Landlords and the Renters’ Rights Bill 2025: how to stay compliant and protect your investment

Renters Rights Bill

 

The Renters’ Rights Bill aims to transform the private rented sector and ‘rebalance’ the relationship between tenants and landlords. When the Bill finally becomes law, new legislation will be introduced to boost compliance, improve housing quality and underpin landlords’ legal obligations.

During its progress through parliament, Government ministers have been keen to point out that their intention is not to “demonise landlords”. Despite their efforts, the proposed new laws have created some alarm in the sector. A survey of 942 UK landlords published in February found that 88 per cent of respondents were planning to sell up, reduce or reshape their portfolios.

Big changes may lie ahead, but responsible landlords providing good quality accommodation should have little reason for concern. In this blog we will show you how to keep up with the new laws. We’ll also help you prepare for the abolition of ‘no fault’ evictions and understand the legal process that will replace Section 21. Most importantly, we will show how you can maintain profitability by positioning your business for long-term success.

What are the new eviction rules?

In circumstances where the tenant is not at fault, landlords will use an expanded Section 8 process for evictions. New grounds for possession will include selling the property or using it as a main residence, either for the landlord or a close family member (these reasons must be genuine and supported by evidence). If the property is to be refurbished, the landlord must be able to demonstrate that the work can’t be done with a tenant in situ.

Section 8 will also be used when tenants persistently and significantly breach their tenancy agreement. In such cases, the government has emphasised the importance of careful documentation, as these records can be used as evidence if the case goes to court.

However, steps can be taken to avoid tenant disputes in the first place. Issues can be minimised through careful tenant screening and by drafting legally sound and comprehensive tenancy agreements. Be open to compromise and maintain clear and open channels of communication at all times to reduce the chance of a situation escalating.

Protecting landlord investment under the new Bill

The Bill places a strong emphasis on UK landlords’ responsibilities. Generally, landlords will need to keep good records, observe correct notice periods, keep up to date with legal compliance, and carry out regular maintenance.

An online database for landlords will be created to hold details of individual properties. Legal documentation, including evidence of annual safety checks, must be uploaded to the site, where they can be accessed by local authorities and potential tenants. A landlord compliance guide for UK properties will be provided so landlords are fully aware of their responsibilities.

This initiative aims to promote transparency and encourage good practice. While it may entail extra work for some, staying compliant and maintaining your property in good condition is essential to protect your investment.

Proactive landlords will get ahead by future-proofing their properties. This could involve making safety improvements or undertaking necessary repairs before the start of a tenancy. A safe and fully compliant property is not just reassuring for tenants, it means fewer expensive emergency call-outs in future.

Professional help

The English Private Landlord Report of 2021 showed that one in five landlords was using an agent to manage their properties. It is anticipated that this number will rise when the Renters’ Rights Bill comes into effect.

Busy landlords who fear the Renters’ Rights Bill could increase their workload may find that specialist help is the best solution. Professional managers have expertise in navigating legal changes and ensuring compliance with new laws. They are also adept at dealing with tenant disputes, scheduling property maintenance and handling routine financial administration. Profitability is unlikely to suffer, as agency fees are tax deductible against rental income.

Future opportunities

Once Bill becomes law, we are likely to see a growing awareness amongst tenants of their right to live in a property that is well maintained, safe and secure. Landlords offering high quality accommodation can capitalise on this perception, attracting more applicants and encouraging tenants to stay on longer.

One of the unintended consequences of the new legislation could be an increase in rental prices. If landlords do leave the sector in significant numbers, this could result in a shortage of rental properties, leading to a spike in rents. While this is not helpful for tenants, it will reward those landlords who have chosen to remain in the sector and who continue to invest in their high quality rental portfolios.

When will the Bill become law?

The Renters’ Rights Bill is currently progressing through the House of Lords, with several stages to go before royal assent is granted. Currently, it is expected that the Bill will become law in late 2025 or even early 2026.

That means there is still time for landlords to check that their properties are compliant and, if not, take steps to bring them up to date. For landlords who need help to do this, choosing a knowledgeable, qualified agent is more critical than ever.

As property management professionals with over 30 years’ experience of the London lettings market, we are ideally placed to guide landlords through the changes that lie ahead.

Why not contact the lettings teams at our offices in Westminster, London Bridge or Kennington and let us know how we can help?