Property News Blog - The UK Renters' Reforrm Bill 2025: Hidden Issues for Landlords & Renters

The UK government’s Renters’ Rights Bill, introduced in September 2024 and expected to become law by late 2025, promises to reshape the private rental sector in England. Aimed at delivering greater security and fairness for the country’s 11 million private renters, the bill abolishes no-fault evictions, reforms tenancy structures, and introduces new protections. While the legislation has been broadly welcomed by tenant advocacy groups, it also raises concerns for both renters and the 2.3 million landlords operating in the sector. Below, we explore the potential hidden issues that could emerge for both sides, offering a balanced perspective on this transformative reform.

What Is the Renters’ Rights Bill?

The Renters’ Rights Bill replaces the earlier Renters (Reform) Bill, which stalled before the 2024 general election. Its flagship measures include abolishing Section 21 “no-fault” evictions, transitioning all tenancies to periodic (rolling) agreements, limiting rent increases to once per year at market rates, and introducing protections like the Decent Homes Standard and Awaab’s Law to address poor housing conditions. Additional provisions ban rental bidding wars, prevent discrimination against tenants with children or on benefits, and allow tenants to request pets, which landlords cannot unreasonably refuse. A new landlord ombudsman and private rented sector database aim to improve accountability and compliance.

While these changes address long-standing tenant concerns, they also introduce complexities that could create unintended consequences for both renters and landlords. Let’s unpack the hidden issues.

Hidden Issues for Renters

1.	Potential Rent Increases The bill allows landlords to raise rents annually to “market rates” with two months’ notice via a Section 13 notice. Tenants can challenge excessive increases through the First-tier Tribunal, but this process may deter some due to time, cost, or fear of landlord retaliation. In high-demand areas, market rates could climb rapidly, especially if landlords raise rents to offset new regulatory costs, such as compliance with the Decent Homes Standard or pet insurance requirements. Some tenant groups, like the Renters Reform Coalition, argue for stronger rent stabilization measures, warning that unchecked increases could act as “backdoor evictions” for those unable to afford hikes.
2.	Tribunal Access and Effectiveness The bill empowers tenants to challenge unfair rent increases or poor conditions at the Tribunal, with reforms ensuring tenants won’t face higher rents than proposed. However, the Tribunal system’s capacity is a concern. Delays or backlogs could leave tenants in limbo, particularly if disputes escalate. For renters unfamiliar with legal processes, navigating the system might feel daunting, potentially undermining the bill’s promise of empowerment.
3.	Risk of Reduced Rental Supply By removing fixed-term tenancies and Section 21 evictions, the bill gives tenants greater flexibility to leave with two months’ notice. However, some landlords may exit the market, fearing reduced control over their properties or longer eviction processes under expanded Section 8 grounds. A 2025 survey by the National Residential Landlords Association suggested 20% of landlords planned to reduce their portfolios due to regulatory pressures. A shrinking rental supply could intensify competition, driving up rents and limiting options, especially in urban areas.
4.	Incomplete Protections for Vulnerable Groups While the bill bans discrimination against tenants with children or on benefits, it doesn’t explicitly protect other marginalized groups, such as non-UK passport holders or those with criminal records. Local Government Association reports highlight that these cohorts still face barriers, potentially leaving gaps in the bill’s fairness goals.

Hidden Issues for Landlords

1.	Increased Financial and Administrative Burdens The bill imposes new obligations, such as meeting the Decent Homes Standard, complying with Awaab’s Law for prompt hazard repairs, and registering properties on a private rented sector database. These requirements could raise costs for landlords, particularly those with older properties needing upgrades. Small-scale landlords, who make up a significant portion of the sector, may struggle with these expenses, potentially leading to property sales or higher rents to cover costs.
2.	Challenges with Evictions With Section 21 abolished, landlords must rely on Section 8 grounds for possession, which include reasons like rent arrears, selling the property, or moving in themselves. While the bill strengthens some grounds, eviction processes could become lengthier and costlier, especially if tenants contest claims in court. Industry experts, including Paul Shamplina of Landlord Action, warn of a “tsunami” of pre-ban Section 21 notices as landlords act before the rules change, potentially clogging courts further. Without robust court reforms, delays could leave landlords unable to recover properties promptly.
3.	Uncertainty Around Periodic Tenancies The shift to periodic tenancies means tenants can leave at any time with two months’ notice, creating uncertainty for landlords accustomed to fixed-term stability. Goodlord’s 2025 State of the Lettings Industry report found 58.5% of tenants prefer fixed terms, suggesting the change might not universally benefit renters either. For landlords, frequent tenant turnover could increase void periods and reletting costs, particularly in less competitive markets.
4.	Potential for Disputes Over Pets and Repairs The right for tenants to request pets, with landlords unable to unreasonably refuse, introduces risks of property damage. While landlords can require pet insurance, disputes over what constitutes “reasonable” refusal could lead to mediation or Tribunal cases, adding complexity. Similarly, Awaab’s Law mandates swift action on hazards like mould, but landlords may face disagreements over responsibility, especially in cases of tenant neglect, potentially escalating to costly legal battles.

Balancing Act: Opportunities Amid Challenges

Despite these hidden issues, the Renters’ Rights Bill offers opportunities. For renters, the end of no-fault evictions provides unprecedented security, empowering them to challenge poor conditions without fear of swift eviction. The Decent Homes Standard and Awaab’s Law should raise property quality, benefiting those stuck in substandard homes. For landlords, clearer grounds for possession under Section 8 and mediation via the ombudsman could streamline disputes, provided courts keep pace.

To navigate the challenges:

Landlords should review tenancy agreements now, ensure properties meet the Decent Homes Standard, and budget for new compliance costs. Joining reputable landlord associations can provide guidance and advocacy.
Renters should familiarize themselves with their new rights, particularly around challenging rent increases and reporting hazards. Community groups and tenant unions can offer support in navigating Tribunal processes.

Conclusion

The Renters’ Rights Bill 2025 is a bold attempt to rebalance the PRS, but its hidden issues could trip up both landlords and renters. Landlords face financial strain and procedural hurdles, while renters risk higher costs and inconsistent enforcement. Both sides need to prepare proactively—landlords by aligning with new rules, renters by understanding their strengthened rights. As the bill moves through the House of Lords and toward Royal Assent, staying informed will be key to thriving in this transformed rental landscape.

For the latest updates on the Renters’ Rights Bill and practical advice for landlords and tenants, keep checking

Balancing Act: Opportunities Amid Challenges

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