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Antony Antoniou – Property Investments

Renter's rights rules explained

Renter’s rights rules explained

In 2023, the Conservative government under Rishi Sunak introduced the Renters Reform Bill, a piece of legislation designed to improve conditions for tenants. Its proposals included the abolition of “no-fault” evictions, the creation of a private rented property portal, and granting tenants the right to request permission to keep pets.

However, the bill did not complete its passage through Parliament. Following the Labour Party’s election victory in 2024, the legislation was scrapped and replaced with a new Renters’ Rights Bill. While Labour’s version retained some elements of the earlier proposals, it also introduced additional measures aimed at strengthening tenant protections.

By late 2025, the new bill had successfully passed through Parliament, securing strong support at its second reading, where 440 MPs voted in favour and 111 opposed. To allow landlords and other stakeholders time to adapt, the reforms are being introduced in stages. Many provisions are set to take effect from 1 May, with further measures to follow later in the year.

A Changing Rental Landscape

The reforms come against the backdrop of a growing housing crisis in the United Kingdom. Rising house prices and limited supply have made home ownership increasingly difficult, leading to a significant expansion of the private rented sector.

In 1980, only around 10% of people in the UK privately rented their homes. This figure remained relatively stable throughout the 1990s, but has risen sharply since the early 2000s, reaching approximately 19% in recent years. In London, the increase has been even more pronounced, with the proportion of renters rising from 16.6% in 1981 to over 30% by 2021.

This shift has had notable economic implications. Rather than building equity through mortgage payments, a growing share of the population is allocating a substantial portion of their income to rent. According to analysis by the Home Builders Federation, the UK has the highest proportion of people in Europe considered “overburdened” by housing costs—defined as spending more than 40% of income on housing. This figure rose from 15.8% in 2011 to 19.9% in 2020.

Despite these changes, the private rented sector has seen little substantial reform since the 1980s. The 2025 Renters’ Rights Act represents an attempt to address this imbalance and modernise the system.

Key Provisions of the Renters’ Rights Act

One of the most significant changes introduced by the Act is the abolition of assured shorthold tenancies, which have been the dominant form of rental agreement since the late 1980s. These contracts typically run for fixed terms of six to twelve months, after which landlords can regain possession of the property with relatively little notice.

Under the new legislation, periodic assured tenancies will become the default. These are rolling contracts without a fixed end date, offering tenants greater security. Alongside this, the Act abolishes Section 21 notices—commonly known as “no-fault” evictions—which previously allowed landlords to evict tenants without providing a reason, often with just two months’ notice.

Landlords will still be able to regain possession of their properties, but only under specific conditions and with a minimum of four months’ notice. Valid grounds may include selling the property or housing a close family member. In some cases, restrictions will also apply to prevent landlords from immediately re-letting the property, with waiting periods of up to 12 months.

The Act also introduces measures to limit rent increases. Landlords will be permitted to raise rents only once per year, and must provide at least two months’ notice. Any increase must reflect the market rate, and tenants will have the right to challenge excessive increases through a tribunal.

In addition, the practice of rental bidding—where prospective tenants offer above the advertised rent to secure a property—will be prohibited. Landlords will be required to publish a clear asking price and will be barred from encouraging or accepting higher offers.

Another notable provision concerns pets. Tenants will have the right to request permission to keep a pet, and landlords will be required to consider such requests reasonably. Personal preferences or past negative experiences with pets will not, on their own, constitute valid grounds for refusal. However, legitimate concerns—such as property size, allergies affecting other occupants, or restrictions imposed by a freeholder—may justify denying a request.

The legislation also establishes a new private rented sector database. This platform is intended to serve as both a resource for landlords, helping them stay informed about their legal obligations, and a tool for tenants, enabling them to verify that properties meet required standards. While the full details of the database are still under development, it is expected to play a central role in improving transparency.

Implementation and Reactions

The reforms are being introduced gradually. Key changes, including those relating to tenancy agreements and pet ownership, are scheduled to come into force on 1 May. Other elements, such as the property database and a new private landlord ombudsman, will be implemented later in the year.

The legislation has prompted mixed reactions. Tenant advocacy groups have broadly welcomed the measures, viewing them as a long-overdue step towards greater security and fairness. However, concerns have been raised within the landlord community.

Some reports suggest a surge in the use of Section 21 notices ahead of the May deadline, as landlords seek to regain possession of properties before the new rules take effect. This behaviour has been interpreted by some as an indication that certain landlords may exit the market, potentially reducing the supply of rental properties and exerting upward pressure on rents.

There are also concerns about the capacity of the court system. With evictions now requiring formal grounds and, in many cases, legal proceedings, the courts are expected to play a more prominent role. Given existing backlogs, this could lead to delays and increased complexity for both landlords and tenants.

Looking Ahead

As the new rules begin to take effect, their real-world impact remains to be seen. The Renters’ Rights Act represents one of the most significant overhauls of the private rented sector in decades, aiming to rebalance the relationship between landlords and tenants. Whether it succeeds in improving affordability, security, and overall housing conditions will depend on how these reforms function in practice over the coming years.

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