The Renters’ Rights Bill is expected to bring significant changes to the UK’s rental landscape. Aimed at strengthening tenant protections and promoting housing security, it includes measures such as abolition of Section 21 (“no-fault” evictions), stricter regulations on property standards, and criminalising discrimination against tenants with children, pets or on benefits.
What is the Renters’ Rights Bill?
The Renters’ Rights Bill is a comprehensive legislative package designed to improve the rental experience in the UK. It includes provisions to end unreasonable evictions and increase stability for tenants, improve housing standards, ban rent bidding, ensure fairer practices by letting agents, and create a more pet-friendly rental market.
What is the latest update?
As of 22 April 2025, the bill has passed the House of Commons and is under final scrutiny in the House of Lords. The bill is expected to take effect by late 2025, giving landlords, agents and tenants time to prepare for the new changes.
Impact on landlords & tenants
Landlords will now face stricter rules around tenant evictions, due to the removal of Section 21. They will now need to provide legitimate reasons under Section 8 to end a tenancy, increasing the need for thorough documentation and legal compliance. They may also need to accommodate pets more frequently, which could mean revising tenancy agreements more often and insurance policies.
Tenants, on the other hand, will gain greater housing stability, particularly through the abolition of Section 21, introduction of a lifetime deposit scheme, and gain flexibility when renting as all tenancies will now be periodic, where tenants only have to give 2 months’ notice before moving out of the property.
Impact on estate agents
Letting agents will have to familiarise themselves with the new regulations and ensure fair rental practices and clear communications to avoid potential penalties. They are also expected to face increased operational costs due to administrative efforts and compliance requirements from the bill. A reduced turnover may be expected due to longer tenancy durations.
Impact on the rental market
Abolition of Section 21
Section 21, often referred to as the “no-fault eviction” clause, allows landlords to evict tenants without providing a legitimate reason once the fixed term of a tenancy ends. The Renters’ Rights Bill will eliminate this clause, making it harder for landlords to remove tenants arbitrarily.
According to Shelter, the number of no-fault evictions hit a six-year high in Q1 2024, with over 8,000 households forced to leave their homes. This trend continued into the end of the year, where the Big Issue reported eviction numbers reaching record highs. Critics argued this clause had contributed to housing instability and homelessness. Many believe its removal could lead to a more stable and equitable rental market.
Pet Clause
At present, only 7% of rental listings are marked as pet-friendly, according to Battersea Dogs & Cats Home. This restricts housing access for pet owners and contributes to pet abandonment. The new bill will require landlords to consider reasonable pet ownership requests and only reject such requests with grounded justifications.
This initiative is hugely welcome by tenants. For landlords, this can potentially widen the tenant pool and reduce vacancy durations, improving return on investment.
Financial costs for letting agents
PayProp estimates the new bill could cost lettings agents nearly £400 million over the coming ten years, due to administration changes, compliance and lower tenant turnover. While these changes bring on many challenges, they encourage agents to modernise operations and seek new revenue streams.
What you should do if you’re a letting agent
Here are a few things you should do if you’re currently in the letting industry:
- Invest in compliance training and updated tenancy software
- Familiarise yourself with the new regulations for agents & landlords
- Educate landlords on their new responsibilities and how to prepare for challenges
- Explore affiliate partnerships to gain extra revenue
What you should do if you’re a landlord
Here are a few things you should do if you’re a landlord:
- Review tenancy agreements and prepare for Section 8 processes
- Consider property adjustments and insurance updates to make your property pet-friendly
- Stay informed on the bill’s rollout and seek legal guidance if needed
What you should do if you’re a tenant
Here are a few things you should do if you’re a tenant:
- Understand your new rights and responsibilities under the new bill
- Keep documentation of tenancy communications and requests
- If you have pets or plan to adopt, gather references and communicate with your landlord
The Renters’ Rights Bill represents a bold step forward, rebalancing power in the rental market between landlords and tenants. While it presents operational and financial challenges for landlords and agents, it also opens up new opportunities for long-term stability and tenant satisfaction and better well-being.
