Renters’ Rights Bill Explained

Everything landlords need to know

What is the Renters’ rights bill

The Renters’ Rights Bill represents the most significant legislative reform to the private rented sector (PRS) since the Housing Act of 1988. Its main objective is to enhance tenant security, allowing them to remain in their homes with greater stability, while also making it easier to leave properties that fail to meet acceptable standards.

According to the Government, this reform is essential because “while most landlords offer a good service, the [PRS] currently delivers the least affordable, lowest quality, and most insecure housing of all tenure types.”

As the bill is expected to become effective in a matter of Months, it is important that landlords understand the changes and how to implement them properly to remain compliant. Below we have listed all the proposed changes.

1) Abolish fixed-term assured shorthold tenancies (ASTs)

Under the proposed legislation, all new and existing Assured Shorthold Tenancies (ASTs) will automatically convert to rolling, monthly “periodic” tenancies. This means:

  • No more 6- or 12-month fixed terms.

  • Tenants can leave at any time, provided they give at least two months’ notice.

  • Landlords lose the ability to require tenants to stay for a minimum fixed duration.

Once enacted, this rule will apply to all tenancies—new and existing. Fixed terms, as we’ve known them, will become a thing of the past.

The government’s goal is simple: make renting fairer and more flexible for tenants.

Here’s the rationale behind scrapping fixed-term agreements:

  • Greater tenant freedom: Tenants can move out without being locked into unsuitable or unsafe homes.

  • Consistency across the sector: A fully periodic system creates a more standardised, transparent rental market.

  • Aligned with the end of Section 21 “no-fault” evictions, which are also being scrapped under the same bill.

In short, this is part of a broader effort to rebalance power between landlords and renters.

2) Abolish Section 21 Eviction

Section 21 of the Housing Act 1988 allowed landlords to end assured shorthold tenancies without giving a reason, as long as proper notice (usually two months) was served. It was a simple, effective route for regaining possession — widely used to manage portfolio changes, sell properties, or deal with tenant issues informally.

However, critics argued that it gave too much power to landlords, contributed to housing insecurity, and was used to intimidate tenants who complained about poor conditions.

Now, under the Renters (Reform) Bill, Section 21 has been abolished. Landlords must instead provide a valid reason under an updated Section 8 notice to regain possession of their property.

3) Limited Rent Increases

the shift to periodic tenancies means Section 13 notices will be the only way for landlords to raise the rent; these can only be served once per year.

To balance the removal of Section 21, the government plans to strengthen Section 8 by:

  • Adding new grounds, such as repeated rent arrears or a landlord’s genuine wish to sell or move back in.

  • Streamlining court processes to reduce delays.

  • Possibly introducing mandatory grounds for certain landlord needs.

These changes are intended to ensure landlords still have fair and legal means to repossess properties when needed.

4) Expand Section 8 Possession Ground

5) Ban on Rental Bidding

Under the new Renters Rights Bill, rental properties must be offered at a fixed price, and landlords or agents are prohibited from encouraging or accepting higher offers. This move aims to level the playing field for tenants and bring greater transparency to the rental market.

Key Impacts for Landlords:

  • No More “Best Offer” Deals: You must accept applications based on the listed rent—no more accepting higher offers under the table.

  • Clearer Marketing: Advertised rental prices must be firm. Avoid any language that could imply flexibility or invite bidding.

  • More Structured Tenant Screening: Focus will shift further toward tenant suitability based on references, income, and background checks, rather than how much they can pay.

The Landlord Ombudsman Scheme is a mandatory redress mechanism designed to improve dispute resolution between landlords and tenants. Under the new legislation, all private landlords will be legally required to join an independent ombudsman service, regardless of whether they use a letting agent or manage the property themselves.

This is a major shift, especially for landlords who’ve never had to be part of a formal redress scheme before.

If you're a landlord, here's what you'll likely need to do:

  • Register with the government-approved ombudsman service once the scheme is live.

  • Pay an annual fee (amount TBC) to remain a member in good standing.

  • Engage with complaints in good faith and respond within expected timeframes.

  • Comply with the ombudsman’s decisions, which will be legally binding.

The exact rules, costs, and timelines will be confirmed as the bill progresses—but proactive landlords should start preparing now.

6) Introduction of a landlord Ombudsman

7) Create a private Rented Sector Database

The PRS Database will be a national digital register of landlords and rental properties in England. It aims to bring transparency, accountability, and a clearer picture of the rental market for tenants, councils, and central government.

Under the Renters (Reform) Bill, all landlords will be required to register themselves and their properties on the database. It will be overseen and enforced by a new body called the Private Rented Sector Ombudsman, which will also handle complaints and disputes.

8) Apply for Decent Homes Standard

Originally introduced in 2000 for the social housing sector, the Decent Homes Standard sets out minimum conditions a property must meet to be considered "decent." Under the new proposals in the Renters (Reform) Bill, the government plans to apply this standard to all rented homes, including those in the private sector.

A “decent” home must:

  1. Be free from serious health and safety hazards (under the Housing Health and Safety Rating System, or HHSRS).

  2. Be in a reasonable state of repair.

  3. Have reasonably modern facilities (like kitchens and bathrooms).

  4. Provide a reasonable degree of thermal comfort (effective heating and insulation).

9) Prohibit Discrimination

The Renters’ Rights Bill reinforces and expands on existing anti-discrimination laws, making it illegal for landlords to:

  • Refuse to rent or terminate a tenancy based on a tenant’s race, color, national origin, religion, sex, disability, sexual orientation, gender identity, or familial status.

  • Set different terms or conditions, such as higher rent or deposit requirements, based on those protected characteristics.

  • Use discriminatory language in rental listings or tenant communications.

  • Inquire into or act upon a tenant’s immigration status, unless explicitly allowed by law.

  • Reject applicants solely because they use housing vouchers, public assistance, or other non-wage income.

10) Allow Renting with Pets

Under the proposed Renters Bill, tenants will have the right to request to keep a pet, and landlords cannot unreasonably refuse. While this doesn’t mean all pets must be allowed automatically, it does signal a significant move toward making pet-friendly rentals the norm.

The bill also includes a provision allowing landlords to require pet insurance to cover potential damages, offering landlords a new level of protection.

Why the Change?

There are good reasons behind this reform:

  • Pet ownership has surged, especially since the pandemic.

  • Tenants struggle to find pet-friendly housing, often facing rejection or high fees.

  • The government aims to make renting fairer and more stable — and allowing pets plays a big part in that.

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