Will the New Legislation Make It More Difficult to Remove Our Lodger?

The Renters’ Rights Bill 2025 What It Means for Landlords and Tenants

The UK’s private rental sector is on the cusp of significant reforms with the introduction of the Renters’ Rights Bill 2025. This comprehensive legislation, currently making its way through Parliament, promises to enhance tenant protections, redefine landlord obligations, and set new standards for rental properties.

Here is a detailed look at the key changes and what they mean for both landlords and tenants.

Abolition of Section 21 Evictions

One of the most pivotal changes is the abolition of Section 21 evictions, commonly known as “no-fault” evictions. Under the current system, landlords can terminate tenancies without providing a valid reason. The new bill eliminates this provision, ensuring that landlords must rely on specified grounds under Section 8, such as rent arrears, anti-social behaviour, or a legitimate intention to sell the property.

This reform is expected to provide tenants with greater security and stability, allowing them to build lives in their communities without the fear of sudden eviction. However, landlords have expressed concerns about the potential impact on their ability to regain possession of their properties. To address these concerns, the bill introduces stronger grounds for possession and reformed court processes to ensure a more efficient and fair system.

Simplified Tenancy Structure

The Renters’ Rights Bill introduces a single system of periodic tenancies, doing away with fixed-term assured shorthold tenancies. This means that tenancies will automatically convert to rolling periodic tenancies, offering tenants more flexibility.

Tenants will be able to give two months’ notice to end their tenancy at any time, while landlords will need to provide a minimum of four months’ notice for certain grounds, such as personal use or sale of the property, but only after eight months of tenancy.

Rent Increases and Bidding Wars

To provide tenants with greater financial stability, the bill introduces stricter regulations on rent increases. Landlords will be permitted to raise rents only once a year, and any increase must align with market rates.

Additionally, rental bidding wars will be prohibited, with landlords and agents required to publish a clear asking rent and forbidden from accepting offers above this price.

Deposit Reform and Advance Rent Payments

The bill aims to reduce the financial burden on tenants through several key reforms. Advance rent payments will be capped at one month’s rent, and landlords will no longer be able to demand more than this amount.

The Tenant Fees Act will be amended to make advance payments of over one month’s rent a prohibited payment. However, tenants can still choose to pay more if they wish.

Enhanced Property Standards

The Decent Homes Standard, previously applicable only to social housing, will now extend to private rentals. This ensures that properties meet minimum standards of safety, warmth, and decency.

Additionally, the bill introduces improved Energy Performance Certificate requirements, with landlords facing significant compliance costs and potential penalties of up to £5,000 per property for non-compliance.

The tragic case of Awaab Ishak, who died due to mould exposure, has led to the introduction of Awaab’s Law. This law mandates that landlords address serious health hazards, such as mould or damp, within a set timeframe to avoid penalties.

Protections for Tenants

The bill includes several measures to protect tenants from discriminatory practices. Landlords will no longer be able to refuse tenants solely based on having children or receiving benefits.

There is also a new right for tenants to request pets in rental properties, although landlords can still refuse on reasonable grounds and may request pet insurance to cover potential damages.

Impact on Lodger Licences

While the primary focus of the Renters’ Rights Bill is on tenancies, there are implications for lodger licences as well. The shift towards periodic tenancies and the abolition of Section 21 evictions could influence how lodger agreements are structured and terminated.

Landlords will need to ensure that any lodger licences comply with the new standards and protections, particularly in terms of notice periods and grounds for termination.

Next Steps and Implementation

The Renters’ Rights Bill has cleared the House of Commons and is currently in the Committee Stage in the House of Lords. With an implementation target set for October 2025, landlords and tenants alike should stay updated on the bill’s progress.

The Government’s Guide to the Renters’ Rights Bill provides detailed information on the changes and their implications.

Conclusion

The Renters’ Rights Bill 2025 marks a significant overhaul of the UK’s private rental sector, aiming to balance the rights of tenants with the responsibilities of landlords. While there are concerns about increased administrative burdens and compliance costs, the bill promises to deliver much-needed security and fairness for renters.

As the bill continues its legislative journey, it is crucial for both landlords and tenants to understand the forthcoming changes and how they will impact their lives and businesses.

At Cutts & Co Accountancy, we are committed to helping our clients navigate these changes and ensure they are fully prepared for the new regulatory landscape.

If you have any questions or need advice on how the Renters’ Rights Bill might affect your property or tenancy, do not hesitate to contact us.