Understand the upcoming Renters’ Rights Bill: the abolition of Section 21 evictions, new compliance responsibilities, rent limits, and how landlords can adapt.

1. What Is the Renters’ Rights Bill?

The Renters’ Rights Bill, introduced in late 2024 and progressing through Parliament, is poised to overhaul rental laws in England. It builds on an earlier Renters (Reform) Bill, replacing it and extending tenant protections significantly.

Key changes include:

• Abolition of no‑fault Section 21 evictions, turning all assured shorthold tenancies (ASTs) into periodic tenancies

• Rent increases limited to once per year via Section 13, with tenants able to challenge excesses at tribunal.

• Ban on rent bidding wars – landlords must only accept the advertised rent.

• New landlord database and Private Rented Sector Ombudsman for enforcement and dispute resolution.

• Decent Homes standard and non‑discrimination laws covering benefit recipients, families, and pet ownership requests.

• Enhanced penalties and extended rent repayment powers (up to two years of rent) with stricter enforcement against rogue landlords.

2. Major Impacts on Landlords

Abolished Section 21 & Periodic Tenancies

This limits eviction flexibility: landlords must rely on Section 8 grounds, and new notice periods for reasons such as selling or moving in have been extended—4 months notice after a 12‑month protected period

Rent Increase Restrictions

With hikes capped to once a year and open to challenge, landlords lose control over frequency and can no longer accept higher offers from competitive applicants

Compliance Obligations & Penalties

Failure to meet minimum standards (e.g. Decent Homes) or misuse tenants’ rights can result in fines up to £7,000, plus reputational damage via the ombudsman system

Administrative Burden

Landlords must register on a new national PRS database and ensure all needed documentation is in place. Non‑compliance triggers penalties and potential banning orders

Increased Costs Potentially Passed to Tenants

Legal fees, required property upgrades, insurance for pets, and registration costs may increase efforts to offset by raising rents—though rent increases remain strictly regulated

3. Views from the Landlords’ Community

• Many landlords are concerned that restrictions on eviction and rent flexibility will force some to exit the market, reducing supply and potentially increasing rent levels overall

• Letting agents will face joint accountability—agents can now be fined for compliance failures, not just landlords

• Critics warn of court system overload, as reliance on Section 8 evictions and tribunal disputes rise

4. How Can Landlords Prepare?

1. Review tenancy strategies: With fixed‑terms ending, prepare for periodic arrangements and Section 8 procedures.

2. Upgrade property standards to align with the new minimum.

3. Budget for compliance costs, including registration, insurance, and ombudsman contributions.

4. Avoid discrimination: review policies for tenant selection, including families, benefits recipients, or pet owners.

5. Stay informed on the expected commencement in early 2026, allowing time for transition

Final Thoughts

The Renters’ Rights Bill represents a seismic shift in UK residential lettings. While tenant protections are strengthened, landlords face new constraints and obligations. The trade-off: higher standards and legal certainty, but potentially lower flexibility and added costs.

Landlords and their agents should proactively adapt now—ensuring operations, contracts, and property standards meet the evolving legal landscape.