Richard Moore
The Renters Reform Bill (“RRB”) has recently (15.5.2025) concluded the Committee Stage in the House of Lords, having passed all of its stages in the Commons. The Bill, if it passes, as seems inevitable, will lead to major changes in the relationship between landlord and tenant. The Bill was a manifesto commitment of the Labour Party at the General Election. By convention, the Lords will not block a Bill which embodies such a commitment.
The reforms will apply to all tenancies which are either Assured Shorthold Tenancies (“ASTs”) or Assured Tenancies (“ATs”) regardless of whether they were entered into before or after the commencement of the Act. However, it only applies to ATs and ASTs so it will not affect any tenancies that may still exist which were granted pre-1989 and are under the regime of the Rent Act 1977, nor will it affect Secure Tenancies under the Housing Act 1985.
Abolition of ASTs
The major effect of the reform will be the abolition of ASTs entirely (RRB s.2), together with the abolition of the (inaccurately named) “no fault” evictions under Section 21 Housing Act 1988. Possession will only be possible under Section 8 and by making out one of the mandatory or discretionary grounds under Schedule 2. These have been extensively amended. The time limits before proceedings can be started have, in many cases, been extended.
All tenancies to be periodic
Coupled with the abolition of ASTs, all ATs will be converted into periodic tenancies, with a rent period not exceeding one month (RRB s.1). This is regardless of whether the tenancy is currently a fixed term.
The tenant will have the right to terminate the periodic tenancy by giving two months’ notice in writing (s22). RRB s.23 inserts a new Section 5A to the PEA 1977 which provides that any provisions as to the means of giving a notice in writing is of no effect, so landlords will no longer be able to insist on a particular form of notice.
Deposits
The deposit regime which applied to ASTs is being brought over into the AT regime so that a landlord will not be able to obtain a possession order, except on the grounds relating to anti-social behavior, if the deposit is not protected (s28).
Advertising and Discrimination
The legislation provides that lettings should be offered at a fixed price and it does not allow landlords to seek bids for a property (RRB s58). The local authority can impose a financial penalty of up to £7,000 if this is breached. A landlord can only take one month’s rent in advance (or 28 days if the period of the tenancy is less than a month).
Landlords will no longer be able to discriminate against tenants because of their having children or being on benefits (RRB Chapter 3). This chapter invalidates terms in mortgages, insurance contracts and superior leases which restrict a child from living at the premises, of prohibit letting to people on benefits. However nothing in the chapter prohibits taking a person’s income into account in considering the affordability of the property (RRB s.43).
Pets
The RRB also contains quite lengthy provisions from s.12 onward creating an implied term that the tenant is entitled to keep a pet if the landlord consents, such consent not to be unreasonably withheld. The tenant will have to pay for pet insurance or pay the landlord’s reasonable costs of having pet insurance.
Rent Increases
Rent increases can only be made under the statutory procedure under Section 13 HA 1988. This will require a notice from the landlord. The rent can only be increased to a market rent: this is ostensibly to prevent a landlord from using financial pressure to evict a tenant. If the tenant believes that the figure sought is higher than the market rent they will be able to challenge it in the FTT.
The abolition of ASTs will mean that landlords will no longer be able to increase the rent under the threat of service of a Seciton 21 Notice.
Database
Part 2 of Chapter 3 of the RRB provides for the creation of a database. This database is perhaps the most radical of the reforms. Nobody will be allowed to market a property for rent in the private rented sector unless the landlord is registered on it (s83). Furthermore if a landlord is not registered then they will not be able to obtain possession except on grounds 7 and 14 which relate to nuisance and anti-social behavior (s91).
Commencement
The way in which the legislation will commence is set out in Section 145. The provisions as to the abolition of ASTs will come into force on such day as the Secretary of State shall appoint (s145).
Effect on existing Section 21 Notices.
Schedule 6 of the bill deals with transitional provisions. The most important is in Para. 3 which deals with existing Section 21 Notices. First, if proceedings have been commenced the notice will remain valid until proceedings on the notice are time barred or concluded, and the tenancy will remain an AST until that point is reached.
Second, where a notice has been served but proceedings have not been issued before the commencement of the Act, the landlord will have until the end of the “applicable period” to do so. The applicable period is the shorter of six months from the service of the notice or three months from the commencement of the Act.
For example, if the Act commences on 1.8.25:
If a notice was served on 1.3.25 the landlord will have until 1.9.25 to bring proceedings.
If a notice was served on 1.7.25 the landlord will have until 1.11.25 to bring proceedings.
The progress of the Bill can be followed in Hansard
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RICHARD MOORE
The Waterhouse 2nd Floor
41 Spring Gardens
Manchester
M2 2BG
0161 870 9969