If you are renting, or a landlord who rents out properties, significant changes are on the horizon in England. The Renters’ Rights Bill, which passed its second reading in the House of Lords on 4th February 2025, is expected to become law later this year. This bill promises to bring changes for tenants, providing stronger rights to the eleven million renters across the country.

What is the Renters’ Rights Bill 2025?

The Renters’ Rights Bill aims to offer tenants more security, control, and freedom. Inevitably, landlords will also be affected, meaning all parties must familiarize themselves with the upcoming reforms.

Key Changes Under the Renters’ Rights Bill 2025:

Abolition of Section 21 – No More “No-Fault” Evictions

The most notable change is the abolition of Section 21 evictions, often referred to as “no-fault” evictions. Under the current system, if certain conditions are met, landlords can evict tenants without providing a reason, which critics have long commented leaves renters feeling insecure and vulnerable. With the new bill, it is argued that tenants will enjoy greater peace of mind.

End of Fixed-Term Assured Tenancies

The bill also introduces a shift from fixed term assured tenancies to making all tenancies periodic. This change gives tenants much more flexibility, as rental periods will now operate on a monthly or less than 28-day cycle and enabling tenants to end the tenancy by giving two months’ notice, making it easier for tenants to move, when necessary, without the burden of being locked into long-term contracts. On the other hand, it is likely to mean that landlords could be faced with additional costs of finding new tenants.

Grounds for Possession

The bill also expands grounds for possession. By abolishing “no-fault” evictions (Section 21) this shifts the focus to Section 8 grounds for possession. Landlords must now provide evidence that the ground for possession is met.

The grounds for eviction are categorised into mandatory and discretionary. For mandatory grounds, the court must award possession, if the ground is proven. For discretionary grounds, the court can consider if the eviction is reasonable even when the ground is met.

For instance, a mandatory ground for granting possession to a landlord would be if the landlord or a close family member intends to make the property their primary residence. On the other hand, a discretionary ground for possession would be if the landlord plans to demolish, rebuild, or redevelop the property.

The above reforms seek to balance the interests of both landlords and tenants by providing greater security and flexibility for tenants whilst ensuring landlords can still regain possession of their properties under reasonable circumstances.

Capped Advance Rent Payments and Restrictions on Rent Increases

• Advance Rent Payments: The issue of large upfront rent payments has long been a frustration for tenants. Under the new bill, advance rent payments will be capped, alleviating the financial pressure that often accompanies securing a rental property. Landlords can still request one month’s rent upfront, along with a security deposit (capped at six weeks’ rent).
• Capped Annual Rent Increases: With the introduction of this bill, landlords will only be permitted to raise rent once a year, and any increase must be reasonable. What will be deemed ‘reasonable’ may be a matter for dispute and it remains to be seen what impact this will have once in force.

The End of Bidding Wars and Housing Benefit Discrimination

• Bidding Wars: The Renters’ Rights Bill also puts an end to the practice of potential tenants having to bid higher than the advertised rent. This move ensures greater transparency and fairness in the rental process.
• Discrimination: Landlords will no longer be able to reject tenants solely because they are in receipt of housing benefits. However, landlords can still assess a tenant’s affordability before making a decision.

The Right to Keep Pets

One of the most popular aspects of the new bill is the implied right for tenants to request that their landlord allow them to keep pets. Landlords can no longer unreasonably deny pet requests unless they have a valid reason.

Summary

Tenants will benefit from greater protections, increased flexibility, and more control over their living situations. Landlords will need to be aware of and adapt to these new rules, which are intended to create a more balanced and predictable rental experience for all.

The Renters’ Rights Bill is set to reshape the landscape. For landlords and tenants alike, keeping informed about these changes is essential.

For more information, please head to the Government website: https://www.gov.uk/government/publications/guide-to-the-renters-rights-bill

Need Advice?

If you require advice on how the upcoming changes will affect you or need assistance navigating the new rules, contact McHale & Co. Our dispute resolution team is ready to offer a free, no-obligation consultation. Call us at 0161 928 3848 or visit our website at https://mchaleandco.co.uk/ for more information.