Renters' Rights Bill 2025

The overall objectives of the Renters' Rights Bill is to give tenants greater security and stability in their rental home, but also to avoid the risk of homelessness. The Bill is still in parliamentary review and is subject to changes.

These are the key areas:

1. Section 21 and Open-Ended Tenancies

No more S21 notices
No more fixed terms
Tenancies keep going unless terminated by the tenant or under grounds linked to specific events
Prosecution or civil penalties for trying to grant anything else
Very little prospect of any form of any fixed term

Our advice: It is more important than ever to get the right tenants in your properties

2. Rent Payment

Rent must be charged monthly or 28 days where rent is paid weekly
Shorter periods are allowed, but nothing longer
Rent in advance is unlikely to be acceptable in the Bill
A person who paid rent in advance as a tenant under assured tenancy is entitled to be repaid any part of that rent that relates to days falling after the end of tenancy

Our advice: Guarantors become more important but a lot is still not yet known. Keep in touch with us for updates on this as the Bill progresses.

3. Tenant Notice

Must be 2 months or such shorter time as agreed in writing
Common law suggests notice must expire at the end of the rental period but awaiting details to confirm this
Means of notice cannot be specified – email, written, text message
But you can specify where notice must be served e.g. Agent, Landlord
Notice by one joint tenant is binding on all

Our advice: This has been in place in Scotland for years and tenancies on average are not much shorter.

4. Notices

All notices under s8 grounds which have been expanded including the important ones so you can sell your property or move back in
Most “no-fault grounds” are now 4 months
4 weeks for rent arrears
No notice for ABS, but the court cannot give possession earlier than 14 days from the date of notice

Our advice: It is quite easy to get these notices wrong and inadvertently break the rules and get a fine, so let us guide you.

5. Rent Arrears

Notice periods doubles from 2 weeks to 4 weeks
Grounds 10 & 11 are largely the same
Grounds 8 extended from 2 months arrears to 3 months
Proposal for a mandatory ground for repeated arrears has not been included in the Bill, discretionary ground still available
Combination of changes means nearly 4 months of arrears before the start of court proceedings

Our advice: Get rent guarantee insurance and make sure rent arrears are chased swiftly.

6. Possession to Sell

New Ground 1A - Landlord wishes to sell
Minimum 12-month occupation period - up from 6 months. That is from start of the tenancy to the notice expiry
4-month notice period - up from 2 months
Penalty of up to £7,000 for any marketing within restricted period
Restricted period starts with notice to expiry date and ends 12 months after possession

Our advice: It’s important to use a reputable agent who checks you are compliant and does not put you at risk of a fine.

7. Rent Increases

Rent increases are by way of s13 notice only – any other structure is invalid and a potential offence
No permissible agreement until after notice is served or tribunal determination of a lower sum
Notice changed to 4 months and possible (free) appeal to FFT
Tribunal sets new rent payable from date of hearing or can delay increase for up to 2 months

Our advice: Make sure you have good comparables for your market rent increase and ensure rent is at market rent before the Bill comes in if possible.

8. Written Terms

Tenants must be provided with written terms for their tenancy
Regulations to follow, but echoes of the Wales model
Must be served before tenancy starts
Civil penalties of up to £7,000 for landlords or agents who have agreed to perform this obligation
In addition to a penalty rent repayment orders

Our advice: This was rather a headache for Wales. We do not know the detail but definitely a problem to delegate to someone else. We have a compliance specialist drafting these to avoid any issues.

9. Rent Bidding

All adverts and offers must specify the rent
No offer above this amount can be invited or accepted
Financial penalty of up to £7,000 where LHA believe this has happened on “balance of probabilities”

Our advice: Get the rent right at the beginning to maximise your return.

10. Pets

Once the tenancy has been granted, tenants can request a pet, and such requests cannot be unreasonably withheld
It’s likely it will be reasonable to refuse if superior landlord or lease says no pets
Tenant can be required to pay for pet insurance and TFA will be duly amended
Any insurance policy restriction will cease to exist at renewal

Our advice: Make sure any refusal is within timeframes and reasonable. Keep written evidence and make sure the insurance covers what you need.

11. Landlord Redress Scheme

Compulsory to join and allows for prospective, current and former tenants to complain
Membership before marketing – schemes can (and will) charge fees
There may be more than one scheme
Prosecution for failure to comply – up to £7,000 plus RRO and block on possession
Powers to expel

Our advice: Preparing evidence is a lot of work. We are used to being part of an Ombudsman. Let us help you with any issues that arise.

12. PRS Database