Big changes are on the horizon for England’s rental market. The Government’s Renters’ Rights Bill is making its way through Parliament and promises to transform the way private tenancies operate - with implications for landlords (and tenants).

Whilst most of these changes will impact the current Assured Shorthold Tenancy market, certain elements such as blanket bans on pets and children, Registration and/or Redress may extend to all landlords irrespective of the rental level.

Following a successful Second Reading in the House of Lords in February, the Bill now enters detailed scrutiny at Committee stage, beginning on 22nd April.

So far, nearly 150 amendments have been tabled by peers - some aiming to test the Government’s thinking, others pushing for real change. The proposals cover everything from the pressure on the courts to the practicalities of pet insurance.

It’s not law yet, and further tweaks are likely, but the trajectory is clear. Here’s what’s on the table:

Ending ‘No Fault’ Evictions

At the heart of the Bill is the removal of Section 21 notices. This means landlords will no longer be able to ask tenants to leave without giving a specific reason. Instead, they’ll need to use Section 8 – where there’s a defined ground, such as selling the property or moving back in. Tenants must be given four months’ notice, which can be provided within the 12-month protection period given to tenants in these cases – for example, a landlord can issue a Section 8 notice at month eight, so that the tenant leaves as soon as their protection period finishes, at the end of month twelve.

More Grounds for Possession – With Longer Notice Periods

The Bill proposes more flexibility around Section 8, introducing new grounds for student lets, employment-linked tenancies, and properties that need to be sold. At the same time, notice periods are being extended - most will double from two to four months. The threshold for rent arrears to trigger a mandatory eviction is also increasing to at least three months. There are exceptions such as cases involving serious anti-social behaviour or criminal activity, where landlords can act immediately (subject to the usual eviction processes).

The UK Government also plans to issue additional guidance for landlords, outlining the evidence required to demonstrate that a valid ground for eviction applies. The aim is to provide greater clarity for landlords and ensure more consistent decisions from the courts.

No More Fixed Terms – Just Rolling Contracts

The days of fixed-term tenancies look to be numbered. All future agreements will be periodic - rolling month to month, with no end date. This means that the tenancy will continue until either the landlord or tenant gives notice to bring it to an end. Tenants will be able to give just two months’ notice to leave, even immediately upon moving in.

Rent Rises: Once a Year, With Formal Notice

Rent increases will be capped at once per year and must follow a formal Section 13 process, with tenants receiving two months’ notice. If they believe the increase is above market rate, they’ll be able to appeal to the First-tier Tribunal before the next rent payment, but tenants must inform landlords of their intention to do so.

Upfront Rent Payments to Be Curbed

The UK Government is looking to prevent tenants from paying rent upfront (certain tenants such as overseas students and those who are self-employed use this method as an alternative way to evidence their ability to sustain a tenancy). The Bill will limit rent in advance to one month. While landlords can still request a five- or six-week deposit, larger upfront sums will be banned. Guarantors and affordability checks will become more important than ever.

Pets in Rentals? Likely. But With a Safety Net

Under the new rules, tenants will have the right to request a pet, and landlords will not be able to unreasonably refuse. Guidance on what is considered a “reasonable refusal” will be available before this part of the Bill comes into effect. To help ease concerns, the law will allow landlords to pass on the cost of pet insurance to cover any potential damage.

New Registration and Redress

Plans are underway to introduce a central Private Rented Sector Database. Under the new rules, landlords will be legally required to register both themselves and every property they let. This registration must include details of the managing agent (if applicable), any previous enforcement action taken against the landlord or agent, and records of eviction notices previously served to tenants.

The Database will give landlords access to up-to-date guidance and act as a tool for demonstrating compliance with the new regulations. Registration will be compulsory, with fees paid by landlords covering the cost of the system. These fees will also fund the creation and operation of a new Private Rented Sector Ombudsman.

In parallel, every landlord must join a government-approved Ombudsman scheme, giving tenants - past and present - access to a quicker, more accessible route for resolving complaints. The Ombudsman is intended to help prevent disputes from escalating to the courts and will also offer clear guidance to landlords on how to address issues and handle complaints effectively.

Minimum Standards and Hazard Deadlines

For the first time, private rental properties will be required to meet the Decent Homes Standard. In addition, the social sector’s ‘Awaab’s Law’ will be extended to the private sector introducing fixed timeframes for landlords to address serious hazards such as mould and damp. Further details on the specific hazards covered and the time limits for making repairs will be outlined in forthcoming regulations.

Tougher Penalties for Non-Compliance

The list of offences that can lead to a rent repayment order is being expanded. In cases of repeat breaches, tenants could be awarded up to 24 months’ rent. Rent repayment orders are issued solely by the First-tier Tribunal and only when it is satisfied - beyond reasonable doubt - that the landlord has committed one of the specified offences.

Next Steps

The Renters’ Rights Bill still has some way to go before becoming law and is likely to undergo further amendments. While the Government initially aimed for implementation by summer 2025, delays in reaching the committee stage mean that timeline is now uncertain. Multiple sources have indicated that there will not be a transition period which means that all affected tenancies will automatically fall under the new regime as soon as the legislation comes into force.

Many details are still to be confirmed, particularly around how the amendments will be applied in practice - but one thing is clear: the rental landscape is changing.

Although these reforms in the industry are significant, the London market remains strong with high demand for rental properties. Harrods Estates is committed to ensuring our landlords are fully informed and prepared to adapt to these new changes; it is now more important than ever to use an experienced agent when it comes to letting and managing your property.

If you’d like to discuss how the proposed changes might affect you, our experienced team is here to help.

For the latest updates, you can access the Government’s official Guide to the Renters’ Rights Bill here,

The Prime Central London Property Market in 2024

HARRODS ESTATES