What does the Renters’ Rights Bill 2025 mean for tenants in the UK?
The Renters’ Rights Bill 2025 makes major changes to how renting works in England. It removes Section 21 ‘no fault’ evictions, replaces fixed term contracts with rolling tenancies, introduces clearer rules on rent increases, and sets legal standards for property conditions. These updates aim to make renting fairer and more stable for both tenants and landlords. It means renters can feel more secure in their homes, and landlords have clearer guidance on their responsibilities and rights.
What We Have Covered In This Article?
- What does the Renters’ Rights Bill 2025 mean for tenants in the UK?
- Section 21 is being scrapped: what this means in practice
- Tenancies will now roll automatically: no more fixed end dates
- Rent increases will follow a single, fair process
- Homes must now meet legal living standards
- Pets, families, and people on benefits must be treated fairly
- What is rental bidding and why is it being banned?
- How does the new landlord ombudsman service work?
- New rules on rent in advance: what has changed?
- What is the Private Rented Sector Database?
- How will enforcement change under the new rules?
- How do rent repayment orders work under the new rules?
Section 21 Is Being Scrapped: What This Means In Practice
Until now, landlords could ask tenants to leave with two months’ notice and did not need to give a reason. That is changing. Section 21, often called a ‘no fault eviction’, is being scrapped. From 2025, landlords will only be able to end a tenancy using specific legal grounds, such as selling the property, moving back in, or if the tenant has broken the terms of the agreement.
This change means tenants can feel more secure and will not have to worry about losing their home without warning. It also encourages more open conversations between landlords and tenants about repairs, rent, or any issues with the property, without the fear of being evicted for speaking up.
For landlords, the Bill still allows properties to be taken back when there is a good reason, but now the process is more formal and based on clear grounds. These include rent arrears, anti social behaviour, damage to the property, or a need to sell. Courts will continue to be involved where necessary to make sure the process is fair.
Tenancies will now roll automatically: no more fixed end dates
The Bill introduces a new standard for tenancies. All tenancies will now be periodic by default, meaning there is no fixed end date. This applies to both new and existing tenancies, and it means the agreement rolls on month to month unless the tenant decides to leave or the landlord has a legal reason to end it.
Tenants will be able to give two months’ notice at any time to leave a property. This gives renters more flexibility to move when life changes, whether it is starting a new job, moving in with a partner, or buying a home.
For landlords, it removes the pressure of keeping track of fixed terms and renewing agreements. If a tenant breaks the terms of the tenancy, or if there is a valid reason to reclaim the property, landlords can still take action using one of the updated possession grounds.
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Rent Increases Will Follow A Single, Fair Process
The new rules mean landlords can only raise the rent once a year, and even then, they must follow a clear process. A formal notice called a Section 13 must be given to the tenant with at least two months’ notice. The increase has to reflect the going market rate for similar properties in the area.
Tenants who think the new rent is too high can take their case to the First-tier Tribunal. The tribunal will look at similar rents locally and decide if the increase is fair. If the tribunal disagrees with the landlord, the rent may stay the same or be lowered. If they agree, the rent will be adjusted from the date of the decision, not backdated, so tenants will not be hit with unexpected arrears.
Also, landlords can no longer include rent review clauses in tenancy agreements, which previously allowed for automatic increases. This change helps everyone understand what to expect and stops landlords from using rent rises to push tenants out unfairly.
Homes must now meet legal living standards
From 2025, the Decent Homes Standard will apply to the private rental sector for the first time. This means rented homes must be safe, in good repair, and offer a reasonable standard of comfort. Landlords must now make sure their properties are free from serious hazards like damp, mould, unsafe electrics, or poor insulation.
The Bill also includes Awaab’s Law, introduced after the death of a toddler due to untreated mould in a rented home. Now, if a tenant reports a serious hazard, landlords have a legal duty to fix it within set time limits. If they do not, tenants can take action in court or through the new ombudsman service.
Most landlords already take property maintenance seriously, but these changes ensure every home meets basic living standards. Local councils will have more powers to inspect properties and take action where needed. Tenants can also apply for rent repayment if their landlord refuses to deal with serious issues.
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Pets, Families and People on Benefits Must Be Treated Fairly
The law now prevents landlords and letting agents from turning down applicants just because they have children or claim benefits. Adverts that say “no DSS” or “no children” are banned. Everyone has the right to be considered fairly, based on whether they can afford the rent and keep to the agreement, not on their family setup or income source.
There is also a new right for tenants to request permission to keep a pet. Landlords must consider this properly and cannot say no without a good reason. To protect their property, landlords can ask tenants to pay for pet damage insurance, but only if it is reasonable.
This change helps more people find a home, especially families and pet owners who often face extra barriers in the rental market. It also helps landlords attract a wider range of reliable tenants while keeping fair and sensible protections in place.
What is rental bidding and why is it being banned?
Rental bidding is the practice where landlords or letting agents invite or accept offers from tenants that are higher than the advertised rent. This often happens in competitive areas where demand for rental homes is high. The Renters’ Rights Bill 2025 will make this practice unlawful.
