The Renters’ Rights Bill 2025: What It Means for Landlords & Tenants

The Renters’ Rights Bill 2025

The Renters’ Rights Bill 2025 (the “Bill”) is set to significantly overhaul the private rented sector in England, marking a pivotal moment in the Government’s ongoing attempts to rebalance the rights and responsibilities of landlords and tenants.

The Bill proposes wide-ranging reforms, including the abolition of Section 21 “no-fault” evictions, changes to tenancy structures, and increased enforcement powers. Its implications will be far-reaching—not only for landlords and tenants, but also for legal and property professionals.

End of Section 21 and Assured Shorthold Tenancies

One of the most high-profile—and controversial—elements of the Bill is the abolition of Section 21 evictions under the Housing Act 1988. As a consequence, Assured Shorthold Tenancies (ASTs) will come to an end, and all private tenancies will become assured tenancies.

Despite this change, the requirement to protect tenancy deposits will remain. Failure to do so will prevent a landlord from serving a valid Section 8 notice on most grounds.

Under the current law, Section 21 allows landlords to regain possession without providing a reason, provided at least two months’ notice is given and statutory requirements are met. While originally intended to encourage private letting, the process has long been criticised for leaving tenants vulnerable to eviction without justification.

The Bill shifts policy firmly towards reason-based evictions, requiring landlords to rely on lawful grounds—such as rent arrears or breach of tenancy—under the Section 8 framework.

Periodic Tenancies Only

Fixed-term tenancies will no longer be permitted. All tenancies will become periodic, operating on either a monthly or 28-day basis.

Tenants will have the right to end their tenancy by giving two months’ notice, providing greater flexibility and security.

Grounds for Eviction Under Section 8

With Section 21 removed, the Bill strengthens and expands the Section 8 eviction framework.

Existing Grounds

Landlords will continue to rely on familiar grounds, including:

• Rent arrears (Grounds 8, 10 and 11)
• Breach of tenancy (Grounds 12–15)

Owner Occupation and Sale

The Bill retains grounds for eviction where a landlord intends to sell the property or reoccupy it, but with additional safeguards to prevent misuse.

Proposed New Mandatory Grounds

Key proposed additions include:

• Ground 1A – possession with intention to sell (available after 12 months, with at least 4 months’ notice; re-letting prohibited for 3 months)
• Ground 1B – sale under a rent-to-buy scheme
• Grounds 2ZA / 2ZB – termination of a superior tenancy
• Ground 4A – student HMOs
• Grounds 5A–5G – employment-related lettings
• Ground 6B – breach of statutory obligations, such as licensing failures

The Government also proposes increasing the mandatory rent arrears threshold from two months to three months, and extending the notice period from two weeks to four weeks.

For most grounds, landlords will still need to have complied with deposit protection requirements in order to obtain a possession order.

Financial Penalties and Enforcement

The Bill proposes amendments to the Protection from Eviction Act 1977, strengthening local authority enforcement powers.

Landlords may face financial penalties—or potentially criminal sanctions—for breaches such as:

• Granting prohibited fixed-term tenancies
• Serving eviction notices on inappropriate grounds
• Unlawful eviction or harassment

Local authorities may be empowered to impose fines as an alternative to prosecution, which is expected to encourage stronger enforcement.

Rent Repayment Orders are also set to be extended to 24 months, and expanded to target sham rent-to-rent arrangements.

Rent Increases, Bidding Wars and Rent in Advance

The Bill restricts rent increases to once per year, using the Section 13 procedure. The notice period will increase from one month to two months.

Bidding wars will be prohibited: landlords must advertise a fixed rent and cannot accept higher offers.

Rent in advance will be capped at one month’s rent, with breaches potentially attracting fines of up to £5,000.

Ombudsman and Landlord Database

All landlords will be required to join a redress scheme, regardless of whether they use a letting agent. Failure to comply may result in fines.

A new Private Rented Sector database will also be introduced, similar to Rent Smart Wales, increasing transparency and accountability across the sector.

Pets

The Bill proposes an implied term allowing tenants to keep pets with the landlord’s consent, unless refusal is reasonable. Landlords may require pet insurance to cover damage.

Decent Homes Standard and Extension of Awaab’s Law

A Decent Homes Standard will be introduced to the private rented sector, ensuring minimum standards of safety and habitability.

The Bill also intends to extend Awaab’s Law—which mandates swift action on serious hazards such as damp and mould—to private rentals, giving tenants enforceable repair rights.

Read more about Awaab’s Law on Phoenix Legal Website. 

Awaab's Law Explained

Conclusion

The Renters’ Rights Bill 2025 represents a landmark shift in England’s private rental market. Its aim is to provide tenants with greater security and decent housing, while preserving landlords’ ability to recover possession where there is genuine justification.

Much of the Bill’s success will depend on local authority enforcement, and concerns remain around court backlogs and the absence of new incentives for private tenant action.

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