Understanding the Renters (Reform) Bill: An Overview of Likely Changes
Following its Third Reading in the House of Lords on 21 July 2025, only minor drafting amendments were made to the Renters (Reform) Bill (‘the Bill’), signalling the Lords’ broad approval of its substance.
If the Bill is given Royal Assent in its current form — with no last-minute policy reversals when it returns to the Commons on 8 September 2025 — it will mark the most significant overhaul of tenancy law since the Housing Act 1988.
This article outlines the key reforms envisaged by the Bill to help landlords, tenants, and investors prepare for the changes ahead.
No-Fault Eviction Abolished in Full
One of the most high-profile reforms is the abolition of section 21 Housing Act 1988, which currently allows ‘no-fault eviction’ – the framework by which a landlord can evict a tenant by 2 months’ notice without providing any reason for doing so once the contractual term has expired.
In its place, the Bill introduces a stricter regime: landlords must give 4 months’ notice and rely on one of the statutory grounds in section 8 to evict a tenant.
Notable grounds for eviction include grounds 1 (where the landlord or their close family member intends to move in) and 1A (where the landlord intends to sell the property), which each carry an additional 12-month restriction on re-letting intended to deter misuse by landlords with no genuine intention to occupy or sell.
Furthermore, the threshold for mandatory eviction for rent arrears has been raised: tenants must now be in three months of arrears at both notice and hearing stages, increased from two months.
Whilst the Government has sought to balance landlord and tenant interests, the overall result will be a lengthier, more complex and more uncertain eviction process.
Fixed Terms Phased Out — The Move to Open-Ended Letting
The Minister of Housing, Communities and Local Government stated at the second reading that ‘there is no place for fixed terms’ in the reformed tenancy system.
Under the Bill, all new tenancies will be periodic. The tenant can serve 2 months' notice at any point after moving in, whereas landlords may only terminate under section 8 and by giving 4 months’ notice.
Any fixed term stipulated in the tenancy agreement will be unenforceable against the tenant; the tenant’s statutory right to give 2 months’ notice at any time will override any contractual end date.
Despite concerns raised in the House of Lords over increased rents and vacancy, this reform remained intact at the third reading and will take effect unless removed by the Commons in September.
Consequently, the fixed term assured shorthold tenancy to which landlords and tenants have become accustomed will soon be in the rear-view mirror.
Student Tenancies – A Targeted Exception
Following pressure from universities and student landlords, the Bill carves out a narrow exception for student tenancies, via a new ground 4A for possession.
Originally, ground 4A applied only to Houses in Multiple Occupation (HMOs) with three or more bedrooms, but after criticism at the second reading it was extended to non-HMO properties (e.g. smaller one or two bedroom properties which account for a third of all student housing).
Ground 4A will allow landlords to terminate the tenancy at the end of the academic year, provided that:
The property is let to full-time students only;
Tenants are notified in writing before the tenancy begins that possession will be sought under Ground 4A;
The tenancy will terminate between 1 June and 30 September, aligning with the typical academic calendar; and
The landlord intends to let the property to new students for the next academic year.
This exception plays a key role in supporting the student rental market, but landlords must ensure all legal conditions are satisfied from the outset of the tenancy.
Stricter Rules for Rent Increases – One Per Year, Market-Based, and Challengeable
Under the Bill, rent may be increased once per year only and must reflect local market rates. Landlords must serve a Section 13 notice at least 2 months in advance of the end of the rent period.
Further, tenants are now able to challenge unfair increases at a First-tier Tribunal. Such challenges will be free of charge and will delay the increase in rent until the matter is determined. The tribunal will have powers to:
Reduce the rent if the landlord’s figure is deemed excessive;
Delay the increase in cases of financial hardship;
Reject increases that appear retaliatory.
It has been suggested by some dissenting Lords that these heightened rights for tenants to challenge landlords’ decisions will simply swamp the already-clogged tribunals with vexatious claims. Its impact on the courts and tribunals systems remains to be seen.
Pet Ownership — Statutory Rights for Tenants
The Bill introduces a statutory right for tenants to request their landlords’ permission to keep a pet. Unsurprisingly, this proposal has been welcomed by tenants and met with resistance from landlords.
Landlords must not unreasonably refuse their consent to pet requests and must provide a valid reason for any refusal in writing. If consent is granted, it is binding for the duration of the tenancy: it cannot later be revoked unless breached (e.g. due to excessive noise or damage).
It should be noted that a ban on pets in the landlord’s head lease is outlined in the Bill as a valid reason to refuse a tenant’s request to keep one. In such cases, the landlord can lawfully withhold their consent under the new legislation.
Going forward, tenancy agreements should contain a clear pet clause prescribing clear contractual reasons for refusal and conditions for acceptance.
The Lords rejected a Commons clause allowing landlords to require pet insurance. Instead, they preferred a ‘pet damage deposit’ equivalent to three months’ rent to cover any damage caused by pets. Whether amendment is retained will be decided by the Commons in September.
Pre-Tenancy Advance Rent – Capped at One Month
Landlords will be limited to requesting no more than one month’s advance rent for the period after the tenant has signed the agreement but before they have taken up possession. This will only apply to tenancies created after commencement of the Bill.
While aimed at improving access for lower-income tenants, the reform may restrict landlords’ ability to take a chance on ‘risky’ tenants by accepting 6 months’ advance rent — particularly with overseas students or short-term contractors.
A New Decent Homes Standard
The Bill lays the foundation for a statutory minimum quality standard for private rented properties, to be detailed in secondary legislation after industry consultation.
Additionally, the extension of ‘Awaab’s law’ (s.42 Social Housing (Regulation) Act 2023) to the private rental sector will enforce strict time limits for landlords to respond to safety hazards such as mould, damp and ventilation issues.
Local authorities will gain enhanced powers to fine landlords and act on tenant complaints without notice.
The Property Portal
A new ‘private rented sector database’ will be introduced, requiring all landlords to register their properties and compliance status.
The portal — similar to HMRC’s online systems — will allow tenants to view property standards, past enforcement action, and landlords’ compliance history before entering a new tenancy.
Local authorities will also be able to view landlords’ compliance with their new legal obligations and previous enforcement actions.
‘Rental Bidding Wars’ — Now Prohibited
Another highly consequential reform is the prohibition of rental bidding wars, a commercial practice that has become increasingly common in high-demand areas like London.
Under the Bill, landlords and letting agents must advertise rent at a fixed figure. They must not solicit or invite higher offers than this, nor can they suggest that higher offers might secure the tenancy. Crucially, they cannot accept an unsolicited higher offer, even if made voluntarily, without re-advertising the property at an increased rent.
This rule is intended to promote transparency, fairness, and equal access to housing.
Breaches may result in civil penalties of up to £7,000 for a first or minor offence, and up to £40,000 for persistent or severe offending. Offenders may also be flagged in the new Property Portal, reducing their appeal to prospective tenants.
A Turning Point for Residential Lettings
The Bill now returns to the Commons for final scrutiny of the Lords’ amendments, though no material reversals are expected. If passed unchanged, landlords should expect implementation of these reforms in a phased fashion – likely from mid to late 2026.
For many landlords — especially those who are accidental landlords or those with smaller portfolios — the increased procedural and statutory expectations will require significant adjustments. For assistance in navigating the anticipated new regime, do not hesitate to contact our team.
Mark Vinall, Partner, Ashley Wilson Solicitors LLP
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