The bill rules this out and ensures that landlords have reasonable and defined grounds to evict a tenant.
Specific Grounds for Possession Set Out. Landlords will only be able to evict a tenant and recover their property under certain conditions. All mandatory and discretionary grounds can be found linked at the end of this article. There will need to be a clear and valid reason for the landlord to require possession of the property, with the abolition of section 21 notices.
All Tenancies Will Become Periodic – No Fixed Term Tenancies. Tenants will be able to give two months’ notice at any time throughout the contract, from day one. So, tenants can legally leave after only two months from the start date of the tenancy.
Rent Increase Regulation. Landlords will be able to increase rents once per year to the market rate. If tenants believe the proposed rent increase exceeds market rent, they can challenge this through tribunal. Rent review clauses will not be permitted going forward.
Existing Tenancies Will Convert Immediately. Once the bill is passed into law, all existing tenancies will convert to the new system, giving tenants the right to serve two months’ notice at any time, and removing the right of the landlord to serve Section 21 notices.
Banning of Rent in Advance. The Bill will end the practice of landlords requiring more than one month of rent in advance.
Introduction of Private Rented Sector Landlord Ombudsman. All landlords must register with the new ombudsman, regardless of whether they use a managing agent. Tenants will be able to use the service to make complaints about landlords, and the ombudsman will have the power to be able to compel landlords to take remedial action against any upheld complaint. It is expected that a small registration fee will be payable for each rental property registered.
Landlord Database. There will be a new landlord database introduced, requiring all landlords to register all properties. This will have benefits to landlords by way of keeping them informed about obligations and compliance and benefits to tenants by way of identifying issues past tenants may have had with landlords, informing their decision to rent. It is expected that a small registration fee will be payable for each rental property registered.
Banning Discrimination When Selecting Tenants. The Bill will introduce measures that prevent landlords refusing a tenancy based on certain characteristics, for example, tenants on benefits, with children or falling under protected characteristics.
No Rental Bidding. The Bill ends the practice of encouraging bidding wars on rental property. The mechanism for this is essentially that it will become illegal to accept offers above the set asking price of the property.
Renting With Pets Becomes Easier. The Bill seeks to ensure that a tenant with a pet is not unreasonably refused a tenancy. Tenants will have the right to take this to the ombudsman for a decision. Landlords will be allowed to require tenants to insure against damage caused by pets living in the property.
What is Our Assessment of the Practical Impact of These Changes For You?
Firstly, the reason that the bill was proposed in the first place was to give tenants more protection against landlords who act unscrupulously and unfairly. We do not work with any landlords who act in such a way, and the properties in our portfolio are relatively new, well built and well maintained.
One of the main causes for complaint by tenants who feel that they are not being treated fairly, is that properties are not maintained in a habitable condition as they should be by their landlords. Given the ever-present threat of a no-fault eviction through a section 21 notice, tenants are scared to complain, so many tenants are left living in unsuitable and badly maintained homes. No tenant of ours will be in such a position.
We break down the possible impact of each of the major legislative changes, in the context of the market in which you and we operate below.
Abolition of Section 21 Notices. We very rarely use section 21 notices as a mechanism to end a tenancy for any reason other than the tenancy has come to its natural end and the tenant has chosen to leave. The only exception to this is where a new rent cannot be agreed between landlord and tenant.
However, landlords are still protected by the legislation to increase rent once every 12 months, if it is in line with market value. Landlords often request above market value rent increases from tenants to evict them for other reasons, using a section 21 notice, but we have not seen this in our market. This is the main reason for the abolition of section 21 notices.
Potential Impact Rating: 0/10
Specific Grounds for Possession Set Out. As a landlord, you are still able to regain possession of your property if you want to sell it or want to move back in as your own residence. There are other more obscure and unusual grounds for possession, these are listed as an appendix to this article.
Potential Impact Rating: 0/10
All Tenancies will become periodic – no fixed term tenancies. Tenants will now be able to serve two months’ notice at any time, beginning day one of a tenancy. This measure gives tenants who are living in unsuitable conditions or not receiving the contracted level of service from their landlord, a mechanism to be able to leave a contract with no penalty. Again, we would not expect this to be an issue in our market.
It does, however, give all tenants an automatic break clause. Break clauses have been negotiated into leases and subject to agreement between landlord and tenant, up until now. Landlords can negotiate a break clause in order that the break doesn’t fall at a slower time of year for the market. Landlords will not now have this autonomy.
