What Is the Renters’ Rights Bill? All the Details on This New Piece of Legislation

Few things are set to impact landlords and the rental market like the Renters’ Rights Bill will. Currently, some property investors may be worried about how their investments will pan out in the face of a struggling economy, inflationary challenges, and perhaps even global trade wars[1].

But, while we can’t be exactly sure of how all these issues will affect the BTL market, we know the Renters’ Rights Bill is forcing change. Landlords will need to adapt, more and more BTL investors will be asking themselves what is the Renters’ Rights Bill? And how can I prepare?

We’ll aim to address some of these concerns in this blog. We’ll explore exactly what has changed, and how the market may adapt.

What Is the Renters’ Rights Bill? Covering the Basics

The legislation was in the works (as well as the headlines) for so long before it passed, that many in the property world have likely already asked the question of what is the Renters’ Rights Bill at least once since Labour came to power. But now that it’s officially law, it’s worth reminding ourselves of exactly where we stand.

In a nutshell, it is a form of legislation (the spiritual successor to the Conservatives’ Renters’ Reform Bill[2]) that aims to completely reform the rental market. As the government itself puts it[3]: “The Renters’ Rights Bill delivers our manifesto commitment to transform the experience of private renting, including by ending Section 21 ‘no fault’ evictions.

The bill’s aim is to improve the system for both the 11 million private renters and 2.3 million landlords in England. It gives renters much greater security and stability so they can stay in their homes for longer, build lives in their communities, and avoid the risk of homelessness”.

Key Changes Under the Renters’ Rights Bill

The bill is wide ranging, with a fully amended version published in early 2025 topping 220 pages[4]. But, there are a few key changes that could dramatically affect how landlords operate – more so than others.

To start with, the bill forces landlords to give a written “statement of terms” to tenants before a tenancy is entered into, and there is a list of specific information that must be provided[5]. Currently, while tenancy agreements are the norm, they are not a legal requirement.

Also, fixed-term assured tenancies have been abolished and instead, all tenancies are now periodic. The bill has also increased the mandatory rent arrears threshold for eviction from two to three months’, and has doubled the notice period, from two to four weeks.

How much rent is collected from a property has also been upended. Landlords are now only able to receive up to one month’s worth of rent prior to the start of a tenancy, while also only being able to raise rents once a year. This is in an effort to protect tenants from unscrupulous landlords, rental bidding wars, and being “forced out the back door”.

Arguably, the most controversial change concerns eviction rules. Section 21 evictions, the kind that allow landlords in England to end ASTs without providing a reason[6], have been banned under the bill.

Elsewhere, the bill has introduced a national digital private rented sector database along with a new Ombudsman service, applied a “decent homes standard” to the market, ushering in Awaab’s Law, and more.

How May It Affect the Market

Landlords won’t be the only ones asking themselves what is the Renters’ Rights Bill. Renters likely also have been dramatically affected by its introduction.

While the new regulations are designed to support renters, they could have ramifications that makes things difficult for them. For example, to keep up with the rising costs of accommodating the decent homes standards, rents may have to rise. The costs could be passed on to tenants.

It may also be challenging for some smaller landlords to keep up with the changes. Rather than deal with the new landscape, many may simply abandon the market. In fact, there is already evidence proving that this is a key concern in the market.

What Is the Renters’ Rights Bill’s Impact on Landlords So Far?

Ironically, the bill is causing what its creators hoped to make history. Even prior to the new rules being made official, there was a significant rise in section 21 evictions, according to the Ministry of Justice[7]. Some 32,287 claims were issued in 2024, up 7% on 2023.

There was also a spike in landlords putting their properties up for sale in the face of tougher rules, as well as higher costs. Over 111,000 rental properties were sold to owner occupiers in 2024 alone[8].  Ultimately, this limits options for renters.

Indeed, our own research has revealed nervousness among UK landlords. For our independent Q1 research, we surveyed landlords for their thoughts on the current market, and the outlook for their portfolios in 2025. Some 64% of our respondents either somewhat or strongly agreed with the statement: “I have decided to pause making any new property investments due to concerns around incoming regulatory and tax changes”.

Of course, in this survey, this was all a reaction to a bill that had yet to be rolled out. Now that it has become law, landlords and property investors may find that it is not as damaging as feared. Either way, Market Financial Solutions and the specialist market will be there to accommodate any new challenges or opportunities that emerge.