July 21, 2025

Renter's Right Bill 2025: What do landlords need to know?

The Renter’s Rights Bill is going through the final stages of approval and will enter law this year. It is the biggest shake-up of the rental sector in some time and aims to give renters greater protection.

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However, it’s not bad for landlords either – it’s just different. As a landlord, you need to know what’s changing and understand the law to let out your property legally. The full Act can be viewed on the government website, but we have gathered the most important changes here for reference.

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The end of Assured Shorthold Tenancies

The Assured Shorthold Tenancy (AST) has been the standard rental contract in the UK for many years. The Renter’s Rights Bill will abolish ASTs and replace them with and means:

Tenancies will now run month-to-month rather than for a set period of time. In effect, it makes the rolling contract the new norm rather than a contract that runs for a set amount of time (i.e. 12 months).
The contract can only be ended when the tenant gives two months’ notice or landlords reclaim the property in line with the criteria for regaining possession as laid out in the Bill.
These new tenancies will be known as Assured Periodic Tenancies.

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In reality, this won’t make much difference to landlords. The old-style ASTs automatically became rolling contracts once the initial period was up, so the practical effect is that you will have the same contract with tenants as before, except they will be rolling from day one.

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Finally, the tenancy will be protected for the first 12 months. Landlords won’t be able to regain possession or sell the property in this period unless it is to another landlord who will carry on the tenancy. Again, this is largely the same as the situation previously and will not affect the vast majority of landlords.

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Abolition of Section 21 ‘no fault’ evictions

One of the most important aspects of the Renter’s Rights Bill is the abolition of Section 21. Landlords were previously able to use it to regain possession of a property without having any reason for doing so.

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You will now have to give a reason for regaining possession. These include:

If you want to sell the property – Ground 1A – Mandatory – Four months’ notice
You or your family want to move into the property – Ground 1 – Mandatory – Four months’ notice
If you want to redevelop the property – Ground 6 – Four months’ notice
If the tenant has committed ‘serious anti-social behaviour’ – Ground 7a – Immediate
If the tenant is in serious arrears – Ground 8 – Four weeks’ notice
If the tenant is in arrears of any amount – Ground 10 – Four weeks’ notice

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The full range of conditions is included in the Bill, and landlords should take the time to understand them.

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Is the abolition of Section 21 bad for landlords?

It sounds like a negative for landlords, but in reality, the conditions for regaining possession of a property included in the Renter’s Rights Bill are extremely broad and cover every legitimate reason a landlord could need.

Section 21 had become notorious as a tool used by bad or ‘rogue’ landlords to punish tenants who asked for repairs, or who couldn’t afford an unreasonable rent rise. It was used to evict tens of thousands of people for no real reason, and so the government has been forced to act.

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Most landlords will have no problems without Section 21, and its abolition will not affect them in any practical way.

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Awaab’s Law and the Decent Homes Standard

The tragic death of Awaab Ishak highlighted that many landlords and housing providers are failing in their duty to provide properties which are fit for human habitation. The new Bill includes Awaab’s Law as a response to that failure.

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It will alter landlords’ duties in the following ways:

Landlords will have to address all emergency hazards and all damp and mould hazards within a set timeframe.
Emergency hazards include excess cold or heat, fire and electrical issues, hygiene issues, unlevel surfaces that can cause falls, structural collapse and explosions.
These hazards must be investigated and repair works carried out within 24 hours of being reported
If any potentially significant hazards are identified, the landlord must investigate within 10 days, report back within three days after that and undertake relevant safety work within five more days.
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That will put a greater burden on landlords to respond to emergencies with repairs. However, landlords should consider that a basic part of their duty with any investment and be able to avoid fines by acting promptly.

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Ban on ‘rental bidding’

‘Rental bidding’ is the practice of publishing a rental figure on a property listing, then telling tenants they need to offer more. The potential tenant who offers the most will secure the property.

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This practice was abused by bad and ‘rogue’ landlords, much like Section 21, to the point where the government has been forced to outlaw it entirely to protect renters. For the vast majority of landlords who set a rent and stick to it, nothing will change.

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You can still set your rent level at whatever you think is fair and will attract tenants, securing your income.

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No more large rental payments up front

Also outlawed is the practice of asking tenants to secure the property by paying multiple months of rent up front. This increased the financial risk for tenants to an unacceptable level in many cases and led to hardship. Due to this, landlords can no longer accept large sums up front.

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Improved rights for tenants to have pets

Pet-friendly rentals are getting rarer, but pets are the number one desire for many tenants. The new Bill gives tenants the right to keep a pet unless the landlord has a real reason to refuse. For example, if the building does not allow pets under the terms of the leasehold.

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However, there are measures being discussed to make sure that this doesn’t affect landlords negatively. The details are still being finalised, but renters will likely either have to prove they have pet insurance or landlords will be able to ask for a separate ‘pet deposit’ up front, which can be used in the event of any damage.

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What other measures are included in the Renter’s Rights Bill 2025?

There are many other measures in the Bill, such as:

Outlawing discrimination based on whether a potential tenant has children or is in receipt of benefits.
Creation of a Private Rented Sector database and a Landlords’ Ombudsman to deal with complaints.
Greater protections against ‘backdoor evictions’ where landlords raise rents unreasonably to try and force renters to leave.
Rent rises can only be done via a Section 13 notice. No other methods are allowed.

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We recommend that you read the full guide produced by the government to ensure you understand it all and know your responsibilities as a landlord.

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What’s the easiest way for landlords to keep on top of the Renter’s Rights Bill changes?

The best and easiest way for landlords to stay in line with the Renter’s Rights Bill is to use a professional lettings and management company to deal with their property. A management agent will be certified and regulated, so you can rest assured that they are up to date with requirements.

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They will also undertake all paperwork and administration needed to comply with the legislation, as well as arrange and perform repairs or maintenance work that needs doing on your behalf.

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Rental legislation can be complex, and it often changes. However, if you use a company like Northbank Residential to manage your investment, your workload won’t change. All you have to do is sit back and enjoy the monthly rental income from your investment.

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Want to know more about how we deal with legislation and paperwork for you? Contact our team today for more information!

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