Realistically, nobody is going to want to move home and move again after a few months, unless there are exceptional circumstances such as job loss or bereavement. If a building site pops up next door, or a disruptive neighbour moves in for example, tenants will now have the flexibility to be able to move one with two months’ notice.
Tenants with break clauses in their contracts often, do not use them currently. They are just there as a backstop in case circumstances change, the only difference being now that they will have that right automatically from day 1.
We do not expect the impact of this to be significant, but no doubt there will be occasions where tenants take advantage of the new periodic tenancies and leave earlier than they otherwise would have done under the existing rules.
Potential Impact Rating: 3/10
Rent Increase Regulation. As referred to when discussing section 21 notices, the intention here is to prevent landlords asking for clearly unrealistic rent increases, often to try and encourage a tenant to leave the property. We do not see this practice.
What may have an impact is the fact that it will be easier for a tenant to refer a rent increase request to tribunal if they feel that is unfair or above market value. How straight forward, quick and utilised this process will be is unknown.
However, we would anticipate that this would be rare, as rent increases are always set at market values, and if we can prove and document the valuation to the tribunal, no fair market increase should be refused.
Potential Impact Rating: 2/10
Banning of Rent in Advance. We feel that this measure will significantly impact a specific cohort of tenants, rather than landlords. The intention of the measure is to make access to the private rented sector easier for people who cannot prove affordability, such as students, newly self-employed or no rental history in the UK.
It is likely though, that without the ability to take advanced rental payments to offset the risk of non-payment of rent in these circumstances, that landlords will just refuse the tenancy all-together. This will mean that it is in fact made harder for these tenants to rent a property, not easier.
Although the primary effects will be felt by the tenants, a secondary consequence for landlords may be that this measure reduces the size of the available pool of potential renters (as landlords may dismiss them), softening demand and putting downward pressure on rents.
Potential Impact Rating: 4/10
Introduction of Private Rented Sector Landlord Ombudsman & Landlord Database. We see this as nothing more than minor administration and what will likely be a small cost to register, but certainly something additional which is not required currently.
Potential Impact Rating: 2/10
Ban on Discrimination When Selecting Tenants. Although our landlords do not discriminate at all, in rare situations where landlords are expressing a preference on certain tenant characteristics, for example, tenants with children, they will not be able to do so going forward. Tenants who feel that they are being refused a tenancy based on certain characteristics will be able to make a complaint to the ombudsman.
Potential Impact Rating: 3/10
No Rental Bidding. No offers can be accepted above the asking price of the property once the legislation is passed. In hot market conditions this can happen. What will likely happen in those conditions will be that asking prices are just increased to allow for it. We do not think that this will have much impact on the levels of rent achieved.
Potential Impact Rating: 2/10
Renting With Pets Becomes Easier. You cannot now just refuse a tenant with a pet out of preference. There must be a valid and reasonable reason why the property cannot accept a pet. We think that it will be reasonable to state that apartments, particularly with no outdoor space, would be unsuitable for cats and dogs, if you are at all concerned about the suitability of your property for pets.
We have seen reasonable damage done to properties which have accepted pets in the past, which is more likely if the pet is left alone in the flat all day. For small, caged animals, it will be difficult to argue reasonably against, but these requests are rare in any case. It should also be noted though that we have also seen tenants with pets leave the property in better condition than some tenants without pets.
Tenants will have the right to appeal a decision not to accept a pet with the ombudsman.
Potential Impact Rating: 5/10
In Summary
Given the conditions and tenant base in the markets that we and our clients operate in, we do not see that the introduction of these changes is going to change things an awful lot. The main changes will be operational and documentation, but as your managing agent, Relier will take care of all of this at no extra cost to you.
We will keep you informed with updates between now and the new legislation being passed, but as ever, feel free to discuss this with us at any time.
More information can be found here including a full list of grounds for possession:
Overall Impact Rating: 2.3/10
Published 11/08/2025
Independent, experienced and trusted. We believe, and our clients tell us, that our personal service together with decades of experience in what we do, affords both our landlords and tenants a peace of mind and reassurance that their interests are taken care of in a transparent, honest and responsible way. We have a longstanding passion for property and take care of each unit within our portfolio, as if it were our own.
