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Renters Rights Bill set to reshape letting rules by July

The long-debated Renters’ Rights Bill is on course to become law by 22 July 2025, following confirmation that the House of Lords will hold its Report Stage and Third Reading on 1 July. With minimal disagreement expected between the Commons and Lords, landlords across England are now facing the most significant reform of the private rented sector (PRS) in decades.

From abolishing Section 21 evictions to replacing fixed-term tenancies with open-ended agreements, the legislation could permanently alter how landlords manage tenancies, raise rents, and maintain their properties. But many landlords are warning that the bill threatens to destabilise a sector already struggling with supply shortages, rising costs, and legislative overload.

Fixed-term tenancies scrapped, rent caps formalised
At the heart of the Bill is the abolition of Section 21, the so-called “no fault” eviction process that landlords have long relied on to regain possession. Once passed, all landlords will need to give a valid reason for ending a tenancy, such as persistent rent arrears or serious anti-social behaviour.

The government will also scrap fixed-term tenancies altogether, replacing them with periodic tenancies that tenants can end at any point with two months’ notice. While this flexibility has been welcomed by renters’ groups, landlord associations fear it removes crucial certainty and could trigger mid-tenancy voids — particularly in student housing, where annual lettings cycles are essential.

Rent increases will be limited to once per year, with landlords required to give at least two months’ notice and provide justification. Offers above the advertised rent — common in high-demand markets — will be outlawed entirely.

Ben Beadle, Chief Executive of the National Residential Landlords Association (NRLA), has criticised the pace and scope of the reforms, warning they could “cause landlords to quit the sector altogether if they feel the balance has tipped too far.” He added, “We support reforms that make the system fairer, but they must also work for responsible landlords who provide vital housing.”

Landlords face new obligations, watchdogs and red tape
In addition to tenancy changes, the bill introduces a raft of new compliance requirements. A Decent Homes Standard will apply to all privately rented homes — setting minimum quality benchmarks — and Awaab’s Law will compel landlords to fix health hazards such as damp or mould within defined time limits.

A new PRS Ombudsman will be set up to manage disputes outside the courts, and all landlords will have to register on a central database, a move many see as the precursor to more rigorous enforcement and local licensing.

Further clauses ban discrimination against tenants receiving benefits or with children, and tenants will have the right to request pet ownership, with landlords expected to justify any refusal.

“It’s regulation layered upon regulation,” said Nina Patel, a landlord in the Midlands with 12 properties across Leicester and Coventry. “Most of us are trying to provide good homes and run things properly, but now I need to pay for a database registration, follow tighter repairs deadlines, and lose the right to plan around fixed tenancies. I’ve already sold two properties, and I’m not the only one.”

Will the bill backfire on tenants?
While the Bill’s intention is to protect tenants, experts warn it may have unintended consequences. Zoopla data from May 2025 shows that average rents in England are already up 9.2% year-on-year, and multiple industry surveys suggest landlords are either reducing their portfolios or leaving the market entirely.

Timothy Douglas, Head of Policy at Propertymark, said: “We want a fair and functioning rental market, but it has to be commercially viable. If landlords are forced to accept lower flexibility, higher compliance costs, and less control, we’ll see supply shrink further — and tenants will be the ones left scrambling for homes.”

While both Labour and the Conservatives broadly support the Bill’s goals, its practical effects will depend heavily on the guidance issued after Royal Assent, as well as the level of support given to landlords adjusting to the changes.

 

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