Renters’ Rights Bill: What’s Changing for Landlords

Renters’ Rights Bill: What’s Changing for Landlords

What Putterills is Doing to Help You Stay Ahead Updated May 2025

The Renters’ Rights Bill is on track to become law by July 2025. If you’re a landlord, that might sound daunting — but it doesn’t have to be.

At Putterills, we’ve been working through every detail of the legislation so you don’t have to. What follows is a straightforward breakdown of the changes, how they’ll impact you, and how we’re preparing for them, so you stay compliant, protected and well-informed.


A New Type of Tenancy and No More Fixed Terms

The heart of the Bill is a new tenancy system. Once the rules go live (expected sometime in 2026), all existing tenancies will convert automatically to monthly rolling agreements, including any currently fixed term.

This means that from the commencement date:
  • There will be no such thing as a 6- or 12-month fixed term
  • All tenancies will be periodic and continue month by month
  • There’s nothing to renew, because the tenancy never ends unless the tenant gives notice or the landlord serves notice under a valid legal ground

Tenants will be able to leave at any time, with two months’ written notice (even by text), provided the notice ends on the last day of a rental period.

This change also affects how rent is charged. From commencement:
  • All rent periods will default to one month
  • Even if you currently charge quarterly or annually, this will automatically shift to monthly
  • Landlords will no longer be able to require rent in advance for more than one calendar month, although voluntary advance payments will still be allowed once the agreement is signed

We’re already preparing our tenancy templates and client agreements to reflect this structure, so no action is needed from you yet.

Section 21 Will Be Gone — But Section 8 Is Still Here

The well-known “no-fault” Section 21 eviction is being abolished. Once that happens, any eviction must be justified using one of the updated Section 8 grounds for possession.

That might sound like bad news, but it’s not the whole story.
New and revised grounds have been introduced, and several are clearly designed to support good landlords.

For instance:
  • You’ll be able to seek possession if you or a close family member want to move into the property, but not within the first 12 months of a tenancy, and with four months’ notice
  • You can serve notice if you intend to sell the property, again, after 12 months and with four months’ notice
  • Serious rent arrears (three months or more) and anti-social behaviour still qualify for quicker action, including immediate possession in extreme cases

We’ll always guide you through the most effective and lawful route. Our team will draft the notice, gather the necessary evidence, and guide you through the process.

One important caveat: if a tenant vacates after you serve a Section 8 notice to sell or move in, you won’t be allowed to relet that property or list it on Airbnb for 12 months. Doing so risks a fine of up to £7,000, and the tenant may apply for a rent repayment order. It’s a detail that will catch some landlords out.


Say Goodbye to Rent Bidding — and No More Rent Review Clauses

The new system brings a stricter approach to how rent is advertised and increased.

Going forward:
  • The rent you advertise must be the rent you accept — rental bidding will be illegal
  • You won’t be able to ask tenants to pay more than the listed figure, even if they offer it voluntarily
  • You can still increase rent annually, but only by serving a Section 13 notice using the latest official form

Rent review clauses in tenancy agreements will have no effect. And you won’t be able to increase rent just by asking the tenant to sign a letter — the tribunal process will take over if the increase is challenged.

Again, we’ll handle this process for our managed clients. We’re already updating our systems to track rent increase dates and issue compliant notices on your behalf.


Pets, Children, and Benefit Discrimination — All Being Tightened

From commencement, it will be unlawful to turn down tenants just because they have children or receive benefits. Landlords will still be able to carry out affordability checks and reject applicants on legitimate grounds, such as overcrowding or inability to pay.
Requests for pets will need to be considered fairly. You can still say no, but only with a good reason, such as a lease restriction in a block of flats. Otherwise, refusals could be open to challenge.

We will continue to thoroughly vet applicants, conducting appropriate referencing and affordability checks. We will operate within the new boundaries of the law, but ultimately, a landlord can select the tenant they prefer as long as it is not discriminatory.

New Obligations — and More Accountability

A few key obligations are being introduced that every landlord will need to meet:
  • A National Landlord Database: You’ll be legally required to register yourself and each property. If you own properties in different legal entities (a personal name and a limited company), you’ll need to register each one separately.
  • A New Ombudsman Scheme: All landlords will have to join a redress scheme, even if they use a managing agent. Tenants will be able to raise complaints through the Ombudsman, and landlords could be required to pay compensation or carry out remedial work.
  • A New Decent Homes Standard: For the first time, private rentals will need to meet a national housing standard, focused on condition and safety.
  • Awaab’s Law: Timeframes will be set for responding to serious health hazards like damp and mould. Tenants will have the right to challenge landlords through the courts if issues are not dealt with quickly.
 
Local authorities will have significantly increased enforcement powers. Fines for non-compliance start at £7,000 and can rise to £40,000. Rent repayment orders of up to two years’ rent may also apply in serious cases.

And yes, local councils will have the right to enter business premises without a warrant when investigating certain breaches.


When Will This All Take Effect?

 The Bill is expected to become law in July 2025, but most changes (including the new tenancy system) will not start immediately. The government has said it will give landlords enough time to get ready, and indications are that the commencement date will be set in 2026, with other elements such as the landlord database and Ombudsman going live sooner.
 
We’ll update you every step of the way. But you don’t need to watch every headline, because we already are.

The final point to make is if you do not have a Rent Guarantee Insurance Policy in place, please speak to us as we feel this will mitigate a number of these changes Some of the key changes our policy provider has now included are

First month’s rent guaranteed

If the first month’s rent isn’t paid after a tenancy is signed, you can now claim immediately, without impacting future claims
Section 13 protection
If a tenant disputes a valid Section 13 rent increase, they will cover the difference between the previous and new rental amounts for up to six months, or until a First-tier Tribunal decision.
£1,000 property damage cover
They have quadrupled this protection, now offering up to £1,000, which helps bolster traditional deposits.
 
Increased accommodation and storage costs
To support landlords if they experience extended possession timelines:
  • Up to £175 per night for accommodation (up to 3 months)
  • Up to £15 per day for storage (up to 3 months) 
All other existing benefits will continue to apply ie nil excess etc.

If you’d like to review your existing agreements or discuss how this might impact a specific property, please contact the Putterills Lettings team. We’re here to help.


Get in touch with us

You may have noticed that prices have been rising in the private rental sector over recent years, largely thanks to a decrease in available properties where landlords are selling up and cashing out of their investments. Should you follow suit? Read this article to find out...

Black mould, an unsightly and potentially dangerous issue, can raise serious concerns for potential buyers and is often visible in marketing photographs. Therefore, it's crucial to address this issue before listing your property for sale. But what exactly causes it, and how can you effectively resolve the problem?