What Is the Renters’ Rights Bill? All the Details of This Looming Piece of Legislation

Few things are set to impact landlords and the rental market like the Renters’ Rights Bill will. Currently, some property investors may be worried about how their investments will pan out in the face of a struggling economy, inflationary challenges, and perhaps even global trade wars[1].

But, while we can’t be exactly sure of how all these issues will affect the BTL market, we know the Renters’ Rights Bill will force change. Landlords will need to adapt and as its rollout approaches, more and more BTL investors will be asking themselves what is the Renters’ Rights Bill? And how can I prepare?

We’ll aim to address some of these concerns in this blog. We’ll explore exactly what changes are on their way, the timeframes involved, and how the market may adapt.

What Is the Renters’ Rights Bill? Covering the Basics

The legislation has been in the works for so long now (as well as the headlines), that many in the property world have likely already asked the question of what is the Renters’ Rights Bill at least once since Labour came to power. But, progression has ramped up in recent months, so it’s worth reminding ourselves of exactly where we stand.

In a nutshell, it is a form of legislation (the spiritual successor to the Conservatives’ Renters’ Reform Bill[2]) that aims to completely reform the rental market. As the government itself puts it[3]: “The Renters’ Rights Bill delivers our manifesto commitment to transform the experience of private renting, including by ending Section 21 ‘no fault’ evictions.

The bill will improve the current system for both the 11 million private renters and 2.3 million landlords in England. It will give renters much greater security and stability so they can stay in their homes for longer, build lives in their communities, and avoid the risk of homelessness”.

Key Changes Under the Renters’ Rights Bill

The bill is wide ranging, with a fully amended version published in early 2025 topping 220 pages[4]. But, there are a few key proposals that could dramatically affect how landlords operate – more so than others.

To start with, the bill will force landlords to give a written “statement of terms” to tenants before a tenancy is entered into, and there is a list of specific information that must be provided[5]. Currently, while tenancy agreements are the norm, they are not a legal requirement.

Also, fixed-term assured tenancies will be abolished and instead, all tenancies will be periodic. The bill is also set to increase the mandatory rent arrears threshold for eviction from two to three months’, while doubling the notice period, from two to four weeks.

How much rent is collected from a property is also set to be upended. Soon, landlords may only be able to receive up to one month’s worth of rent prior to the start of a tenancy, while also only being able to raise rents once a year. This is in an effort to protect tenants from unscrupulous landlords, rental bidding wars, and being “forced out the back door”.

Arguably, the most controversial change concerns eviction rules. Section 21 evictions, the kind that allow landlords in England to end ASTs without providing a reason[6], will be banned.

Elsewhere, the bill will introduce a national digital private rented sector database along with a new Ombudsman service, apply a “decent homes standard” to the market, usher in Awaab’s Law, and more.

The Timeframes Involved

Clearly there is a lot to prepare for. We need to consider what is the Renters’ Rights Bill sooner rather than later. By the looks of things, the Renters Rights Bill will come to the forefront this year – 2025.

As of writing, the Renters’ Rights Bill is in the committee stage in the House of Lords[7], more than half way through the bill passage process. Recent developments revealed that amendments were proposed in the House of Lords including allowing fixed term tenancies of up to 12 months, linking rent rises to inflation, and letting small landlords continue to be able to issue Section 21 notices[8]. It’s unclear if these amendments will pass, however.

Regardless of what exactly will be rolled out though, landlords only have a few months to prepare. It’s important to understand that “when will the Renters’ Rights Bill become law”, and “when will the renters rights bill come into force” are two very different questions.

The bill is expected to pass Royal Assent and become law after Easter 2025[9]. It will likely be enforceable in the second half of the year.

How May It Affect the Market

Landlords likely aren’t the only ones asking themselves what is the Renters’ Rights Bill. Renters are likely to also be dramatically affected by its introduction.

While the new regulations are designed to support renters, they could have ramifications that makes things difficult for them. For example, to keep up with the rising costs of accommodating the decent homes standards, rents may have to rise. The costs could be passed on to tenants.

It may also be challenging for some smaller landlords to keep up with the changes. Rather than deal with the new landscape, many may simply abandon the market. In fact, there is already evidence proving that this is a key concern in the market.

What Is the Renters’ Rights Bill’s Impact on Landlords So Far?

Ironically, the bill is causing what its creators hoped to make history. In advance of the new rules, there has been a significant rise in section 21 evictions, according to the Ministry of Justice[10]. Some 32,287 claims were issued in 2024, up 7% on 2023.

There has also been a spike in landlords putting their properties up for sale in the face of tougher rules, as well as higher costs. Over 111,000 rental properties were sold to owner occupiers in 2024 alone[11].  Ultimately, this limits options for renters.

Indeed, our own research revealed nervousness among UK landlords. For our independent Q1 research, we surveyed landlords for their thoughts on the current market, and the outlook for their portfolios in 2025. Some 64% of our respondents either somewhat or strongly agreed with the statement: “I have decided to pause making any new property investments due to concerns around incoming regulatory and tax changes”.

Of course, so far, this is all a reaction to a bill that is yet to be rolled out. As it becomes law, landlords and property investors may find that it is not as damaging as feared. Or, perhaps the market will face an even bigger downturn as summer approaches. Either way, Market Financial Solutions and the specialist market will be there to accommodate any new challenges or opportunities that emerge.