The Renters’ Rights Bill: What Landlords and Tenants Need to Know for 2025 and Beyond

The Renters’ Rights Bill, currently making its way through Parliament, is set to become law in 2025. This piece of legislation will bring significant changes to the private rented sector, impacting both landlords and tenants. In this blog, we break down the key provisions of the Bill and highlight the areas landlords and tenants should be aware of in the coming year.

1. Tenancy Reform: The End of Section 21 Evictions

One of the most talked-about provisions of the Bill is the abolition of Section 21, also known as “no-fault evictions.” Currently, landlords can evict tenants without providing a reason, but this is set to change. The government estimates that around 11 million tenants will be protected from arbitrary eviction as a result.

Additionally, the Bill will abolish fixed-term Assured Shorthold Tenancies (ASTs). All current ASTs will become periodic tenancies, meaning tenants can stay in their homes until they decide to end the tenancy by providing two months’ notice. Landlords will only be able to end a tenancy for specific, legally defined reasons.

2. Grounds for Possession: New Rules for Landlords

The Bill introduces new grounds for possession, providing landlords with more clarity on when they can seek to regain possession of their property. For example, landlords will be able to evict tenants if they intend to sell the property or need it for personal use (for themselves or a family member). However, landlords will need to give four months’ notice and cannot use these grounds within the first 12 months of a tenancy.

Existing grounds, such as rent arrears, will also see changes. The rent arrears threshold will increase from two to three months, and the notice period for eviction will extend from two to four weeks.

3. Stamp Duty Land Tax (SDLT) Increases from April 2025

Alongside the Renters’ Rights Bill, another significant change is the increase in Stamp Duty Land Tax (SDLT) rates, effective from April 2025. Key changes include:

• Higher SDLT rates for second homes and investment properties.
• A reduction in the SDLT relief for first-time buyers, with the nil rate threshold falling from £425,000 to £300,000.

With property transactions typically taking 8-12 weeks to complete, those looking to benefit from current SDLT rates should act sooner rather than later.

4. Introducing the Decent Homes Standard to the Private Sector

A major aim of the Renters’ Rights Bill is to raise housing standards in the private rented sector. The Decent Homes Standard, currently applying only to social housing, will be extended to privately rented homes. Over 21% of privately rented homes are considered “non-decent,” with hazards like mould, dampness, and structural issues being common.

The Bill will require landlords to meet these minimum standards, with local councils given stronger enforcement powers. Non-compliant landlords could face fines of up to £7,000.

5. Tackling Rental Bidding Wars and Unfair Practices

Rental bidding wars have become a growing concern, particularly in high-demand areas. The Bill aims to address this by preventing landlords and agents from renting properties at prices higher than the advertised rent.

Additionally, the Bill bans discriminatory practices, such as blanket bans on families with children or tenants on housing benefits. Rent in advance, a practice that was often used to the detriment of tenants, will also be prohibited under the Tenant Fees Act (2019).

6. Rent Control: New Rules for In-Tenancy Rent Increases

Landlords will face new limitations on mid-tenancy rent increases. Under the Bill, rent can only be increased once per year. Landlords must also provide a rent increase notice in a prescribed form, giving tenants a two-month notice period. If tenants disagree with the increase, they can apply to the First-tier Tribunal for a determination.

7. Awaab’s Law Extended to the Private Sector

Named after the tragic case of Awaab Ishak, who died from exposure to mould in social housing, Awaab’s Law will now apply to the private rented sector. Landlords will be required to address housing hazards like dampness and mould within specified timeframes. Tenants will have the right to demand repairs, and landlords will have to act within a set period.

8. Creating a Private Rented Sector Database and Landlord Ombudsman

To improve transparency and accountability, the Bill introduces a Private Rented Sector Database and an independent Landlord Ombudsman. The Database will help local councils target enforcement efforts, while the Ombudsman will provide a free, impartial service for tenants to resolve disputes with landlords.

9. Enhanced Rent Repayment Orders (RROs)

The Bill strengthens Rent Repayment Orders (RROs), allowing tenants to claim rent for up to 24 months (up from 12 months) if landlords breach the law, such as by providing false information. The Bill also holds superior landlords and company directors accountable for RROs, making it harder for unscrupulous operators to evade responsibility.

10. The Impact: A Balanced Approach?

The Renters’ Rights Bill aims to improve tenant security while supporting responsible landlords. It creates clearer standards and rules, ensuring that tenants are protected from unfair treatment, while holding landlords accountable for maintaining safe, habitable homes.

However, some landlords have raised concerns about the increased regulatory burden, higher fees, and the potential impact on property management. To ensure compliance, landlords must review their property conditions, management practices, and operating models ahead of the Bill becoming law in 2025.

What Does This Mean for You?

Whether you’re a landlord or tenant, it’s crucial to stay informed and prepared for these changes. For landlords, understanding and adapting to these reforms will be key to remaining competitive and compliant. For tenants, these changes offer increased protection, improved living conditions, and greater transparency.

• https://www.gov.uk/government/news/landmark-reforms-to-give-greater-security-for-11-million-renters
• https://www.gov.uk/stamp-duty-land-tax/residential-property-rates

The Bowling and Co Residential team has expertise in both commercial and residential matters. We seek to obtain the best outcome possible for every client, no matter how big or small the issue may be.

If you would like any more information relating to this article please contact Umekalsoom Mahzar on 020 8221 8041 or at umekalsoom.mazhar@bowlinglaw.co.uk

This article is not intended to provide legal advice; it is intended to provide information of general interest about current legal issues.