From now on, landlords must clearly state a single asking rent for each property and cannot accept any offers above this figure. Letting agents are also prohibited from encouraging prospective tenants to bid more than the advertised amount. This measure removes unfair competition between tenants and keeps pricing transparent.
By eliminating bidding wars, the government aims to bring stability to the private rented sector and help people find homes without being priced out at the last minute. For more on current property rules and landlord requirements, our lettings regulations guide outlines what every property owner should know.
How Does The New Housing Ombudsman Scheme Work?
A new independent ombudsman service is being introduced to handle complaints from tenants about landlords. All private landlords in England must register with this scheme, even if they use a managing agent. The service will offer free, impartial dispute resolution and has the legal power to require landlords to put things right.
If a tenant has tried to resolve an issue directly and has not received a fair response, they can take their case to the ombudsman. The service can instruct landlords to apologise, carry out repairs, share documents, or pay compensation. It creates a faster, fairer way to resolve issues without needing to go to court.
Tenants will be able to contact the ombudsman online or by telephone. Landlords who fail to join the scheme or ignore decisions may be fined or face rent repayment orders. Councils can also take enforcement action for repeated noncompliance.
To learn more about complaint handling or the rights and obligations of landlords, see our detailed landlord responsibilities overview.
New rules on rent in advance: what has changed?
Some landlords have asked tenants for six months or more rent in advance before agreeing to let them move in. This practice made it harder for many people to access rented homes, especially those on lower incomes or without savings. The Renters’ Rights Bill now puts clear limits on how much rent can be paid upfront.
Landlords are no longer allowed to demand more than one month’s rent in advance before a tenancy begins. For weekly or fortnightly rental agreements, this limit is capped at 28 days. Landlords also cannot insert terms into tenancy agreements that require rent to be paid before it is actually due during the tenancy.
These changes prevent financial pressure being placed on tenants at the point of signing a contract. However, tenants can still choose to pay ahead voluntarily if they prefer to do so. Local councils can issue civil penalties of up to £5,000 for landlords or agents who break these rules.
If you are unsure how this impacts your existing rental agreements, our rent collection and payment advice page provides straightforward guidance for landlords and tenants.
What is the Private Rented Sector Database?
The Renters’ Rights Bill introduces a new national database for the private rented sector. All landlords letting out properties under assured or regulated tenancies must register both themselves and their rental properties on this system.
The aim is to improve transparency for tenants and provide local authorities with the tools to identify poor quality housing and noncompliant landlords. For tenants, the database allows them to check if a landlord is properly registered and whether a property meets required legal standards before they sign an agreement.
For landlords, registration will become a legal condition for using certain possession grounds to reclaim a property. Failure to register may lead to enforcement action, financial penalties up to £7,000, or even criminal prosecution for repeated breaches. Local authorities will use the database to support targeted inspections and enforcement efforts.
If you are unsure how this affects your current lettings, our landlord compliance checklist outlines the steps you need to take to meet registration requirements.
How will enforcement change under the new rules?
The new legislation gives local councils stronger enforcement powers and better tools to investigate and act on breaches. Councils can now issue civil penalties of up to £40,000 for serious or repeated offences. This includes failure to join the ombudsman, not registering on the PRS database, or misusing legal grounds to evict tenants.
New investigatory powers allow councils to request information from landlords, letting agents, banks and third parties. They can also enter business premises and, in limited cases, residential properties to gather evidence. These changes will support more consistent enforcement across the country and reduce the burden on tenants to take legal action themselves.
First offences or minor breaches may still be dealt with through smaller fines or warning letters, but the law is now clear that landlords must meet their obligations. If you manage a portfolio or rent out multiple properties, staying up to date with letting legislation changes is more important than ever.
How do rent repayment orders work under the new rules?
A rent repayment order is a legal tool that allows tenants to reclaim rent from landlords who have broken the law. This includes unlawful eviction, serious disrepair, failure to register with the database, or repeated breaches of tenancy reform regulations.
Under the updated rules, the maximum rent a landlord can be ordered to repay has doubled to 24 months. These orders now apply not just to direct landlords, but also to superior landlords and companies who are involved in rent to rent schemes. Tenants can apply for an order through the First-tier Tribunal and do not need to go through the local council to start a claim.
Repeat offenders will automatically face the maximum penalty. Landlords who have previously been fined or convicted for the same type of offence will be required to repay the full amount of rent collected over two years. This sends a clear message that noncompliance will have serious consequences.
To learn more about rent repayment claims or if you think you might be eligible to apply, visit our page on tenant compensation and legal support.
Summary
The Renters’ Rights Bill 2025 introduces important legal changes for both tenants and landlords across England. By setting clear rules around evictions, rent increases, property conditions, and tenancy agreements, the law aims to improve the private rented sector for everyone.
At Barrain London Estate Agents, we help landlords stay compliant and support tenants in understanding their rights. If you need help updating agreements, managing tenancies, or registering your properties, we are here to support you with clear advice and up to date guidance.
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