What is the Renters' Rights Bill?

If you're involved in the letting industry, you've likely heard of Labour's Renters' Rights Bill, which was brought in in response to the Conservatives' Renters (Reform) Bill. But what exactly is it, and what does it mean for letting agents?

This Bill represents the most significant overhaul of housing law in the past 30 years, impacting every aspect of the lettings industry. Key changes include abolishing Section 21 evictions, streamlining dispute resolution processes, and stricter enforcement of property standards.

The primary aim of the legislation is to create a more balanced rental market and empower tenants.

We understand the challenges this Bill may pose for our partner agents, and we're here to guide and support you through the changes the Bill will bring!

Latest Renters' Rights Bill update

15th May, 2025

The Committee stage of the Renters' Rights Bill has now concluded, meaning it will move on to the report stage. 

This means the Bill is getting closer to becoming law, once it has passed the report stage, it will move on to the third reading and then the final stages, where the amendments proposed by the House of Lords are considered back in the House of Commons.

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Our expert team are also here to support you through the upcoming changes. If you're worried about the Renters' Rights Bill, or you'd like to find out more information, please contact your Customer Development Manager, or call us on 0800 035 8258.

 

Industry insight

Commenting on the Renters' Rights Bill, Will Eastman, HomeLet's Head of Legal, said:

The Renters' Rights Bill, introduced in September 2024, is progressing steadily through Parliament. After completing its Committee Stage in the House of Lords in mid-May 2025, the Bill is now approaching the Report Stage. This will be followed by a 3rd reading in the House of Lords and consideration of any amends by the Commons, with Royal Assent being anticipated by June 2025. Full implementation is expected by October 2025.

The Bill proposes significant changes, including the abolition of Section 21 'no-fault' evictions, transitioning all tenancies to periodic agreements, and limiting rent increases to once per year. It also introduces a national landlord register, a Private Rented Sector Ombudsman, and prohibits discrimination against tenants with children or those receiving benefits. Additionally, the Bill aims to end rental bidding wars and enforce stricter property standards.

With the Bill's enactment imminent, letting agents should proactively assess their operational readiness. This includes reviewing tenancy agreement templates, updating compliance procedures, and ensuring supplier partnerships are equipped to support the forthcoming regulatory landscape. Aligning with trusted providers like HomeLet and Let Alliance can offer the necessary tools and expertise to navigate these changes effectively.

Renters' Rights Bill FAQs

  • What is the Renters' Rights Bill?

    The Renters' Rights Bill is a proposed legislation change which will bring major updates to the private rental sector and require letting agents and landlords to adapt to stricter regulations.

  • How will the abolition of Section 21 affect letting agents?

    The abolition means landlords won't be able to end tenancies without giving a specific reason. Agents will need to support landlords in using revised Section 8 processes, which outline specific legal grounds for possession, such as wanting to sell, move in, rent arrears or property damage.

    If any of your landlord customers are worried about the abolition of Section 21, our Rent Guarantee product can help protect their income.

  • When will the Renters' Rights Bill become law?
    The bill is currently progressing through Parliament and doesn't yet have a set date, however, it is expected to become law in Spring or Summer of 2025.
  • Will tenancy agreements change under the new rules?

    Yes, periodic tenancies are expected to become the default. This means tenants can leave with two months' notice, and landlords can only end tenancies using valid grounds under Section 8.

  • Can six or twelve months' rent still be taken up-front?

    No, this is a recent proposed amendment which will not allow for more than one month's rent to be paid in advance. This makes intelligent referencing that looks at tenants' actual affordability even more important.

  • How will the Bill impact existing tenancies? 

    On commencement of the Act, fixed terms will be abolished, regardless of where they are in their fixed term. New rules on ending the tenancy will apply as from the end of the rental period which exists when the Act commences.

  • What changes are there around rent arrears?

    The new changes to possession grounds will mean a tenant will need to be in three months of arrears before a notice can be served on mandatory grounds. The notice will then give a further four weeks before possession applications can be made to the Court. Any awarded, but unpaid, Housing Allowance of Universal Credit payments can't be counted in the arrears.

    If any of your landlord customers are worried about rent arrears and the cost of going to court, our Rent Guarantee product can help protect their income.

  • What if I have served notice under S8 or S21 already

    There are some transitional periods for instances in which notices under S8 or S21 have already been served or possession proceedings have already started, before commencement. Tenancies will remain assured shorthold tenancies for the purpose of concluding any proceedings already issued, and any notices which have been served shall remain valid until the expiry of their usual shelf life, or a maximum of three months from the date of commencement – whichever is sooner.

  • Will landlords have to allow pets on all tenancies?

    Not necessarily – a landlord will not be able to unreasonably say no to pets within specific timescales. If landlords do agree to pets, they will be able to require that tenants take out Pet Damage Insurance. Landlords will also be able to require reimbursement of the cost of insurance to protect against pet damage if they agree to allowing a pet in the property.

  • Are there any new regulations around dispute resolution?

    The Bill gives the power for it to be made a mandatory requirement of landlords to be a member of a recognised Landlord Redress Scheme.

The timeline of the Renters' Rights Bill

What happened when - a full timeline of how the Bill came to be, and its progress through Parliament

17th May, 2023

Initial Renters (Reform) Bill introduced in the House of Commons
by the Conservative government

13th June, 2024

Labour publish their 2024 manifesto, promising to scrap section 21 'no fault' evictions

11th September, 2024

The Renters’ Rights Bill was introduced in the House of Commons

9th October, 2024

The Bill had its second reading where some MPs expressed concerns about the reforms, while others called on the government to go further with their reforms

14th January, 2025

The Bill completed its passage through the House of Commons, where there were 440 votes for and 111 against

15th January, 2025

The Bill had its first reading in the House of Lords

4th February, 2025

The Bill had its second reading in the House of Lords, and will now move on to the committee stage

22nd April, 2025

The committee stage began, allowing Peers to examine the Bill and consider amendments.

15th May, 2025

The committee stage ended, meaning that the Bill will move on to the report stage soon

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