Renters Reform Bill

Key Changes Introduced by the Bill

1. End of Fixed-Term Tenancies

One of the most notable changes is the phasing out of fixed-term ASTs. Instead, all tenancies will convert to open-ended periodic agreements, which continue on a month-by-month basis.

What This Means:

• During the first 12 months, landlords cannot reclaim possession in order to sell or move back in—tenants will have a protected period unless there’s a breach of contract.
• Historically, tenants stay in properties for an average of 24 to 30 months, and it's more common for tenants to end a tenancy than for landlords to do so.
• Tenants must give at least two months’ notice to leave.
• Landlords will need to serve a Section 8 notice, specifying the reason for possession.
• Break clauses and automatic renewal options in both new and existing tenancy agreements will no longer be enforceable.

2. Section 21 Notices to Be Abolished

The Bill removes the use of Section 21 ‘no fault’ eviction notices. Landlords will instead need to rely on updated Section 8 grounds, which require a valid reason to regain possession of a property.

Most Relevant Grounds Include:

• Ground 1 (amended): Landlord or family member intends to move into the property.
• Ground 1A (new): Landlord plans to sell the property.
• Grounds 8, 10, 11: Rent arrears.
• Ground 12: Breach of tenancy terms not related to rent.
• Ground 14: Anti-social behaviour.

Each of these will come with a specific notice period, depending on the nature of the breach.

3. Reclaiming Possession: Selling or Returning to the Property

If you intend to move back into your property or sell it, you’ll need to:

• Serve a Section 8 notice citing Ground 1 or 1A.
• Provide at least four months’ notice.
• Ensure the notice does not expire within the first 12 months of the tenancy.

Additionally, you must be able to prove your intention—either that you or a family member have moved in, or that you marketed and sold the property.

Example:
If you issue notice to sell on 12 February 2026, the notice would expire on 12 June 2026.
If the sale does not go through, the property cannot be re-let until 13 June 2027, a full year after the notice expiry date.

4. Rent Increases: What’s Changing?

Landlords will no longer be able to rely on pre-agreed future rent increases.

Instead:

• You can propose an increase once per year, using a Section 13 notice.
• The new rent must be in line with local market values.
• A minimum of two months' notice is required.
• If a tenant disputes the increase, they can apply to the First Tier Tribunal. In such cases, we will facilitate dialogue to help reach an agreement.

5. Restrictions on Advance Rent Payments

The Bill introduces limits on how rent can be paid in advance.

• Tenants currently paying rent quarterly, biannually or annually can continue under their existing agreement.
• Under new tenancies, landlords will not be able to request rent more than one month in advance.
• Where affordability is an issue, tenants may use a guarantor, or in the future, an insurance-backed rent guarantee product, which is currently under consideration.

This element is based on a proposed government amendment and is likely to be introduced, although it hasn’t been confirmed.

6. Pets in Rental Properties

Under the new rules, blanket ‘no pets’ clauses will no longer be legally enforceable.

• You may continue advertising a property as not suitable for pets, but once the tenancy begins, you can only decline pet requests if:
• It conflicts with the head lease, or
• You can demonstrate a valid medical reason (e.g. severe allergies).

We suggest clearly stating pet restrictions linked to lease terms in any marketing materials.

Additional Reforms to Be Aware Of

Strengthened Enforcement by Local Authorities

Local councils will be given enhanced investigatory powers to enforce compliance, making it easier to penalise landlords who fail to meet new legal requirements.

Anti-Discrimination Measures

It will become unlawful to reject prospective tenants on the basis that they:

• Receive housing benefit, or
• Have children, provided the property is suitable.

Any mortgage or head lease clauses that prohibit these tenant types will be rendered void.

Reforms to Be Phased in at a Later Date

Compulsory Landlord Redress Scheme

All landlords—whether self-managed or using a letting agent—must become members of a redress scheme before marketing a property.

• Aims to resolve tenant disputes more quickly and cost-effectively.
• Reduces the need for court involvement.

Awaab’s Law in the PRS

Named in memory of Awaab Ishak, this legislation will:

• Set firm deadlines for addressing damp and mould issues.
• Apply these standards to the private rental sector for the first time.

Decent Homes Standard (DHS) in the Private Sector

Landlords will be required to ensure all rented homes meet the Decent Homes Standard, providing tenants with safe and secure living conditions.

National PRS Database

A digital register will be introduced, requiring landlords to register:

• Themselves
• Each rental property

Registration must occur before the property is listed or let.

• Tenants and local councils will be able to access this information.
• Letting a property that is not on the register will become a criminal offence.

Upcoming Energy Efficiency Requirements

By 2030 (subject to confirmation), all rental properties will likely need an EPC rating of C or higher.

• Current rules require a minimum Band E rating.
• Making improvements early may help avoid future complications.

EPCs are valid for 10 years and include recommendations for improving energy efficiency.

Enforcement and Penalties

Penalties for non-compliance are being significantly increased:

• Civil penalties up to £7,000 for minor breaches.
• Up to £40,000 for serious or repeated offences, or criminal prosecution in extreme cases.

Final Thoughts

This summary reflects the current draft of the Renters Reform Bill. As the Bill continues through the legislative process, amendments are likely, and timelines may shift. We are monitoring developments closely and will keep you informed of confirmed changes.