What does the Renters Rights Bill mean for Renters?

The Renters’ Rights Bill 2025 is a landmark piece of legislation set to transform the private rented sector in England. Aimed at providing tenants with greater security, fairness, and transparency, the bill introduces several key reforms that will significantly impact renters.

Renters Rights Bill

 What Is the Renters’ Rights Bill?

Introduced by the Labour government in September 2024, the Renters’ Rights Bill seeks to overhaul the current rental system, which has been largely unchanged since the Housing Act 1988. The bill is expected to receive Royal Assent in September 2025 and come into effect in early 2026. 

Its primary objectives are to:

• Abolish Section 21 "no-fault" evictions, providing tenants with greater stability.

• Replace fixed-term assured shorthold tenancies (ASTs) with periodic tenancies, allowing tenants more flexibility.

• Limit rent increases to once per year, with a mandatory two-month notice period.

• Introduce a new Private Rented Sector (PRS) database for greater transparency.

• Establish a PRS Ombudsman to handle tenant complaints and disputes.

• Prohibit discrimination against tenants with children or those receiving benefits.

• Ban rental bidding wars, ensuring fair access to housing.

• Implement a Decent Homes Standard, setting minimum property conditions.

How Will It Affect Renters?

The Renters’ Rights Bill introduces several significant changes that will directly impact tenants:

1. Enhanced Security of Tenure: With the abolition of Section 21 evictions, tenants will no longer face the threat of being asked to leave without reason. Landlords will only be able to evict tenants for specific, legally defined reasons, providing greater stability. 

2. Periodic Tenancies: All tenancies will become periodic, meaning they will automatically roll on from month to month. This change offers tenants more flexibility and removes the uncertainty associated with fixed-term contracts. 

3. Rent Increase Limitations: Landlords will be restricted to increasing rent only once per year, with a mandatory two-month notice period. Additionally, tenants will have the right to challenge excessive rent increases through a First-tier Tribunal. 

4. Improved Property Standards: The introduction of a Decent Homes Standard will ensure that rented properties meet minimum conditions for safety, comfort, and repair. Landlords failing to meet these standards may face penalties. 

5. Greater Transparency and Accountability: The establishment of a PRS database and an Ombudsman service will provide tenants with clearer information and a formal avenue to resolve disputes with landlords. 

6. Ban on Bidding Wars

   The practice of encouraging prospective tenants to bid against each other for rental properties will be outlawed. This ensures fairer access to housing and prevents renters from paying inflated prices due to competition, making the market more transparent and equitable.

   
   

   What Do Renters Need to Do?

   As the Renters’ Rights Bill is set to come into effect in early 2026, tenants should:

   
   

   • Stay Informed: Keep up to date with the latest developments regarding the bill and its implementation.

   • Review Tenancy Agreements: Understand the terms of your current tenancy and how the upcoming changes may affect you.

   • Maintain Communication with Landlords: Engage in open dialogue with your landlord about any concerns or questions regarding the new legislation.

   • Utilise Available Resources: Access resources provided by government agencies, tenant unions, and legal advisors to better understand your rights and responsibilities.

     
     

   By staying informed and proactive, renters can navigate the forthcoming changes with confidence and ensure their rights are upheld.

   
   

   Make sure to share this article with your friends and family who are renting, so they too can stay updated!