Renters Rights Bill Stage: 1 - 7/05/2025

The Renters Rights Bill is advancing through Parliament with key committee sessions taking place this May. As the bill moves closer to becoming law, we examine the latest updates, analyze potential impacts on landlords and tenants, and outline the timeline for implementation.

Current Stage and Timeline

The Renters' Rights Bill is currently progressing through the House of Lords Committee Stage, with the most recent update on the UK Parliament website showing it was last updated on May 1, 2025. According to the parliamentary schedule, committee sessions are planned for May 6, May 12, and May 14, 2025.

After completing the committee stage, the bill will proceed to the report stage, followed quickly by the third reading. The bill is expected to become law by summer 2025, with an implementation target of October 2025. This schedule provides landlords and tenants time to prepare for the significant changes that will reshape the rental sector.

Key Provisions of the Bill

The Renters' Rights Bill represents the most significant overhaul of the private rental sector in decades. The core reforms of the bill include several major changes to how rentals operate in the UK:

Abolition of Section 21 "No-Fault" Evictions

Section 21 notices , which currently allow landlords to evict tenants without providing a reason, will be abolished. This change aims to provide greater security for tenants, as landlords will now need specific, legally defined grounds to end a tenancy.

Housing Minister Tracy Adams has emphasized that this is a fundamental shift, designed to "rebalance the relationship between landlords and tenants."

Conversion to Periodic Tenancies

The bill will convert all fixed-term assured shorthold tenancies (ASTs) into rolling periodic tenancies. This means tenancies will continue indefinitely unless ended by either party through proper notice. Tenants will be able to give two months' notice, while landlords will need to provide four months' notice (applicable after eight months of tenancy).

Despite the government's push for periodic tenancies, it's worth noting that industry data from Goodlord reveals most tenants actually prefer fixed-term arrangements, with 58.5% favoring fixed-term renewable tenancy agreements compared to just 29.7% who prefer rolling periodic tenancies.

Private Rented Sector (PRS) Database

A comprehensive database for the private rental sector will be established, requiring landlords to register their properties. Non-compliance with registration requirements could result in civil penalties of up to £7,000 for initial offenses, increasing to £40,000 for repeated breaches.

Decent Homes Standard

All privately rented properties will need to meet the Decent Homes Standard, ensuring they are safe, secure, and hazard-free. Local authorities will have enhanced enforcement powers to ensure compliance.

Market Impact and Statistics

The Renters' Rights Bill comes at a time of significant pressure in the UK rental market. Recent statistics reveal the challenges facing both landlords and tenants:

According to the latest data from Uswitch, annual rental growth is projected to slow from 5% in 2024 to 3.5% in 2025, before dropping to 3% in 2026 and 2.5% in 2027. If these projections are correct, the UK's average rental costs could rise by 18.2% between 2023 and 2027.

Current Rental Market Statistics

The most recent ONS statistics show average rents have increased significantly across the UK:

According to the latest HomeLet Rental Index data, the average rent price in the UK for April 2025 is £1,298. Excluding London, the UK average drops to £1,115. The monthly increase from March was 0.8%.

Private Rental Sector Size and Composition

The private rented sector makes up a significant portion of UK housing:

Almost a fifth (18.8%) of UK homes are privately rented as of 2024. The government's England Private Landlord Survey 2024 found that 45% of landlords own just one rental property, with 38% owning between two and four. Only 17% of landlords own more than five properties.

Industry Reactions

Landlord Concerns

The National Residential Landlords Association (NRLA) has highlighted the need for a more efficient court system to handle disputes and evictions under the new rules. Without reforms in this area, landlords fear that processes may become lengthier and more challenging.

Key industry concerns include:

Tenant Perspectives

Tenant advocacy groups view these changes as overdue and essential for addressing unfair practices in the rental market. Organizations such as Shelter and the Renters' Reform Coalition believe the reforms will deliver much-needed security and fairness for renters, particularly in high-demand areas.

Preparing for Implementation

With the Renters' Rights Bill expected to become law by summer 2025, landlords and tenants still have time to prepare for the changes. The implementation date is targeted for October 2025, giving the sector several months to adjust to the new regulations.

For Landlords

Landlords should begin preparing for the bill's implementation by:

For Tenants

Tenants should understand how these changes will affect their rights and responsibilities: